Bitcoin, the very first cryptocurrency, is still very popular these days. The fact of the matter is that this crypto has become a valuable digital asset. Investors, companies, and individuals alike are all accustomed to the Bitcoin trade by now.
Even though the crypto market is still highly unregulated and extremely volatile, people’s interest in Bitcoin and cryptos, in general, doesn’t seem to be faltering even a bit. That’s why Bitcoin mining is still one of the most popular ways of obtaining this currency even today. With that in mind, here are a few things you need to know about mining Bitcoins in 2021.
Get yourself a wallet
Bitcoin is a digital currency. You can’t put it in your pocket, unfortunately, but you do have to store it somewhere. This is what Bitcoin wallets are for. They are basically digital wallets designed to safely store your Bitcoins.
The way it works is that your Bitcoins are kept within the blockchain. You get your own unique address with matching private and public keys. Digital wallets, however, require more security so make sure your wallet is safe from anyone who’d want to take your assets from you.
Obtain the proper hardware
As you may already know by now, mining Bitcoins isn’t as simple as it may sound. You need specialized hardware that will help you make the most out of your mining efforts. Fortunately, there are plenty of such rigs available for your convenience.
So, make sure you obtain the best Bitcoin mining hardware you can get your hands on. The key is to opt for a computer that’s efficient at mining while not consuming as much power as mining hardware normally does.
Consider the rewards
The price of Bitcoin is very unstable. One minute its value can skyrocket, and the next, it can plummet. That’s why it’s important to consider your rewards. Mining Bitcoins is a complex process. For successfully mining one block, you get rewarded with a certain amount of Bitcoins.
In the beginning, that reward was 50 Bitcoins, but the reward is halved every four years. Last year, there was another Bitcoin halving, which made the reward only 6.25 Bitcoins. The unfortunate fact is that the reward is divided among all the participants.
Join a mining pool
As mentioned before, the mining reward is divided, and the reward goes to the group that solves the block first. In other words, you don’t stand a chance of winning the reward alone. That’s why you should join a mining pool.
The purpose of such pools is for a group of people to come together and combine their resources so that they will be the first ones to solve the block. Just keep in mind that there’s usually an entry fee to join such a pool.
Consider the power consumption
Mining Bitcoins is quite demanding in terms of consuming electrical power. Mining hardware can greatly reduce the power draw, but it all depends on the price of electricity. Therefore, if electricity is a bit too expensive where you live, the costs of power consumption can easily exceed the price of your mining rewards. That’s why you should be careful when balancing mining and power consumption.
Mining Bitcoins is still a popular endeavor. Although there are only 21 million Bitcoins in existence and 18,638 million have already been mined. It’s estimated that it will take 100 years before the last Bitcoin is exhausted. So, mine away and enjoy your rewards but make sure you take every factor into consideration and develop a solid strategy before you proceed.