It costs $40,000 to mine a Bitcoin.
Miners use high-powered computers to convert energy into Bitcoin. When combining the proper hardware with low-cost power, miners earn Bitcoin for a much lower cost than the market price. However, the average electricity rate in the United States is 23¢/kWh, which makes it too expensive to mine profitably at home. Blockware developed top-tier data centers across the United States to provide miners access to low-cost power. The average Blockware client pays 7.8¢/kWh to mine Bitcoin. Our full-stack, mining-as-a-service offering allows everyone to start mining Bitcoin.
Bitcoin Miners Sold
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Mining vs. Buying: The Data Speaks
When looking at Bitcoin’s long-term potential, mining often proves to be the superior investment. A Blockware Intelligence study revealed that a miner who purchased an S19 ASIC in May 2020 accumulated 0.669 BTC by January 2022. Meanwhile, an investor who spent the same amount on Bitcoin and covered the miner’s electricity costs via dollar-cost averaging only accumulated 0.593 BTC.
This difference of 0.076 BTC, valued at approximately $5,200 today, highlights mining's advantage. The miner's holdings surpassed the spot buyer's after just 609 days—without accounting for the potential resale value of the mining hardware.
- Greater Accumulation: Mining gradually builds your Bitcoin reserves, often outpacing spot market purchases, especially over time.
- Resale Value: High-performance ASIC miners, like the Antminer S21 Pro, not only generate Bitcoin but also retain significant resale value.
- Strategic Timing: Initiating mining before major events like Bitcoin halvings can be particularly beneficial as these events tend to drive up Bitcoin’s price.
- Professional Setup and Maintenance: Hosting services handle everything, ensuring your equipment runs efficiently.
- Optimal Locations: Hosting in regions with low electricity costs reduces operational expenses.
- Scalability: Easily scale your mining operations without logistical hassles.
- High Initial Setup Costs: Direct mining requires a significant upfront investment in hardware and infrastructure.
- Operational Complexity: Managing your own setup demands technical expertise and time.
- Energy and Location Dependencies: Without low-cost electricity, direct mining may struggle to remain profitable.
