Can individual bitcoin digging at home be profitable?



A few weeks ago, it was announced that several miners, not only associated with a particular digging pool, had managed to extract a complete block from the bitcoin network individually, winning a full prize of 6.25 bitcoins for that block. Because most powerful miners and large mining farms are connected to shared pools and share their hash rates with them, miners separated from these pools have very little chance of being rewarded with network blocks; But how did this happen to these lonely domestic miners, and can such domestic activities be financially rewarding for people?

According to Cryptonews, in the early years of the bitcoin network, you can extract a significant amount of this digital currency with many basic systems; Today, however, these conditions vary from earth to sky. On the other hand, for those who want to dig bitcoins at home, there are still hopes to make money this way. In recent weeks, there have been rumors that bitcoin miners have extracted only one full block with a miner and received a prize.

Before we get into how this rare thing happened, we need to know a little bit about bitcoin mining and how it works.

Briefly about bitcoin digging

In the process of digging up bitcoins, in addition to protecting the blockchain, user transactions are processed using the power of miners’ computer systems, while new units are placed in the network cycle.

Extraction usually involves allocating hash power or computing power to the network using special hardware called miners. The main task of miners is to solve a series of complex mathematical problems. The miner who finds the answer to the problems related to a block before others wins the prize for that block. The retrieval bonus for each block is currently 6.25 bitcoins. However, the network block award is reduced to half of the previous figure every four years through a pre-programmed process called “Hawing”. The next Hawking is expected to happen in 2024. Currently, about 900 new bitcoins are mined daily.

Bitcoin mining can be done alone as a miner or by joining a mining pool. Digging pools allow miners to share their computing power and increase their chances of winning block prizes. Receipts are also distributed proportionally to all members of the pool based on the computing power of each member.

Most bitcoin diggers usually work in digging pools; Because the chances of individual miners to receive a reward from network blocks are very low. However, it seems that there are still those who prefer to try their luck as a solo miner.

What is solo extraction?

Can individual bitcoin digging at home be profitable?

Individual digging, as its name suggests, refers to individual digging, separate from bitcoin or another digital currency pool for proof of currency.

Unlike pool miners, who share their computing power and bitcoin mining resources, individual miners do not rely on another country to dig. In fact, once they connect their digging devices to a bitcoin wallet, they begin to discover new blocks, and the whole story ends in just a few steps.

If luck is on the side of a lone miner and he can find a new block, he will receive the full block reward, which could mean a change in that person’s financial life. However, in order for a miner to have only one chance to find a new unit, he needs expensive household appliances to be able to compete with other miners in terms of processing power. In addition, it can be said that the difficulty of retrieving the bitcoin network also plays an important role in the probability of winning the prize for each block.

Read also: What is a mining pool or a mining pool?

The story of the lone miner who pulled out a full block!

Recently, there have been rumors that several solo miners have managed to extract a complete blockchain from the bitcoin network. Influenced by this news, the issue of individual digging has once again become hot in the bitcoin community.

Let’s not forget that the reward for retrieving each block of the bitcoin network is currently 6.25 units, which is worth over $ 250,000 (about 6.5 billion tons) at today’s prices. For many people, this money can be a big change.

As Digital Currency reported in January, a miner with only 126 processors per second (TH / S) computing power managed to extract a whole block of bitcoin network for only $ 266,870. Bitcoin will receive prizes. Kon Kolivas, director of the Solo CK digging pool, was the first to publish the story, congratulating the miner and the happy user of the solo digging service. We should also add that Solo Siki, contrary to its name, is not a “digging pool” for bitcoins and is only a service for managing miners who operate individually and independently of the offered pools.

Solo Siki actually allows home miners to avoid the cost of setting up a full bitcoin bitcoin while “connecting to low-speed, low-bitcoin network nodes” to notify and quickly post changes to the block.

Colivas said:

The reactions to the idea (digging a pool) are fantastic, but keep in mind that people dig bitcoins individually from day one. The difference between individual and group extraction (with pool) is that the hashrate of individual miners decreases each year compared to before.

About a week later, another solo miner won 168 tokens worth more than half a million dollars, winning a full block of Atrium. The Atrium constructor was able to find and retrieve a block with an average hash capacity of 2.19 GHz (GH / s). This lucky man started his work at the end of December and this makes the story of these lone miners look even crazier.

Can individual production at home be financially rewarding?

Can individual bitcoin digging at home be profitable?

After hearing these stories, you may now be a little tempted to try solo extraction; But before you do anything, it’s better to look at the realities of the mining industry.

Digging for bitcoins or any other proof of digital currency requires relatively expensive equipment. You can’t expect astronomical income just by turning on an old device. In addition, the cost of electricity, the provision of cooling systems, the cost of repairing appliances and their downtime must be taken into account.

As a lone miner, you will have to make a significant initial investment and continue to make high running costs. In addition, there is no guarantee that your income from digging for bitcoins will cover these costs.

In addition, making a draw separately and hoping to win the prize from network blocks is a form of gambling. Reported cases of individual miners winning are very rare. If you pair a handful of ASIC miners at home, your chances of winning 6.25 bitcoins, which is the reward for extracting each block from the network, will be very small, while setting up the equipment can be financially rewarding.

So, if your goal in digging bitcoins individually at home is just to make money, there are probably much better ways to make money from digital currencies.

Read also: Bitcoin digging lesson + presentation of the best digging devices

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