Bitcoin mining serves 3 purposes:
- Processing Bitcoin Transactions
- Securing the Bitcoin Network
- Issuing New Bitcoin (BTC)
Bitcoin miners use high-powered, specific computers and electricity to solve complicated math problems that verify transactions on the Bitcoin blockchain (i.e. distributed bank ledger).
This Bitcoin mining process is called "Proof of Work". This not only keeps the network secure, but also rewards Bitcoin miners with a predetermined amount of Bitcoin for operating a Bitcoin mining machine. This reward of newly minted Bitcoin on the blockchain is called a “block reward”.
The ROI (return on investment) for Bitcoin mining consists of three prices:
- The mining machines (specialized computers)
- The electricity cost to power the mining machines
- The price of the Bitcoin mined
The amount of Bitcoin that a miner will receive in block rewards is mainly based on the total computing power (hash rate) that a mining machine provides relative to all other miners mining!
Bitcoin mining machines are specialized computers optimized for ONE task... mining Bitcoin!
Bitcoin miners have historically earned more Bitcoin (after their costs -- mining machines & electricity) than they would have if they simply bought Bitcoin.
On December 25, 2021 the price was $50,000 per Bitcoin. You could have bought 0.14 BTC for $7,000. Or you could have bought a Bitcoin Miner in a world-class mining facility and made an average of 0.012 BTC/mo from mining for 36 months total for an estimated ~0.432 BTC.
If Bitcoin is valued at $100,000 in the near future, 0.012 BTC will equal $1,200 per month!
Bitcoin Mining = Passive Income
Bitcoin mining gets the best ROI at scale (e.g. mining in a large facility). You can buy one (or multiple) Bitcoin miners in a world-class mining facility (with a 36-month contract). Three years is the average lifespan for these specialized mining computers.
- You bought a Bitcoin miner on September 1, 2021. We co-host your miner in our mining facility.
- On October 1, 2021, the price of Bitcoin is valued at $48,000 so for your 0.012 BTC mined in September, we would send you a payment for $576 ($48,000 x 0.012 BTC).
- On November 1, 2021, the price of Bitcoin is valued at $63,000 so for your 0.012 BTC mined in October, we would send you a payment for $756 ($63,000 x 0.012 BTC).
- You will earn an estimated ~0.012 BTC monthly for the 36-month life of the mining machine!