1. What Is Bitcoin Mining?
Mining is the process of solving complex mathematical problems to validate transactions on the Bitcoin network and receiving new Bitcoin as a reward.
Mining is the core mechanism that maintains Bitcoin's security and decentralization.
2. How Mining Works
Miners use the SHA-256 hash function to find a hash that satisfies specific conditions. This process requires enormous computing power, and approximately one block is produced every 10 minutes.
💡 Current Mining Reward
After the April 2024 halving: 3.125 BTC per block (approximately $215,000)
Next halving (2028): the reward falls to 1.5625 BTC per block
3. Mining Equipment
- CPU mining — Used in Bitcoin's early days; no longer feasible today
- GPU mining — Previously used for Ethereum; inefficient for Bitcoin
- ASIC mining — Bitcoin-specific chips, such as the Antminer S21; described here as the only viable method today
ASIC Miner Prices
4. Mining Profitability
Mining profitability depends heavily on the Bitcoin price, difficulty, and electricity costs. At South Korean electricity prices of approximately $0.10/kWh, making a profit is difficult. Operations are concentrated in places with cheaper electricity, such as China and Kazakhstan.
5. Mining vs. Trading
Mining involves equipment costing millions of won, electricity bills, noise, and heat. Using the same capital for automated AI trading offers a way to seek returns in the Bitcoin market without equipment.
🃏 AI Trading Instead of Mining
Without worrying about equipment purchases, electricity bills, or noise,
AI automatically seeks returns in the Bitcoin market.