How Long Does It Take To Get 1 Bitcoin in 2020?
July 15, 2020
How long does it take to mine 1 bitcoin? It’s a question many people ask when transacting for the first time. The short answer is 10 minutes for a Bitcoin transaction to occur, however there are many factors which extend this time. In this article we will explain what contributes to delaying a transaction past ten minutes to over an hour or a day in some cases.
Understanding Crypto Mining
Ever since cryptocurrency was introduced to the world in late 2008, its existence has been baffling yet very intriguing at the same time. Cryptocurrencies like BTC are built on the concept of blockchain; which is known as the most secure method of conducting transactions. In simple words, it is just lines of code that make up a secure block that stores data and is highly encrypted. On the Bitcoin blockchain there will only be 21 million BTC created through a mining process. The processing time for these transactions varies from 10 minutes through to hours or days depending on several factors which we will explain later in this article.
Satoshi Nakamoto (real identity unknown) along with a team of skilled developers created the first cryptocurrency ever known as Bitcoin. Though this was not a new concept in the tech world, it surely was something that caught the attention of the layman. Bitcoin reached its peak in 2017 when one BTC was worth $20,000. This, of course, was the outcome of constant trading and mining.
The creators of Bitcoin created different techniques to obtain this bizarre yet worthwhile entity. One of the most lucrative methods was mining. Bitcoin mining is very similar to any other element mining. It is essentially a process to contribute to the security mechanism of the Bitcoin blockchain by verifying transaction information or data to the collective ledger. This verifying process takes a ton of computing and complex mathematical problem-solving. Miners are successfully awarded Bitcoins for their contribution to the ledger based on their proof-of-work.
Bitcoin mining is no rocket science. It is, however, a little tedious and sometimes the payoff is questionable. When you are BTC mining, you are solving complicated cryptographic challenges with the help of mining hardware. This helps you search for blocks to store data in. Once you do come across a block through mining, new transactions are recorded and verified within that block. You, the discoverer of the block, are rewarded BTC for your effort.
Bitcoin Mining Speed: How Fast Can You Mine One Bitcoin?
Determining the exact time it takes to successfully mine 1 Bitcoin depends on a lot of things like computing power, the type of equipment used, and the competition. However, in the best-case scenario, with the ideal computational power and equipment, it should take about 10 minutes to process 1 BTC. This may not seem like much, but this is for an ideal situation, something that is not possible for a lot of miners.
It takes a large setup nearly 30 days to mine 1 BTC. This setup is not as economical as we think it is, after deducting the electricity cost and the overall hardware and software cost you will be left with 0.1 BTC of profit every month at best. With the majority of setups and the electricity cost and some manpower, it would cost you a total of $73,000 to process 1 Bitcoin every month.
The speed of mining does not only depend on the cost, but it also depends on other hardware and software factors as well. The total speed and cost of mining a Bitcoin relies on the type of device you use like ASIC, GPU or CPUs, the hash rate of the device, the total number of devices you are operating, and the mining pool.
Mining One Bitcoin in the Past vs Mining One Bitcoin Today
Bitcoin mining began soon after the news of the rewarding Bitcoin was released. The initial idea of mining was that anybody with a computer could become a miner. Today, it is arguably something carried out successfully by big mining organizations.
At the time, computers were run on CPUs which could mine you a large number of BTC, maybe a few dollars. The first BTC transaction was two pizzas that were purchased for 10,000 BTC. Today, the same is worth a tremendous amount. Back then, BTC mining was only done by blockchain geeks and true enthusiasts.
Today, we have progressed considerably when it comes to the hardware and software department for Bitcoin mining. Instead of amping up the software and hardware, there is a whole machine created only to solve complex computational algorithms to mine Bitcoins.
ASIC devices are pre-designed and optimized hardware that only compute necessary calculations to create a Bitcoin block. ASICs are the most efficient machines to mine Bitcoin today. However, electricity usage is one of the biggest costs miners have to incur today. Although ASIC units are not economic, they are the best way to mine Bitcoins. Big mining companies have the facilities to purchase these kinds of rigs, but modest miners do not. This makes mining a little tricky if you are expecting to mine from a personal computer.
How Much Does it Cost to Mine 1 Bitcoin?
The cost of mining 1 Bitcoin can vary depending on several factors. The cost mainly boils down to the type of rig used, the country of mining, and the cost of the software. If you are planning on mining, here are the expenses that are worth considering:
- Power costs in the region of mining
- Pool fees
- Hash Rate of the rig
- Crashes and unforeseen hacks
Though it may not seem so, the country where you choose to mine can play a significant role in the overall cost of mining. Many South American and Asian countries have lower power consumption rates. These continents have become a hotspot for Bitcoin miners. Mining 1 Bitcoin in the USA will cost you ten times the cost in Venezuela.
Bitcoin mining is like any other business venture. If you are planning on mining, you have to be ready with a business plan of what it might cost you on the whole. If you want to turn mining into profit, you have to consider account depreciation essentially. Here, you have to calculate the total cost it will take you to set up a mining facility and then the longevity of the equipment. Because your rigs will have to run day and night, they will be subjected to the usual mining wear and tear. You have to calculate how to improve the bottom line for your mining venture by looking out for competition and investing in better hardware.
At the end of the day, you have to break even. Many rig providers give warranties for their devices, but many times these deals go south. So, consider warranties and other incentives to be negligible. It will make more financial sense to invest in cheaper equipment that will be easy to replace.
Should You Get Into Bitcoin Mining?
Bitcoin mining is no rocket science, but it indeed is a little expensive. Before taking this decision, you have to account for all the hardware and software necessities for mining. Sometimes you might require a specific graphic card for your rig that can easily cost you $700. It is possible to establish a less expensive rig, but it all depends on how you operate it.
Back when Bitcoin wasn’t worth much, mining didn’t seem all that interesting. However, now that the rates have skyrocketed, mining has become one of the prime sources for collecting Bitcoin. Bitcoin miners not only earn from the reward, but they also earn from the transaction fee Bitcoin users have to pay while making a Bitcoin transaction. This adds to the revenue earned.
With economic and reliable mining pools and hardware, you can easily earn enough to break even while collecting some revenue on the side. With the development of cloud mining, many people have found it less financially draining to mine.
Is There Anyone Mining Bitcoin Profitably?
Bitcoin miners have been around since 2009. Today, the US alone has nearly 2,625 active miners or nodes, followed by Germany and France with approximately 2022 and 700 nodes respectively. These three countries have the most number of individual miners.
Making a profit from Bitcoin mining can take a lot of time. Considering how volatile the currency is, there is still plenty of scope to become a decent miner in the crypto world. After all, miners contribute to a large part of the fabric Bitcoin is woven in. Without miners, the cryptocurrency can derail.
Bitcoin mining is an investment that can have a payoff, but it can go sideways. It is always advisable to consider all the hard work and patience that will go in mining. Since the noise around BTC and Bitcoin mining has increased over the years, it is highly unlikely that one might be able to earn profits with a single rig and a mining pool. Your likelihood to earn Bitcoin by mining has to do with the hash rate and other mining tools you are using. Mining today requires strategy, planning, and patience. It is a slow but profitable process.
If mining isn’t your interest and trading is, then it may only take 10 minutes to transfer your local currency into Bitcoin. All you need to do is sign up for a Zipmex account to begin trading Bitcoin and other cryptocurrencies.