Can My PC Mine Bitcoin?
By now, I’m sure you’ve heard of Bitcoin. However, before we go into depth about whether your PC is capable of successfully mining Bitcoin, we need to cover what Bitcoin is, what Bitcoin mining means, and how you might be able to go about it.
The exact origins of Bitcoin are a bit fuzzy. Bitcoin was created in 2008, by a person named Satoshi Nakamoto. No one is exactly sure who Nakamoto is or if they’re even still alive. There are theories that Nakamoto is a pseudonym used by a group of developers, because the level of complexity in the code for Bitcoin seemed too great to be done by a single person.
Let’s quickly review what exactly Bitcoin is…
What Is Bitcoin?
In short, Bitcoin is a decentralized digital currency. All Bitcoin transactions are recorded and universally accessible on a public ledger known as the blockchain. This is what separates Bitcoin from previous digital currencies. The blockchain is an open-source method of tracking each Bitcoin transaction, and making those transactions viewable by anyone. This solved the “double-spend” problem that plagued previous attempts to create a digital currency. Bitcoin transactions are supported by a system of computers known as “nodes” or “miners”, that help host, facilitate, and verify each transaction. Bitcoin was created in 2008, and while it initially made headlines, Bitcoin mostly existed as a novelty and remained out of the mainstream. It wasn’t until 2017 when Bitcoin’s price skyrocketed and Bitcoin was thrust into the spotlight. Fast forward, now Bitcoin has successfully revolutionized what currency means, and sparked the cryptocurrency craze. Bitcoin is notorious for being extremely volatile, but for the most part has been defined by dramatic and bullish growth.
Price for 1 Bitcoin
- Dec 2014 – $309.9
- Dec 2015 – $424.96
- Dec 2016 – $952.46
- Dec 2017 – $13,062.15
- Dec 2018 – $3,689.56
- Dec 2019 – $7,251.28
- Dec 2020 – $28,768.84
- March 2021 – $50,811.86
Today, Bitcoin is traded in huge volumes everyday, and is legitimized by platforms like the New York Stock Exchange. While not necessarily accepted as a universal currency, mostly due to its volatility, it’s safe to say that Bitcoin is now ingrained into the mainstream.
What Is Bitcoin Mining?
So, we know that Bitcoin is backed by a system of server hosts known as “nodes” or “miners”. These nodes help facilitate and verify each Bitcoin transaction. This verification process is done by computers solving complicated computing puzzles.
As an incentive for verifying these transactions, miners are rewarded with Bitcoins, this is also how new Bitcoins are introduced into circulation. The more Bitcoins that are introduced into the market the harder it becomes to mine new ones.
The reward for mining new Bitcoin is halved every four years. In the beginning, mining one block would be rewarded with 50 Bitcoins. Most recently, it was halved in 2020 to 6.25 Bitcoins per-block.
However, before you get ready to start claiming your free Bitcoins, there are a few things you should know.
- Before you’re eligible to receive Bitcoin, you need to first verify at least 1Mb of Bitcoin transactions, or one “block”.
- In order to reap the benefits, you also need to be the first miner to solve a given computing puzzle.
Then, and only then will you be rewarded for your hard work; and that’s exactly what it is, hard work.
Can My PC Mine Bitcoin?
In short, probably not.
While perhaps, once upon a time, it was possible for just anyone to mine Bitcoin. Nowadays, mining Bitcoin requires a huge investment of resources.
It’s estimated that Bitcoin mining is responsible for approximately 121.36 terawatt-hours (TWh) of electricity use a year – that’s more than the entire country of Argentina, and it’s expected to continue to increase.
The modern Bitcoin miner is working with top of the line machines that are specifically designed to only mine Bitcoin. These are known as ASIC miners or application-specific integrated circuits, and can be extremely hard to get your hands on due to massive demand.
Often, these ASIC miners are housed in special warehouses to prevent overheating and because they can be extremely loud. There are even professional data centers where you can pay to store your mining machines.
Even IF you manage to get your hands on an ASIC miner, it can still be hard to turn a profit on your own. That’s why many people join mining “pools” where you can join forces with other miners, splitting profits (and energy costs) among the group.
What You’ll Need
So, maybe you’re PC isn’t ready to mine Bitcoin, but if you did want to pursue Bitcoin mining, here are some things to consider:
- Your machine – ASIC miners can be hard to come by due to high demand, and can be extremely expensive.
- Your software – There are a lot of options when it comes to mining software, do your research and figure out which one is right for you.
- Energy consumption – To efficiently and effectively mine Bitcoin requires huge energy draw, and can result in shocking energy bills.
- A Bitcoin wallet – You can’t just store Bitcoin in the bank. Just like Bitcoin is a virtual currency, it’s required to be stored in a secure virtual “wallet”.
- Mining pool – Bitcoin mining is extremely competitive and almost impossible to pull off by yourself, even with an ASIC miner. Consider joining a mining pool to increase your chances of profitability.
- Cost benefit analysis – Mining Bitcoin requires huge initial investment and comes with big energy bills, with no guarantee of returns, so make sure you’re in it for the long haul.
So, to wrap up, if you’re asking “can my PC mine Bitcoin?”, the answer is probably not. Efficiently mining Bitcoin is a huge undertaking and requires a ton of resources. While you might not be able to mine Bitcoin, if you’re serious about going down this path, there are other options. You might consider smaller alternative, or “alt” coins. While still being resource intensive, mining one of these smaller coins is more doable on your own. If you’re looking to add more processing power to your computer, Comp-Pro’s can help pick out which upgrades are right for you.