Maybe you did not get the chance to mine Bitcoin when it initially started. But the road has not ended. There is some good news for those who still want to attempt home mining. Solo bitcoin miners are still working on new blocks to get block rewards.
Read with us to know what is solo bitcoin mining and how it is making its presence felt.
What Is Bitcoin Mining? A Quick Recap
Before we start telling you about solo bitcoin mining, here is a recap of Bitcoin mining.
- Bitcoin mining not only secures the whole network but helps the Bitcoin network processes transactions and how new coins move into circulation.
- Mining also uses hash power or computational power through mining hardware that helps make complex calculations. The miner who finds these solutions first will win the block reward, which is by now BTC 6.25. This decreases every four years. The next halving of this amount will happen in 2024. Nowadays, around 900 BTC are mined every day.
Early Days Of BTC Mining:
Bitcoin mining could be done alone, or you can join a mining pool for the same. The Mining pools allow the miners to pool their computational power together and boost the chance of winning any block rewards. These block rewards are a proportional split done amongst all the pool participants.
Most of Miners indulge in mining through a pool. But there are also some who wish to keep trying their luck as solo miners.
What Is Solo Mining?
As the name specifies, Solo mining is the process of mining BITCOIN alone. That means the user does not join a mining pool.
As opposed to the pool miners who contribute the computational power and resources to mine Bitcoins, the sole miners do not take any other party’s support to mine. Instead, they find out blocks by connecting the mining devices to the wallets, and they are done.
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In case a solo miner can find a new block, they will get the full block reward to themselves. This could be a huge amount for one person. However, in order to find a new block, the solo Bitcoin miners need at-home mining set up as they should have sufficient hash power to start competing. Plus, the Bitcoin network’s mining difficulty will also play an essential role in the chance of winning block rewards.
Someone Solo Mined A Bitcoin Block: Here’s What Happened
Off-late there are talks of solo mining as there have been instances of solo mining winning sufficient block rewards. Also, let us not ignore that the present Bitcoin block reward is 6.25 BTC which is around a quarter of million dollars presently. For the miners, this could be life-changing earnings.
Cryptonews reported in January about one miner who was 126TH in hash power yet found a block and got USD 266,870 as a reward. Solo CK’s admin Con Kolivas broke this news who congratulated that solo miner.
Solo CK allows the home miners to avoid all costs of running the full Bitcoin mode, all the while remaining connected to the high-speed Bitcoin nodes to get rapid block change notification and propagation.
Kolivas further said that the response they received to this has been immense. He also cited that solo mining has been happening since day one in Bitcoin, but the solo mining hash rate is falling yearly.
Just one week post that another solo miner managed to hit the jackpot and won half a million dollars after he won an Ethereum block which translated into ETH 168 (USD 524,000). This miner had found a block that had an average hash rate capacity of 2.19 GH/s. This person started solo mining in late December, making the story more intriguing.
Should You Start Solo Mining At Home?
After reading all this news of solo miners winning huge rewards, you would be tempted to ask if you should begin solo mining too. Let us understand the facts.
Bitcoin mining needs a very costly mining setup. You cannot use your old computer and expect it to generate good results. Apart from that, electricity costs, cooling technologies, miner downtime, and repair costs are also factors you have to consider.
If you wish to be a solo miner, you will have to make a solid initial investment and also incur costs that the mining revenues would not cover.
Apart from that, solo mining to get a reward is like a lottery. The cases of solo miners managing to win big are few and far between. If you set a few ASIC’s miners at home, your chance of winning those 6.25 BTC is significantly less though the cost of operating this mining setup could be huge.
If you wish to do solo mining to make loads of money, there are better ways to accomplish that. But if you would want to play a part in securing the Bitcoin network with less interest in the reward, then you can give it a shot.