trying out the Bitaxe: a cypherpunk journey
According to Dr. -ck, the administrator of Solo Ckpool, the chances of finding a block with my existing setup are roughly 1 in 1.2 million daily. That’s a 0.001% success rate. It’s akin to trying to win the lottery; however, instead of purchasing a ticket, you’re running a miner round the clock, hoping to accidentally stumble upon that elusive block. While it’s not impossible—there have been tales of small miners hitting the jackpot—it’s certainly not something to bank on.
The financials surrounding solo mining with a Bitaxe are quite clear: it’s not a money-making proposition unless you’re incredibly fortunate. But for those of us who have a deep passion for Bitcoin and cherish the cypherpunk culture, the experience of operating a miner, no matter how small, is worth the expenditure. It’s an opportunity to engage with the network, learn more about the mechanics of mining, and perhaps—just perhaps—win the Bitcoin lottery.
Source: bitcoinmagazine.com
For me, the Bitaxe symbolizes how far the Bitcoin landscape has evolved. Back in 2017, when I first dipped my toes into Bitcoin, I lacked the means to mine BTC while still in high school. Fast forward to now, and here I am, actively mining Bitcoin with a device that fits right on my desk. It feels somewhat surreal, to be honest. The Bitaxe operates with a simple 5-volt power cord that plugs into a standard outlet, allowing me to keep it running continuously without much hassle. It’s positioned right next to my monitor, quietly going about its business.
the probabilities and economics of solo mining
What I appreciate about the Bitaxe is that it rekindles that DIY, cypherpunk essence that Bitcoin was initially built upon. It’s not so much about turning a profit (more on that later); it’s about being part of the network, experimenting, and acquiring knowledge. Tinkering with the Bitaxe feels reminiscent of Bitcoin’s early days, when individuals were running nodes on their laptops and mining using CPUs. It serves as a reminder that, at its core, Bitcoin still champions individual empowerment and decentralisation.
Now, let’s delve into the probabilities and economics surrounding solo mining with the Bitaxe. To be frank, the likelihood of discovering a block with such a small-scale miner is astronomically low. My Bitaxe currently has a hashrate of approximately 634Gh/s, which is a mere fraction of what’s required to rival the expansive mining farms that currently dominate the Bitcoin network. To provide some context, the total Bitcoin network hashrate is around 400 exahashes per second (Eh/s), which translates to 400 quintillion hashes per second, compared to my 634 billion. So, indeed, the odds are not particularly in my favor.
From a financial perspective, solo mining with a Bitaxe doesn’t pan out as a lucrative endeavor. The power consumption is relatively low, yet the electricity costs in Australia can accumulate. Depending on your location, electricity rates might range from 20 to 30 cents per kilowatt-hour (kWh). Over time, that can definitely weigh down your wallet, particularly if you’re operating the miner continuously. If you’re not exceptionally lucky and manage to mine a block, you won’t see any return on that investment.
Let’s break it down: the current block reward stands at 6.25 BTC, but after the upcoming halving, it will reduce to 3.125 BTC. Even if you were to successfully mine a block today, you’d still need to account for electricity expenses and the time invested in mining. For the majority, the economics simply don’t add up. You’d likely be better off purchasing Bitcoin outright or investing in a more efficient mining unit if you’re earnest about turning a profit.
Of course, I don’t expect to strike gold with this tiny device. Yet, there’s a certain joy in watching it operate, knowing that, however unlikely the chances, I could theoretically mine a block and receive a reward. It resembles playing the lottery, but with a far more exciting, tech-savvy twist. Even if I don’t hit the jackpot, the journey of managing my own miner is rewarding in its own right.
Nonetheless, the Bitaxe isn’t primarily about profit. It’s about the experience, the excitement of joining the Bitcoin network, and the small possibility of mining that solitary block. For me, it serves more as a hobby than a commercial undertaking. I’m not looking to get wealthy off this, but I genuinely appreciate the mining process, even if the odds are stacked against me. Plus, there’s always that minuscule spark of hope that I could be the next fortunate miner to defy the odds and receive a block reward.
Recently, I had the fortune of acquiring a Bitaxe, a completely open-source and compact Bitcoin miner, during my visit to the Human Rights Foundation’s Bitcoin Summit in Nashville. It’s a captivating little gadget that enables you to connect to a mining pool or even mine solo on your own. The setup process was surprisingly easy, and the entire experience felt like a delightful, cypherpunk adventure. There’s something distinctly gratifying about holding a Bitcoin miner in your hand, especially when you think about the enormity of large-scale mining operations today. It’s a great way to introduce someone to Bitcoin mining on a smaller scale, reinforcing the decentralised spirit of Bitcoin.
