Mining Bitcoin is the original strategy for generating Bitcoin. In the early days, it was possible to mine hundreds of Bitcoin on any laptop. But since 2014, mining Bitcoin has required specialized ASIC hardware which today costs upwards of $10,000. Furthermore, the cost of electricity is the most important factor in the profitability of Bitcoin mining. Today, mining Bitcoin is only profitable in regions with below-average electricity prices.
Bitcoin mining is a high-risk game of high capital costs and long payoff periods. A crash in the price of Bitcoin price may make miners unprofitable to run for years at a time, by which time they become obsolete.
A much simpler way to earn Bitcoin is to mine other cryptocurrencies and get paid in Bitcoin. Nicehash
offers a user-friendly tool for mining cryptocurrencies on a graphics card and getting paid for it in Bitcoin. Just about any gaming computer with a graphics card can be used f0r mining crypto, even if the return is low. For older graphics cards, the cost of electricity can exceed the value of the Bitcoin you earn, but this may be irrelevant if you need to heat your home. It’s also an anonymous and safe way to earn Bitcoin.
Once you are ready to scale, you can build custom rigs
dedicated to crypto mining. Using a service like Celsius Network
, you can take out a loan against your Bitcoin in USD to pay for mining equipment, and get 100% of the Bitcoin you loaned when you pay back your loan.