Mining Bitcoin is a core part of the Bitcoin ecosystem and something that formed a large part of its initial growth when it was first created. However, the state of Bitcoin has changed from 2021 onwards, and mining is not exactly the same thing that it used to be.
Is Mining Still An Option?
Mining will always be a central component of Bitcoin unless the entire system behind it changes, and this means that it will generally always be there. Even if the exact method of mining somehow changes, you will still be able to generate coins by offering the computing power the system needs.
However, mining is not as easy for an individual with a home computer anymore. After the major cryptocurrency boom, Bitcoin and other related crypto types became more well-known, and startup companies scrambled to make use of it.
Since mining is the easiest way to get Bitcoin “for free,” individual mining has mostly been replaced with mining farms. These are groups that have plenty of pre-made PCs, who allow others to pay them in return for taking part in the mining using those rigs remotely.
Can I Mine on my Own?
Mining is still completely possible with your own home rig, just far less efficient. Turning a profit with mining alone has become harder, and you often still need a PC that is purpose-built to mine if you want to rake in coins. For the average office computer, it is not really a profitable option anymore.
This does not mean that you should avoid it at all costs, but it requires more preparation to do correctly and can take longer. For a lot of people, working with those mining farms is cheaper, easier, and provides better rewards.
Mining Farms (or Cloud Mining)
This cloud mining is important for a lot of people because it reduces the barrier to entry. If you do not have an especially powerful computer, you are able to purchase computer power from a mining farm and take a cut of the profits that they earn.
These are very ‘fire and forget’ methods of mining. If you wanted to learn anything specific, like learn how to mine Bitcoin in Australia or how to build your own mining machine, then you will not learn it through cloud mining. You simply pay and let the profits from the mining come in.
This can be a tempting option, but it also runs the risk of you paying just to make a loss. Unless the currency you have earned shoots up in value after you have received some, then you might be paying to mine a currency that is only worth 80% of the amount it cost you.
Personal Mining Pools
Personal mining is the standard, computer-based mining that you might be familiar with. On your own, it can still be very hard to turn a profit. However, some miners create mining pools that link together multiple machines, allowing them to all work together.
This kind of system can be great if you want full control of the machine that you are using to mine but needs more time to set up. Whichever option you choose, though, you should think carefully and never spend more than you can afford to lose.