How To Make Money By Mining Bitcoin


So for this video, I decided to move away from trading bitcoin and talk more about how to make money by mining bitcoin. ( basically using your computer, to run some software and pay you, to process cryptocurrency transactions.

1. Basic Idea of How Mining Bitcoin Works
– Is a non regulated cryptocurrency, that over the past few years has gotten very popular

– and has made a few people millionaires, but has also made a bigger part of them lose a lot of money

– It got to the point that back in 2017 some people borrowed money to buy bitcoin and when it exploded at almost 20k, people thought it would go up higher * but then it crashed, along with a lot of hopes and dreams*
( imagine people playing the literary life, but getting a second mortgage to see if they could win)

But Mining Bitcoin is a little different:
– Since bitcoin is not regulated, people run Software on their computer to help process all the bitcoin transaction which are then created in blockchain
– And in return for this work, those people get paid in bitcoin

Now:
– In 2011, a man reported being able to mine a bitcoin a day, with a computer worth 800 bucks
– So if he saved all those coins for an entire year, today he would be worth around 3.6 Million
– But recent videos of 2017 show, that people were making closer to 35 to 40 Dollars per day

Tip: So obviously the game has changed.

2. The cost Mining bitcoin
– Think about it like renting your computer processing power and getting paid to just keep your computer running
– So the more powerful your hardware the more work you can do and the more money/bitcoin you can make
– However also remember that there are thousands of cryptocurrency, so you can Mine others not just bitcoin.

Actual Cost:
– Software: You can download Nicehash.com ( which is the software you need to run to actually mine bitcoin, and other currencies and its free) – All you’ll need is an address so get a bitcoin wallet and get started
– Standard GPU: that can be $400 -5k
– Or an Asic Dedicated Bitcoin mining hardware: 1k and up
( the more processing power you are, the more you can make, but also the more expensive it gets)

– And as bitcoin keeps fluctuating, the amount of money you get will also fluctuate ( but your electricity bill will still be the same)

– Electricity cost

3. The profits of mining bitcoin
– In 2015, some bitcoin farms got up to 100 bitcoins per day: but their electricity bill was around 80k per month
– And some small timers up 1 per day
– However today in 2020, obviously the computing power needed is a lot more different and a lot more difficult

Here are my Number:

4. My final thoughts
– Right now there are 18.5 million bitcoin in the market with a cap of 21 million that should be reached by 2140
– When that happens if it happens ( bitcoin will have to either change the way it operates)
– Or give the minner another incentive by collecting fees

– But either way, the speculation of bitcoin has not changed, and there are 1000 cryptocurrencies, will it overtake the dollar, I think regulation is needed with everything.

* PRO TIP*
INFORMATION IS EVERYTHING

Good video to Explain: https://www.youtube.com/watch?v=Q5hfr5poLl0
Profit calculator: https://www.nicehash.com/profitability-calculator
Great Article: https://www.investopedia.com/tech/what-happens-bitcoin-after-21-million-mined/

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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