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13 May 2022
Is Bitcoin mining profitable in 2022?

There are several ways to make a profit with cryptocurrency. The first and simplest is trading – buy cheap and sell high. Secondly, you can participate in the blockchain system by mining coins on your own.

Within the network of digital finance transactions there is a competitive process that verifies and adds new transactions to the blockchain. Completing the process of verifying new blocks of transactions is called mining. People who confirm transactions and store them in the blockchain are called miners.

Miners race to be the first to solve complex mathematical problems. Once they solve the equation, which validates the transaction, they receive coins as a reward for completing blocks of verified transactions, which are added to the blockchain. In addition, miners receive commission fees for validating blockchain transactions.

A block reward equals 6,25 BTC. The amount of the reward halves every four years. This process is called Bitcoin halving. In 2024, the next Bitcoin halving is expected to take place. The amount of the reward will decrease down to 3,125 BTC.

Before now, it used to be easy to do a better job of mining with a laptop with a high-performance GPU. But today it requires power-hungry expensive cryptocurrency hardware. That’s why it is only the rich people as well as corporate entities and municipalities that can afford large and expensive specialized bitcoin mining hardware in their mines with lots of high-powered computers. 

To successfully mine Bitcoin 213 000 000 000 000 000 000 000 000 000 000 transactions per second should be processed

Let us see what bitcoin’s hash rate is. Hash rate refers to the amount of computing and process power being contributed to the network through crypto mining. The higher the pool hash rate is, the better is the chance to solve the equation and the more frequently you get rewards.

Bitcoin’s hash rate continuously increases. Bitcoin’s mining difficulty reached a lifetime high after a 5.56% increase in April 2022 up to 213,10 exahash per second (EH/s). This indicates that Bitcoin’s difficulty is nearing 213,10 quintillion transactions per second. Quintillion is a number equal to 1 followed by 30 zeros.

Despite this, you could still run your own mining farm after purchasing the mining hardware with a lower hash rate. You will not get rewarded 6,25 BTC daily but you will likely earn a certain crypto currency income.

Nowadays, typical business mining need significant capital investment in processing hardware equipment and tremendous amount of power to run computations

In order to successfully mine Bitcoin, you’ll need specialized Bitcoin mining hardware called application-specific integrated circuit devices, or ASICs. Using ASICs for home-based mining would be a bad idea since the machines are very power hungry, and they make a lot of noise. It could irritate your neighbors and ruin your line power wiring.

Let us calculate how much revenue you can earn mining Bitcoin in 2022 taking into consideration costs for machines and infrastructure, current hash rate and an energy cost of $0,075 per kWh (reference date – end of April 2022).

Mining equipmentPriceProfit (12 months)Energy cost (12 months)Net income (12 months)Payback period
BITMAIN AntMiner T17$2 663$2 424$1 428$99632 months
BITMAIN AntMiner S19 Pro$11 885$6 660$2 100$4 56031 month
BITMAIN AntMiner T17e$3 756$3 156$1 884$1 27235 months
Canaan AvalonMiner 1066$1 874$3 024$2 100$92424 months
BITMAIN AntMiner S19$8 332$5 748$2 100$3 64827 months

Add startup costs for setting-up a new business and other common business expenses (taxes, all dues or fees of any kind).

There is little question that entry-level individuals can hardly profit from cryptocurrency typical mining. Moreover, mining faces intense criticism due to environmental concerns. The Solana co-founder said that Bitcoin can lose adoption if it fails to adopt the Proof-of-stake (PoS) model.

How less energy Proof-of-Stake (PoS) offers a solution to crypto industry making things simple for entry-level investors

Proof-of-Stake consensus mechanism was developed in 2012. Participants are required to spend money and dedicate financial resources to the network by keeping coins on a special account. It looks more or less like a bank deposit: you “freeze” coins for a specified time period maintaining the processing capabilities of the blockchain’s network and get your reward. The reward grows in proportion to the invested coins. 

Most experts debate whether the Proof-of-Stake (PoS) mechanism can provide a sustainable future for Bitcoin. But even now there is a great opportunity to mine environmentally friendly crypto currency by purchasing a BTC stable coin Bitcoin Additional (BTCa), and investing it in masternodes.  The BTCa coin is backed by Bitcoin at a ratio of 1:1. You can exchange Bitcoin Additional (BTCa) to Bitcoin (BTC) with no losses.

Let us compare the profitability of investments in ASICs equipment with returns of environmentally friendly mining. Reference value of BTCa (BTC) is $45 000, ROI = 83% and expected value of BTC at the end of investment term = $200 000.

Mining equipmentPriceTypical mining net income  (12 months)Environmentally friendly mining net income  (12 months)
Canaan AvalonMiner 1066$1 874$924$13 482
BITMAIN AntMiner T17$2 663$996$19 260
BITMAIN AntMiner T17e$3 756$1 272$26 964
BITMAIN AntMiner S19$8 332$3 648$59 706
BITMAIN AntMiner S19 Pro$11 885$4 560$84 744

Masternode eco-friendly mining requires only two things: a basic laptop and a verified Quan2um Exchange profile. You can calculate how much you expect to profit by means of our Investment Return Calculator on the Bitcoin Additional website.