Bitcoin Mining To Become One Of The Major Industries
When Satoshi Nakamoto launched and mined BTC on a home computer back in 2009, I wonder if he ever imagined the speed at which the Bitcoin Mining Industry would take off.
In little over a decade, Bitcoin mining has grown from 1 pseudonymous man/group mining on a CPU to a multi-billion dollar industry attracting corporate and sovereign billions.
The growth in the Bitcoin mining industry has been phenomenal, but how much more can it grow?
Bitcoin Miners Make Over $1 Billion In January 2021
Bitcoin miners made $1.09 billion last month, more than double January 2020 earnings, but just short of the all-time high of $1.25 billion set back in December 2017.
The vast majority of the earnings came from the block reward, the 6.25 BTC paid to the miners for every block.
This averages out at 900 bitcoins a day, and at today’s price the aggregate price earned is just over $31 million a day.
However, with Bitcoin surging to an all-time high of just over $42,000 the earnings total for January was just over $1 billion for the miners.
Not bad for a nascent industry, but if we compare it to the oil industry, which made on average $134 billion a month in 2018, we can see the Bitcoin mining industry has a long way to go.
From A CPU To Nasdaq-Listed Bitcoin Miners In 12 Years
Bitcoin mining is a nascent industry, and has a long way to grow to get anywhere near the size of the oil industry.
Back in 2009 when Bitcoin launched, Satoshi mined the first blocks on his home computer, costing a few cents in overheads but with an ROI of zero.
After Bitcoin grew into public awareness, however, we saw independent miners invest in the most powerful GPU mining rigs to compete for the bitcoin block reward.
They’re now slowly being squeezed out by publicly traded companies such as Fidelity Digital, Marathon and Argo Blockchain all investing billions of dollars in the latest ASICs devices in order to mine Bitcoin and win some block reward.
Bitcoin consumes almost as much energy as The Netherlands, and the desire to convert the energy into Bitcoin is speeding up renewable innovation.
And as innovation brings down the price of energy, and the profit margins rise, it will attract more investment from other big industries.
Governments Want a Piece Of The Bitcoin Mining Industry
It’s not only tech companies that are getting involved, we’re also seeing governments opting to turn their resources into mining Bitcoin.
Only yesterday, Bitcoin Maximalist reported on the Ukraine government funding the conversion of one of its nuclear power plants into one of the largest mining data centres.
It’s doubtful we will see the US government officially invest in Bitcoin mining facilities any time soon. However, the level of money invested in publicly traded mining companies shows the willingness of the US government to let the Bitcoin Mining industry flourish.
Bitcoin Mining Will Become One Of The Major Industries
From the days of Satoshi Nakamoto mining Bitcoin on his home computer to multi-billion dollar companies and nation states vying for the block reward, Bitcoin and its mining industry has come a long way.
Will it catch the oil industry? Not for the foreseeable future, but the oil industry will likely get involved in the Bitcoin mining industry.
The amount of money and interest from large companies and energy providers in the Bitcoin mining industry is growing, and the Bitcoin mining companies’ stock prices are rising violently.
Bitcoin Mining is still in its infancy. However, from nothing to a billion dollar a month revenue in little over a decade, we can assume it will continue to grow, and become one of the major industries in the future.
What is the point of Bitcoin?
Bitcoin is a decentralized money. A money that nobody can control or manipulate, and a money that nobody can print and devalue. It’s also not necessary for any third party to verify transactions, so it makes it much faster and cheaper to send value. It’s also money built on the Internet: a society of almost 5 billion people.
How can I earn free Bitcoin?
Nothing is really free, because even when you earn free Bitcoins you’re giving up your time, which is precious. But you can earn free Bitcoins. If you are a gamer, there are games that allow you to win satoshis. Or there’s Carrot – a platform where you can earn free Bitcoin for doing tasks. Or you can save your Bitcoin in an interest bearing account and earn some BTC interest. Be careful with these, and only go with legitimate companies, though. I recommend Blockfi, you can read the review here.
Can you buy less than 1 Bitcoin?
Yes. Every Bitcoin can broken down into 100 million bits. They are known as satoshis, after the pseudonymous creator Satoshi Nakamoto. And some companies will let you buy as little as $1 worth of Bitcoin, which at time of writing is worth about 11,000 satoshis. There are many companies that have a system for dollar cost averaging (DCA). This is a great way to buy Bitcoin, and is known in the space as ‘Stacking Sats’. Basically, what you do is set up small automatic, recurring payments to buy Bitcoin (or sats), and you DCA over time.
Is Bitcoin legal?
As of February 2021, Bitcoin is legal in most countries. The US, UK, Canada, Japan, and all other developed nations it is very much legal. However, the legal status of Bitcoin varies in other jurisdictions.