Bitcoin mining as a hobby can be fun and even profitable if you have cheap electricity and get the best and most efficient Bitcoin mining hardware.
Bitcoin mining is competitive. Until recently, it’s not been ideal for the average person to mine since China’s cheap electricity has allowed it to dominate the mining market. But that has changed since China outlawed mining in their country. Even with this recent change, if you want bitcoins then you are better off buying bitcoins.
|Antminer S19||95.0 TH/s||$10k-12k|
|Antminer S19 Pro||110.0 TH/s||$15k-17k|
|WhatsMiner M30S+||100.0 TH/s||$8,500|
|Antminer T17||42 TH/s||$1,900|
|AvalonMiner 1246||90.0 TH/s||$9,000|
*BuyBitcoinWorldwide.com averages prices from various online sources. Actual prices may vary depending on seller.
Since it’s now impossible to profitably mine Bitcoin with a standard computer or laptop, you’ll need specialized hardware called ASICs.
Here’s what an ASIC miner looks like up close:
Originally, Bitcoin’s creator intended for Bitcoin to be mined on CPUs (like your laptop or desktop computer). However, Bitcoin miners discovered they could get more hashing power from graphic cards. Graphic cards were then surpassed by ASICs (Application Specific Integrated Circuits).
Think of a Bitcoin ASIC as specialized Bitcoin mining computers, Bitcoin mining machines, or “bitcoin generators”.
Nowadays all serious Bitcoin mining is performed on dedicated Bitcoin mining hardware ASICs, usually in thermally-regulated data-centers with low-cost electricity.
There is Bitcoin mining hardware, which mines bitcoins.
Mining is not the fastest way to get bitcoins.
Buying bitcoin with a debit card is the fastest way.
You can use our calculator below to check the mining hardware above. Input your expected electricity price and the hash rate of the miner for an estimate.
The Bitcoin price and the total network hash rate are the two main factors that will affect your profitability.
Our calculator is more accurate than most others because ours assumes the 0.4527678% daily increase in network hash rate. This has been the average daily increase over the past 6 months.
Most other calculators do NOT include this metric which makes mining appear way more profitable than it actually is.
Bitcoin mining is a booming industry, but the Bitcoin price increasing can help make up some of these losses.
The Bitcoin price is increasing at an average of 1.039% per day over the past year. Try messing with the calculator using different prices.
It may seem easy to just spin up a miner.
But you NEED to take a look at just how serious mining is.
The video below offers an inside look at what was one of China’s largest mines.
There are some important factors to look at when determining which Bitcoin mining ASIC to buy:
Hash rate – How many hashes per second can the Bitcoin miner make? More hashes cost more, which is why efficiency is crucial.
Efficiency – You’ll want to buy the most efficient bitcoin mining hardware possible. Right now, this is the Halong Mining Dragonmint T1. Since miners use a large amount of electricity, you want to buy one that converts the most amount of electricity into bitcoins.
Price – How much does the bitcoin miner cost? Cheap mining hardware will mine less bitcoins, which is why efficiency and electricity usage are important. The fastest and more efficient mining hardware is going to cost more.
Don’t try to buy a miner based on only price or only hash rate. The best ASIC miner is the most efficient bitcoin miner. Aim for value.
You can also mine litecoin with Bitcoin mining machines, but it's usually just best to buy litecoin from an exchange.
If you’re a hobby miner who wants to buy a couple rigs for your house, eBay and Amazon both have some decent deals on mining hardware.
Both new and used bitcoin mining rigs and ASICs are available on eBay. One may want to buy used ASIC mining hardware on eBay because you can get better prices.
eBay’s customer protection ensures you’ll get a working product. Other bundled equipment may be included with your purchase depending on the seller.
We recommend purchasing the Dragonmint or the Antminer S9.
You can use a bitcoin mining profitability calculator to determine your estimated cost of return on your mining hardware.
Don't forget to think about your tax obligation on the coins you buy or mine. There are some great tax software suites to make it easy! For instance, we have a great guide on how that software works to pay taxes on Coinbase buys.
Be sure to take electricity costs into account. Most mining hardware appears profitable until electricity costs are accounted for.
The best way to determine actual profitability is to figure out your electricity cost per hash. That is really what will make or break your operation.
While good Bitcoin mining hardware needs to have a high hash rate, efficiency is just as important.
An efficient Bitcoin miner means that you pay less in electricity costs per hash.
To improve your efficiency, there are also companies that will let you order hardware from their warehouse and run the miners for you.
You could also cloud mine bitcoins, though these deals are usually scams. Both options are also a lot less fun than running your hardware!
Bitmain – Bitmain makes the AntMiner line of Bitcoin miners. Bitmain is based in Beijing, China and also operates a mining pool.
MicroBT – MicroBT is another Chinese ASIC miner manufacturer, based out of Shenzhen. Their WhatsMiner series is a major competitor to Bitmain’s AntMiner line.
Canaan – Canaan put the very first commercial Bitcoin ASIC miner to market. In addition to making Bitcoin mining machines, Canaan also has a suite of blockchain tools and business solutions.
In addition to a Bitcoin mining ASIC, you’ll need some other Bitcoin mining equipment:
Power Supply – Bitcoin rigs need special power supplies to funnel and use electricity efficiently.
Cooling Fans – Bitcoin hardware can easily overheat and stop working. Buy a sufficient amount of cooling fans to keep your hardware working.
Backup generators – You may want generators as a backup in case your main source of electricity goes down.
You can find Bitcoin mining equipment for sale on eBay.
It’s still technically possible to mine bitcoins without dedicated mining hardware.
However, you’ll earn less than one penny per month. Mining bitcoins on your computer will do more damage to your computer and won’t earn a profit.
So, it’s not worth it unless you’re just interested to see how the mining process works. You’re best bet is to buy dedicated hardware like the Antminer S19.
Bitcoin is based on blockchain technology, a decentralized platform which takes power away from a central authority and gives it to the average person. Sensitive information is stored on the blockchain rather than large data centers, and is cryptographically secured. A vast amount of people, known as miners, all work together to validate the network, instead of just one person or government.
In the beginning, CPUs were used to solve cryptographic hash functions, until miners discovered that GPUs were far better equipped for mining. As block difficulty increased, miners turned primarily to GPUs.
Some GPUs were made solely for mining Bitcoin.
Eventually, technology was developed solely for mining, known as ASICs, or Application Specific Integrated Circuits. Their hashrates are significantly higher than anything GPUs are capable of.
With stellar performance comes a high price tag – the best ASIC chips will run you a few thousand dollars each. Upon creation, Bitcoin blocks were confirmed by the average person using their desktop – once ASICs hit the market, things changed.
ASICs rendered GPUs useless. ASIC developers, including Bitmain, granted early access to large mining cartels rather than the average person.
Thousands of ASICs all mine simultaneously in a mining farm (large warehouse). Evidently, most people can’t afford even one or two of ASICs so thousands of them would be out of the question.
When ASICs hit the market, the blockchain’s validation process became more centralized as more and more hashing power was consolidated into a handful of mining companies, rather than being spread out amongst many miners. Unfortunately, Bitcoin is no longer as decentralized as it was once intended to be.
Bitmain’s AntMiner S7 proved so popular since its release in mid-2015 that it reached 19 batches of production.
Now, Bitmain has released a new series: the AntMiner S19.
The S19 is the latest and greatest Bitcoin ASIC miner from Bitmain. It comes in three models: the Antminer T19, Antminer S19, and Antminer S19 Pro.
The T19 puts out 84 TH/s, the S19 95 TH/s, while the S19 Pro boasts up to 110 TH/s of hashing power.
Prices start at $2,118 for the T19 and run to $3,769 for the S19 Pro.
The S19 Antminers require 3250W of power, ± 5%.
The power supply units (PSUs) are included with the miners themselves, meaning you won’t need a separate piece of hardware.
The S19 draws an average of 3250 Watts at a room temperature of 25^C / 77^F. Naturally, the hotter the environment, the more energy the fan(s) will consume to cool the unit.
Setting up an S19 via the MinerLink GUI is a simple process, requiring only your mining pool credentials to begin mining.
The units will automatically begin hashing upon powering up, which can be helpful in the event of power failure. S19 connectivity is via Ethernet only.
The S19 series miners operate best within a temperature range of 5-40 degrees Celsius (40-105 Fahrenheit).
Keeping the room in which they’re placed cool and dry will extend the life of these miners. A dry basement is an ideal location.
The S19 is currently out of stock due to the high demand for this latest generation of ASIC miners. You can get a used one from anywhere from $6,000 to $8,500.
As new models are released and commercial miners upgrade, you can expect the price of the S19 series to drop further.
Mining difficulty on the Bitcoin network has been steadily rising at a rate of almost 0.5% per day. Combine that with the fact that the block reward was halved in May 2020, and you can see why there’s fierce competition between miners to successfully validate blocks and remain profitable.
Let’s take a look at how profitable you can expect your mining to be using an AntMiner S19.
We’ll use the most accurate Bitcoin mining calculator out there, which takes into account a number of dynamic variables (such as mining difficulty) to give the best idea of projected returns.
We’re assuming an average household Power Cost of 12c per kWh, a Pool Fee of 2.5% (as charged by AntPool) and a Block Reward of 6.25 BTC per block mined:
As you can see, the S19 is actually a great investment. You’ll almost recoup your entire initial investment in under a year - if paying full price for the S19 from Bitmain - and easily mine your way into the black if you get a discount on the hardware when purchasing.
It might make more sense to invest money into buying Bitcoin directly or diverting some of your 401k money into a qualified Bitcoin IRA instead of buying mining hardware like the S19.
There is of course the big brother to the S19, the S19 Pro!
The S19 Pro boasts up to 110 TH/s of hashing power.
The S19 Pro power supply is the same as the S19 Pro - 3250W of power, ± 5%.
The S19 Pro generates an average of 81.4 dB while operating.
Setup for the S19 Pro is the same as the S19. MinerLink GUI is easy, requiring only your mining pool credentials.
The units will automatically begin hashing upon powering up, which can be helpful in the event of power failure. S19 Pro connectivity is also via Ethernet only.
Temperature is the same as the S19 - between 5-40 degrees Celsius (40-105 Fahrenheit).
The S19 and S19 Pro can be difficult to purchase since chip supplies are limited for manufacturers. Currently, there are listings for new AntMiner Bitmain S19 Pros for between $15,00 - $25,000. However, used and second-hand models can be had for around $13,000.
Using all the same assumptions that we did for the S19, you can expect a nice profit around $2,000 a year.
The S19 is one of the most advanced mining units on the market today. Bitmain has consistently been at the top of the game when it comes to ASIC miners.
While supply is limited, and the relatively high initial cost may be a deterrent, if you have access to cheap electricity, you really can’t do much better than the S19 series.
The S19 strikes a good balance between power and affordability, while if money is no object the S19 Pro will churn you out an awesome 115 TH/s.
The WhatsMiner M30S+ and M30S++ are Shenzhen-based MicroBT’s answer to the Bitmain AntMiner S19 and S19 Pro. The M30S++ puts out 112TH/s ±5%, pushing it a hair above the S19’s maximum output.
Let’s take a look at how they compares.
Mining is not the fastest way to get bitcoins. Buying Bitcoin is.
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