Bitcoin and Cryptocurrency Mining

Bitcoin and cryptocurrency mining was once considered an easy way to acquire digital assets. But is it still the same today? With technological advancements, increasing competition, and decreasing rewards, Bitcoin and crypto mining may no longer be as profitable as many imagine.

The question of how to mine cryptocurrencies once attracted not only tech enthusiasts but also people looking for alternative ways to earn extra money. The biggest appeal was the ability to “mine” new digital coins directly from a personal computer and generate passive income. However, the days when a regular home computer was enough to mine Bitcoin are long gone. Today, cryptocurrency mining is demanding, expensive, and often unprofitable. In this article, we will explore how Bitcoin and cryptocurrency mining works, why it is becoming less attractive, and what better alternatives exist – especially cryptocurrency investing.

In this article, you will learn:

• Cryptocurrency (Bitcoin) mining: How does it work?
• How exactly does Bitcoin/cryptocurrency mining take place?
• How to start mining cryptocurrencies: What do you need?
• What is the reward for Bitcoin mining?
• Is Bitcoin mining still worth it today?
• Investing in cryptocurrencies
• Why is investing in cryptocurrencies with Fumbi worthwhile?
• What can you invest in?

Cryptocurrency (Bitcoin) mining: How does it work?

Bitcoin is a decentralized currency, meaning it has no central bank or authority managing it. For the Bitcoin network to function, all transactions made by users must be verified and recorded in a public ledger – the blockchain. This transaction verification process is carried out by miners.

Cryptocurrency mining involves validating transactions that are added to the blockchain database. It is essential for blockchains that use the Proof of Work mechanism, such as Bitcoin. Newer blockchains often rely on alternative consensus algorithms like Proof of Stake, which do not require mining.

In Proof of Work mining, transactions are arranged in chronological order to ensure that previous records in the blockchain cannot be altered. For a transaction to be verified and recorded in the system, it must be included in a block that meets strict cryptographic requirements. This process is managed and confirmed by miners within the network, without the involvement of government authorities, ensuring the independence and neutrality of networks like Bitcoin.

How exactly does Bitcoin/cryptocurrency mining take place?

Bitcoin and cryptocurrency mining is more complex than it may seem at first glance. The process begins with miners using powerful computers or specialized devices to solve complex mathematical problems. These problems are cryptographic algorithms that ensure the validity of transactions within the blockchain. In Bitcoin mining, a miner attempts to find the correct hash (a mathematical output) that meets specific conditions. Once this problem is solved, the miner receives a reward in the form of newly generated Bitcoins.

The difficulty of mining increases every 2016 blocks based on the network’s hashrate, which adjusts to maintain an average block time of approximately 10 minutes. This means that while in the early days of Bitcoin, mining was possible even with a standard PC, today, it requires enormous computing power. Mining Bitcoin via a mobile phone or a personal computer is now practically impossible, as the reward is distributed among thousands of miners with much more powerful hardware. This again relates to the previously mentioned hashrate, which has made traditional PCs obsolete for mining. As a result, Bitcoin and cryptocurrency mining is becoming increasingly expensive and technologically demanding.

How to start mining cryptocurrencies: What do you need?

If someone wants to start mining cryptocurrency or Bitcoin today, the first step is a significant investment in specialized equipment. While in the past, it was enough to know how to mine cryptocurrency on a PC or mobile device, today it requires an investment in high-performance ASIC miners (Application-Specific Integrated Circuit) or GPUs.

ASIC Miner

This is the most efficient method for Bitcoin mining. ASIC miners are devices specifically designed for mining a particular cryptocurrency (in Bitcoin’s case, it uses the SHA-256 algorithm). These machines are highly powerful and energy-efficient, but they are also very expensive. Popular models like Bitmain Antminer S19 or MicroBT Whatsminer M30S can achieve extremely high computational power. This is a key requirement if you want to know how to start mining cryptocurrencies.

GPU Miner (Graphics Card Mining)

In the past, Ethereum could also be mined, but it is no longer minable since it switched to Proof-of-Stake several years ago. However, if you want to mine other cryptocurrencies such as Litecoin, GPUs (graphics cards) can be an effective alternative. These devices perform parallel computations necessary for mining many altcoins (cryptocurrencies other than Bitcoin). For mining cryptocurrencies on a PC, multiple graphics cards must be connected in one system, known as a mining rig.

Internet Connection

Another essential step is ensuring a stable and fast internet connection. In Bitcoin or crypto mining, your devices must remain constantly synchronized with the network of other miners.

Cryptocurrency Wallets

Miners need access to a cryptocurrency wallet, where their mined Bitcoin rewards will be deposited. A wallet can be either software-based (an app on a computer or smartphone) or hardware-based, offering a higher level of security.

Mining Pool

Bitcoin mining is highly competitive, and solo mining can be inefficient, especially if you don’t have powerful hardware. That’s why most miners choose to join a mining pool. A mining pool is a group of miners who combine their computational power to mine blocks together. The block reward is then distributed among all pool members according to their share of the total computing power.

Anyone considering mining cryptocurrencies on a PC should be aware that modern computers can no longer compete with specialized mining hardware. The same applies to Bitcoin mining on mobile devices, where a standard smartphone’s computational power is too low to make mining profitable. In fact, Bitcoin mining on mobile devices has never been truly effective.

What is the reward for Bitcoin mining?

The reward for Bitcoin mining changes over time. In the early days, when Bitcoin was relatively new, the reward for each mined block was very high (50 BTC), making mining highly attractive.

In 2024, specifically until April 19, 2024, the reward for mining one block was 6.25 BTC. After this date, on the night of April 19, 2024, to April 20, 2024, the fourth Bitcoin halving took place, reducing the block reward to 3.125 BTC. This amount will remain in effect until approximately mid-April 2028. After this period, the next halving will occur, further reducing the reward to 1.5625 BTC.

Is Bitcoin mining still worth it today?

Based on the previous information, it is clear that in the past, a miner with relatively modest equipment could earn a decent amount of cryptocurrency. However, today, the situation is very different. Bitcoin and cryptocurrency mining has become highly competitive and expensive. If you do not have powerful hardware and do not benefit from low electricity costs, your chances of making a profit are very low—even if you have multiple mining computers.

Nowadays, many miners who want to mine Bitcoin or other cryptocurrencies choose to invest in large-scale mining farms, where multiple devices are combined, and electricity costs are shared to maximize profitability. Therefore, if you do not have significant capital and access to very cheap electricity, cryptocurrency mining is no longer as profitable as it was years ago. In such cases, it is often more beneficial to invest in cryptocurrencies rather than mine them.

Investing in cryptocurrencies

Cryptocurrency mining, such as Bitcoin, is no longer profitable today. However, the market still offers many alternatives where potential returns are much higher. Investing allows individuals to gain exposure to cryptocurrencies without the need to mine or manage high-performance computers.

There are various ways to invest in cryptocurrencies, such as direct purchases through exchanges, using ETFs (Exchange Traded Funds), or investing in index-based cryptocurrency funds.

One of the advantages of investing in cryptocurrencies is that no special equipment is required, and you can choose different strategies depending on your goals. Unlike crypto mining, investing only requires internet access and basic knowledge of the cryptocurrency market. Of course, investing in cryptocurrencies also carries risks, but it can be an attractive alternative for those who don’t want to invest in expensive mining equipment. To learn more about what is worth investing in during 2025, check out our article: “Which Cryptocurrencies to Buy and Invest in 2025”. And if you’re planning to invest in Bitcoin and don’t know where to start, our guide “How to Buy Bitcoin” can help.

Why is investing in cryptocurrencies with Fumbi worthwhile?

Cryptocurrencies have become one of the most exciting and promising investment tools in recent years. However, not everyone who enters the world of cryptocurrencies knows how to navigate it. That’s why Fumbi is here – a Slovak platform that offers an automated and secure way for anyone who wants to invest in cryptocurrencies without dealing with the technical aspects such as selecting the right coins, managing them, or storing them.

We take care of everything for you, providing a simple, transparent, and efficient solution suitable for both beginners and experienced investors.

Why invest in cryptocurrencies with Fumbi?

• Buy and invest from just €50
• Simplicity and automation – Invest in cryptocurrencies even without technical knowledge. Once your investment is set up, we take care of purchasing, managing, and securing your cryptocurrencies for you.
• Portfolio diversification – Fumbi offers various products where your funds are invested in a portfolio of multiple cryptocurrencies, reducing risk and increasing the potential for long-term gains.
• Security and asset protection – Cryptocurrencies are stored in secure wallets with state-of-the-art security measures. You don’t have to worry about their protection.
• Access to expert analysis – We regularly provide portfolio analysis and optimization to maximize the efficiency of your investments.
• Localized and transparent services – Support in English and transparent reports on the performance of your investments.

INVEST WITH FUMBI

What can you invest in?

In today’s rapidly evolving cryptocurrency market, you should carefully consider your strategy—whether to focus on crypto mining or investing. However, Bitcoin and cryptocurrency mining is no longer as profitable as it once was. High hardware costs, electricity consumption, and decreasing mining rewards make this process challenging and, for many individuals, highly inefficient.

On the other hand, investing in cryptocurrencies offers a simpler, less time-consuming, and potentially more profitable way to participate in the growing digital asset market. With platforms like Fumbi, you can easily and securely invest in a variety of cryptocurrencies, diversify your portfolio, and let experts manage your investment. This allows you to leverage the potential of cryptocurrencies without the need to invest in expensive mining equipment.

Ultimately, for most individuals today, investing in cryptocurrencies is a more sustainable and less risky alternative to complex crypto mining. If you’re looking for a way to gain exposure to the crypto market with lower risk and without the need for specialized technical skills, investing is undoubtedly the better choice.

TAKE ADVANTAGE OF CRYPTO’S POTENTIAL