Bitcoin mining 2020 - mine the popular cryptocurrency BTC!

Bitcoin Mining 2020: Profitable Bitcoin Mining Powerful Bitcoin Mining Hardware & Software Get information about crypto mining now.

The big hype around Bitcoin with constantly rising prices was only a few years ago. The crash in early 2018 was followed by months of relative calm and lack of interest. Bitcoin prices have been on the up again since April 2019. Some are already predicting that virtual money will reach prices well beyond the 20,000 euros. Bitcoin, the world's most important cryptocurrency, has developed from an alternative decentralized means of payment to a popular speculative object in recent years.

A rapidly increasing countervalue attracts more and more people who want to invest, because if you are there in time, you can quickly to make substantial profits. To benefit from the crypto boom, direct investment or buying Bitcoin on a crypto marketplace is one of several options in addition to trading cryptocurrencies and Bitcoin mining. In the guide, the question is investigated as to whether and how easy it is with mining to secure your own piece of the apparently huge crypto cake.

  • Generation of digital coins on the computer
  • By Mining cryptocurrency without using your own money
  • Mining the coins with your own computer, in pools or in the cloud
  • Mining alternative: Buy Bitcoin at a crypto exchange

Table of contents

  • Bitcoin mining: easy way to wealth?
  • Why is mining so complex?
  • Requirement for Bitcoin mining
  • Bitcoin mining hardware: ASICs
  • The Bitcoin mining hardware
  • graphics card mining
  • mining software, pools and wallets
  • wallets - digital wallets
  • Alternatives to Standalone Mining: Mining Pool & Cloud Mining
  • Cloud Mining without own hardware
  • How profitable is Bitcoin Mining 2019?
  • How much is it Bitcoin mining ver service?
  • Mine Bitcoin every day within three years
  • What is required for mining?
  • Bitcoin Gold Mining as an alternative to Bitcoin Mining
  • How to leave mine BTG?
  • Bitcoin Mining FAQ
  • Conclusion: High profit opportunities & risks with Bitcoin Mining

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Bitcoin mining: easy way to wealth?

In theory, the concept behind crypto mining is easy to understand. A computer with a certain computing power and suitable mining software are required. If the requirements are met, the user could (theoretically) follow how the so-called mining rig earns him money. That seems to sound like a way that even non-tech-savvy users can easily get rich. Bitcoin mining, which should be profitable, then presents itself as a very complex matter.

With the so-called Bitcoin mining, two goals are pursued:

  • With each block created by mining, new bitcoins are created. It's almost like a central bank printing new money. The maximum number of bitcoins available to the blockchain community is predetermined and will decrease over time.
  • Mining has an important purpose by building trust. Transactions are only confirmed under conditions. A completed block must have been created by sufficient computing power. Each new block means more computing power, which means an increase in trust.

Bitcoin mining 2020 - mine the popular cryptocurrency BTC!

Why is mining so complex?

The complexity of mining largely grows out of the complex blockchain technology. When transactions are carried out with blockchain technology, very complex cryptographic algorithms have to be untied. In theory, the algorithms can be resolved by commercially available computers. There are already numerous smartphone apps that use the computing power of modern mobile devices to mine Bitcoin or other cryptocurrencies. In many cases, this happens without the consent of the smartphone owner and therefore not legally.

The complexity of blockchain technology itself is the main problem. The technology is designed so that as the number of transactions increases, the complexity of the algorithms to be solved increases. In order to make real money with Bitcoin Mining under these circumstances, some expensive investments in the form of special Bitcoin Mining Calculators are likely to come to the miner.

In addition, Bitcoin and other cryptocurrencies are among those investment investments where the point for a return of capital (Return of Investment / ROI) depends on other complex variables. With Proof of Work (PoW) and Proof of Stake (PoS) there are two different ways to get bitcoins. But the impact on ROI is minimal. Other factors have a much stronger influence on performance and thus on earnings. These do not change. As is well known, the number of available bitcoins is limited. If there is increased demand, this will drive up prices. The principle of supply and demand ensures that the run on the virtual currencies does not ebb.

Anyone who invests in Bitcoin is betting on a further increase in prices so that the capital invested quickly pays off again. It is simply imagined what it is ultimately not.

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Is Bitcoin Mining Profitable RIGHT NOW In Early 2020?

Requirement for Bitcoin Mining

An essential prerequisite for being able to start mining is understanding the general context. In order to express the relationships very simply, an equally simplified calculation could be made. The main purpose of mining cryptocurrencies is to convert the electricity used into money. The actual relationships around mining are of course much more complex.

It can be safely assumed that resolving the algorithms requires considerable computing power. A large amount of electricity is required for the computing power. To ensure the profitability of mining under these conditions, further factors must be taken into account:

  • Hash rate as high as possible per second
  • Low electricity prices
  • As low as possible Power consumption per bitcoin mined

Bitcoin mining is all about the right cost-benefit ratio. Expenditures for electricity play a major role in this calculation.

In this context, it is certainly true that a miner plays a key role in determining his financial success. But even a miner who could live with minimal returns will have to ask himself at some point about the economic sense of his investment. Due to the ever more complicated and more complex computing processes, he gets to the point where he is far from cost-covering mining. He must also put money into special Bitcoin Mining Hardware because Bitcoin Mining no longer works with a standard computer due to the increased demands on computing power.

Bitcoin mining 2020 - mine the popular cryptocurrency BTC!

Bitcoin Mining Hardware : ASICs

Mining, which aims to maximize profits, works primarily by maximizing computing power. This enables hardware with specialization to resolve the algorithms. ASIC special chips are integrated in it, which means that the function after production is specified and cannot be changed. The specification of the ASICs also makes them ideal for Bitcoin mining, which provide the computing power required for high levels of difficulty. Bitcoin ASICs are used in mining farms that have thermal regulation and access to cheap electricity.

The Bitcoin mining hardware

Profitable mining hardware must have have a high hash rate and efficiency. A good efficiency of the miner is shown by the low energy costs per hash. Efficient Bitcoin miners currently include:

  • ZIG Miner ZIPPRO13 (hashrate 16 gigahash / second, power consumption 1500 watts)
  • AntMiner S17 (hashrate 56 terahash / second, power consumption 2520 Watts)
  • Whatsminer M21S (hashrate 56 terahash / second, power consumption 3360 watts)

The prices of these modern Bitcoin miners range between 3,000 and 4,250 euros. Since ASICs are a niche product, mass production is not planned, so that hardware purchases are more expensive than comparable general-purpose computing devices. It remains to be seen whether the ASIC chips developed and produced today will meet the increasing demands in the future. The increasingly complex algorithms could prevent effective use. The more powerful a miner is, the higher the costs per device (acquisition and ongoing operation).

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Bitcoin mining 2020 - mine the popular cryptocurrency BTC!

Graphics card mining

Expensive ASIC hardware and the strong focus on current mining of Bitcoin are certainly one reason why mining with graphics cards still plays a role. The ASIC miners only allow certain cryptocurrencies to be mined. Some cryptos change their algorithm to prevent ASIC mining. An advantage of the ASICs is the higher hash performance compared to graphics cards and therefore they are currently standard for mining Bitcoin. With a graphics card, it is possible to mine other coins such as Monero or Litecoin. If it is no longer needed, gamers will certainly find it as grateful buyers.

Mining Software, Pools and Wallets

Compared to Bitcoin mining hardware, Bitcoin is used Mining software made relatively low demands. Nevertheless, she is responsible for a number of important tasks, such as monitoring the entire mining process. It not only has to check the hash rate and the mining speeds.

The computer's fan and temperature control are also part of the monitoring tasks. Another function of the software is to ensure a connection between the miner and the blockchain (miner wants to mine alone) and a mining pool (miner wants to mine together).

Bitcoin mining 2020 - mine the popular cryptocurrency BTC!

Wallets - digital wallets

If the software is installed, it must be connected to a so-called wallet. There, mined or other acquired bitcoins and other cryptocurrencies are stored and managed in this digital wallet.

Only the digital keys of the crypto units are stored in the wallet. These are the prerequisites for accessing bitcoins. The wallet keys are available in a private and a public variant. The public one receives the bitcoins, the private one is used for payments, for example.

The wallets are offered in different options, including:

  • Desktop Wallets
  • Browser wallets
  • Mobile app wallet
  • Hardware wallets

Which wallet makes the most sense depends on the respective requirements, If the main purpose of the wallet is to quickly transfer Bitcoin amounts, a smartphone app wallet is the most sensible variant. Hardware wallets can serve a different purpose. They are not always connected to the Internet and are very suitable for back-ups.

The type of use is one page. It has to take into account aspects such as anonymity, ease of use, speed and security. It is of interest here that private wallet keys can be managed and saved locally. This possibility does not exist with all providers. The keys are stored here on external servers.

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Alternatives to standalone mining: mining pool & cloud mining

Since the prospects of higher profits for solo miners have deteriorated due to reasons such as increased level of difficulty (complexity of the algorithm) and energy costs, connecting to a Bitcoin mining pool is an alternative. Your own device capacity is linked to the capacity of other miners. Combining them in one pool increases the chances of generating more Bitcoin blocks or in the cryptocurrency of your choice.

The miners involved receive the earnings proportionately, depending on the computing capacity contributed. The underlying method decides how the calculation of the proportional reward is carried out in detail. In order to be able to participate in a Bitcoin mining pool, the miner must log in to the pool of his choice and connect his computer to the pool using suitable software.

Important: Only sufficiently large pools can make a significant contribution to overall mining. The pro rata earnings will be correspondingly lower. Mining in smaller pools will not achieve such rewards as is possible with the large pools.

Cloud mining without your own hardware

Cloud mining means mining Bitcoin without the use of own mining hardware. The computing capacity is rented or purchased from a cloud mining provider. The computing power (hash per second or tera hash per second) is guaranteed by contract. The rental period is usually at least one year. With higher hash values, higher yields are achieved. The cost is a one-time payment for the contract. The ROI is dependent on the rented computing power,

For the cloud mining business model, there are certain dangers from the providers in addition to the general risks of the market. A fraudster collects the contract fees without having mining hardware and generating bitcoins. The contributions received by new customers are used to distribute profits to existing customers. New customers are attracted with particularly favorable conditions so that the system works for a while. The rapid ball system collapses at some point.

Note: The (serious) cloud mining basically has the same difficulties as the mining pool. There is no guarantee for an ROI of the investment during the contractually defined period. As rented or provided computing power does not change and the requirements can change, a contract can no longer be profitable at the end of the term. In this case, the operators can suspend the contract. This means a loss for the miner because the money invested is gone.

How profitable is Bitcoin Mining 2019?

Profitability is an important question for many miners, if not the all-important question. When the Bitcoin value plummeted in the first months of 2018, many miners were forced to quit or at least forced to temporarily drop their mining activities. A sharply falling Bitcoin price with rising electricity costs could not be compensated. Bitcoin grew rapidly in value in the months after April 2019.

Whether this will continue over a longer period of time cannot be predicted. BTC Mining has undoubtedly given some people greater fortunes over the years. Conversely, this does not mean that every mining starter has the desired success with it. A multitude of earnings reports came from those investors who carefully planned their mining operations using cheap electricity and the most efficient mining hardware.

received in late 2017 when the Bitcoin price was heading toward $ 20,000 one miner as a reward for each confirmed block of 12.5 Bitcoin. That was equivalent to a value of $ 240,000. In August 2019, the price per Bitcoin will hit $ 10,000 or more. The value of the reward of 12.5 Bitcoin is in the range of $ 125,000.

What is the Bitcoin mining earnings?

The possible earnings can be simple and be determined without obligation using a Bitcoin mining calculator. The following parameters are relevant for the profitability of Bitcoin Mining:

  • Hashing computing power in hash in seconds (H / s)
  • Degree of difficulty
  • Power consumption in watts
  • Electricity costs per kilowatt / hour
  • Mining pool fee

You can generally say what earnings a miner can expect in the future. The aforementioned parameters determine profitability.

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Mine Bitcoin every day within three years

Who yours If you want to buy your own Bitcoin miner and profitably participate in the mining of digital raw materials under certain conditions (electricity price), you have to calculate between 2,000 and 4,000 euros for a setup. The mining devices are available on technology portals, on Amazon or eBay.

Assuming there is an Antminer S9 with 14 TH / s hash rate available, mining a Bitcoin takes about three years. With a higher hash rate, mining a block is of course faster.

If you want to mine yourself and want to generate a block every day, you have to invest around 15,000 euros. If the goal is to find a block every day, the hardware must be able to provide 178,344.27 TH / s of computing power. An Antminer S13 Pro has a performance of around 50 TH / s performance at a price of around 4,000 euros. In order for the miner to be very likely to find the block, he would have to buy more than 3,500 Antminer S17 Pro. The power consumption of one of these miners is 1975 watts.

The more of the bitcoins that are ultimately available, the more difficult mining becomes. This increases the requirements for Bitcoin mining hardware and Bitcoin mining software. Not to be forgotten in a earnings calculation are the higher energy costs and the growing competition between mining participants.

Tip: With a Bitcoin mining calculator from Cryptocompare, CoinWarz or Whattomine, users can calculate themselves whether they can generate profits by mining Bitcoin under their conditions.

What is required for mining?

  • A Bitcoin wallet
  • A powerful and efficient miner
  • A reliable internet connection (use an Ethernet cable to connect)
  • Stable uninterruptible power supply
  • A good location for miners who get hot and a lot of noise generate
  • a cooling system, e.g. fans or air conditioning
  • access to a mining pool (recommendation)
  • an account of an exchange if mined crypto coins are sold
  • Users have to be convinced of mining, enthusiastic about technology and learn be able.

Note: Miners and blockchain operators will secure the reward for the new creation of bitcoins in the future by billing transaction fees. As the volume of Bitcoin transactions increases, transaction fees also increase. In the opposite direction, however, this also works.

Bitcoin Gold Mining as an alternative to Bitcoin Mining

Bitcoin Gold (BTG) is the second spin-off after Bitcoin Cash (BTH) original Bitcoin (BTC) and on the market since October 2017. The digital currency is far from the importance of a BTC or BTH. A coin currently costs just around $ 15. In terms of market capitalization, BTG is ranked 30th out of the top 100 cryptos.

The real advantage for miners is that blocks are generated by GPU mining and not by expensive ASIC mining. In addition, the same hardware can be used to mine additional crypto coins with an equihash orientation. Suitable hardware and software is required for BTG mining. Cloud mining is an alternative. Then there is no need to buy mining hardware or provide a suitable location for BTG mining.

How can you mine BTG?

Even if you can mine your own BTG blocks Should be possible at home thanks to the Equihash algorithm. According to experts, profitable mining requires investment in a multi-GPU rig and connection to a mining pool. This is the only way to quickly mine new blocks, which quickly brings a corresponding return. GPUs from the Nvidia GTX series are recommended for BTG mining. Six GPUs are recommended per rig. Other requirements are minimg software, stable internet connection and a Bitcoin Gold Wallet (recommended here is the official Bitcoin Gold Core Wallet).

The power consumption of graphics cards ranges between 100 and more than 200 watts. If additional rigs are used, power consumption and electricity costs increase accordingly. In addition, the miner must take money for adequate cooling and, if necessary, for noise suppression or noise protection. Anyone using cloud mining saves all costs in this regard. Cloud mining only requires the conclusion of a mining contract with a suitable cloud mining provider and a suitable wallet.

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Bitcoin Mining FAQ

How long does it take to mine a bitcoin?

The time for generating a bitcoin varies and depends on the level of mining difficulty and the hardware hashrate used. How long a Bitcoin ASIC miner takes to mine a Bitcoin can be calculated. A single miner should take around three years to mine Bitcoin, while a larger mining farm will generate one Bitcoin a day. The hash rate for the amount of Bitcoin per day and miner must be entered in the corresponding online mining calculator. The mining costs can be determined by including further data such as electricity consumption and electricity costs or pool fees in the calculation.

Is it legally legal to mine Bitcoin?

There are currently no laws that declare Bitcoin trading or mining illegal. However, attempts at regulation by national financial regulators are currently increasing. From 2020, German crypto exchanges must secure BaFin approval. Commercialized Bitcoin earnings are not exempt from tax. Since they are not subject to capital gains tax, they must be taxed like other income under the income tax return.

What are the best countries to mine Bitcoin?

Mining digital coins like Bitcoin require a lot of energy. The cost of electricity is more than 50 percent of the total cost. Mining focuses on countries with low electricity costs. Examples are countries like Estonia, Norway, Venezuela or Ukraine. In Germany or South Korea, energy costs have been rising for years, so the number of miners is decreasing.

Conclusion: High profit opportunities & risks with Bitcoin Mining

There are many known and possibly even more unknown possibilities in connection with blockchain technology. In terms of crypto mining, there are more questions than answers. Anyone who runs mining privately and on the side and therefore without any special effort is faced with numerous imponderables.

The miner is subject to the hope that one generated by him will retain its value and, in the best case, increase it. He assumes that his computing power will ensure regular, constant profits. His biggest bet is that the running costs (electricity costs) will be lower than the profits made.

The Bitcoin market is subject to strong fluctuations. Supply and demand lead to crazy prices. The value of a cryptocurrency can be 10,000 euros today and have halved a short time later.

Basically, with a limited good like Bitcoin and the growing demands on production, constant profits cannot be assumed. From today's perspective, it can be said that mining will not generate extreme profits in the near future. Many investors and beginners certainly hope for attractive Bitcoin mining earnings. Far higher returns with small capital investments can be achieved with the trading of cryptocurrencies!

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