Forgot your password?

Can You Make Money Mining Bitcoins?

By Edited Mar 8, 2014 6 14

By now most of us have heard about Bitcoin and the huge success that it is having around the world. For those of you that haven’t, Bitcoin is a digital currency like the US dollar ($), the British pound (£) and the Euro (€), but unlike these it is not tied to any country and does not have any hard currency (e.g. notes and coins), it is purely numbers in a computer that are heavy security.

Find Out More About Bitcoin

This begs the question can you take advantage of this new currency and make some money from the comfort of your own home?

I decide to have a look and see if I can make some money mining this new currency using my desktop computer.

I discovered that the way that Bitcoins are created is through a process called mining (like the mining of gold and silver only digital), where computers are used to process transactions. When an individual or group meet the required level they are rewarded with 25 coins for their hard work.

This Is What Mining Was Like!

Mining Equipment
Credit: Photo by Dave Friedel

So can you start mining from your own home?

Yes, you can. It can be a little complex but with a little guidance you can be up and running in next to no time. The process of mining has become easier with the introduction of visual mining programs.

So what do you need to get started?

A Home Office

Home Office
Credit: Photo by Sean MacEntee

In order to start mining Bitcoins you need the following:

  • A Bitcoin Wallet (this is a program you put on your computer that keeps track of your money)
  • A miner program (there are several around however look for a GUI version so you don’t have to code)
  • A computer (preferably one with a powerful graphics card)
  • An internet connection (most of us have this)
  • Electricity (with your computer needing to run 24/7 it can use a bit of power)

Well I had all of this and was ready to get going, but don’t get started yet as I discovered some things that I did not expect.

Is it profitable to be a miner?

Flying Money Do You Want Some?

Credit: Photo by 401(K) 2013

As I looked further into the mining of Bitcoins, I discovered something interesting. As I mentioned earlier work required to earn coins increases and it becomes harder to mine. This has led to people building more powerful computers that have been designed purely for mining. What really shocked me was that with my computer it would take years (around 14 at time of investigation) to mine one lot of 25 coins! With Bitcoins being worth about US$600 each at the time I would make $15,000, that’s only about $1,000 per year and I would only be getting payed at the end.

I did however discover there are groups of people (called pools) that work together and earn the coins, what you earn is usually determined by how much of the work you do.

After discovering this I jumped on an online calculator and found that I would earn about US$0.15 per day. I thought to myself, this could be ok, all that I need to do is get a whole heap of computers and I would be able to earn a bit of money with little time required.

Then I realised that I had forgotten to take into account the electricity used by my computer! With taking into consideration the cost of electricity I discovered that I would actually lose money.

So how do people make money mining?

The people that are making money mining are the ones that have the money to buy thousands of low power consuming computers that are specially designed for mining.

A Bitcoin Miner

Bitcoin Mining Machine
Credit: Photo by Zach Copley

The other problem that I came across was that work required became more and more as time goes on, reducing the return received.

So just like the mining booms of Gold in Silver of the past it turns out to be the people that are supplying the picks, shovels and jeans that are making all the money. With the creators of the specialised machines unable to keep up with demand, if you have the knowledge then hardware is the pace to be.

So should you mine Bitcoins?

Bitcoin Currency

Bitcoin Currency
Credit: Photo by Zach Copley

If you are thinking of mining for money then NO! It takes a lot of specialist equipment to make mining viable and has little return. However if you are interested in computers and want a challenge then go ahead.

Related Articles By Josh Young

Can Bitcoin Survive?

What Does The Future Hold For Bitcoin?

Find Out More With These Products From Amazon

Bitcoin Internals: A Technical Guide to Bitcoin
Amazon Price: Buy Now
(price as of Mar 8, 2014)
Discover what make Bitcoins work
Bitcoin Beginner: A Step By Step Guide To Buying, Selling And Investing In Bitcoins
Amazon Price: Buy Now
(price as of Mar 8, 2014)
Find out how you can make money investing in Bitcoins
Bitcoin Mining Step by Step (Bitcoin Step by Step)
Amazon Price: Buy Now
(price as of Mar 8, 2014)
Get the information that you need to get started in Bitcoin mining


Feb 27, 2014 2:24pm
I think that new people missed the boat for Bitcoin mining. Luckily, you can still mine Dogecoin, the new, exciting digital currency. Find out how: http://www.infobarrel.com/Dogecoin_Mining
Feb 27, 2014 8:42pm
Thanks for the comment. I am not interested in the mining of any coins as I am only interested in opportunities that have a long life.
I will be publishing an article on what I believe to be the future of cryptocurrency soon.
Mar 7, 2014 6:04pm
Exactly. Dogecoin and other currencies are on the rise a bit though! :D
Mar 8, 2014 1:03pm
Dogecoin and the others are getting most of the people that have missed the boat with Bitcoin. I don't expect much to happen with these others
Mar 7, 2014 6:42am
Great article Josh Young, too bad Bitcoin seems to be collapsing
Mar 7, 2014 2:41pm
What you are seeing is only a hiccup. Worst is yet to come. You can read about it in my next article which will be out in the nest day or so. Thanks for the comment.
Mar 7, 2014 6:06pm
Oh but will it really collapse? I hear people say that, but things seem to recover quickly if it drops (except the hype overinflated it a bit haha)
Mar 8, 2014 1:05pm
I have now uploaded my latest article which is on the future of Bitcoin you can get to it by clicking on my username. Or else it will be in the related articles section soon.
Mar 7, 2014 3:26pm
I have experimented using both independent way and the collaborative way, I have used programs and I have used websites... I still do not have a whole bitcoin. This is a great article for folks who think "I can do that"
Mar 7, 2014 3:29pm
Thanks Jacob.
Yes what I did not realise when I first looked into it was that the people that are making the money mining Bitcoins are the ones that got in early and have been able to earn the money needed to invest in more better miners. Or those that create the mining equipment of course.
Mar 7, 2014 6:07pm
The thing is, the miners that did start early bought specialty equipment that sold out when people got word as well!
Mar 8, 2014 1:06pm
Yeah the best equipment is reserved for the large buyers and they sell out almost straight away.
Mar 11, 2014 8:14am
I am not sure if Bitcoin or Dodgecoin will make it; however, I believe the concept of the digital currency is viable and something we will see main stream in a few years.
Mar 14, 2014 11:05pm
I completely agree and outlined my thoughts in my latest Bitcoin article What Does The Future Hold For Bitcoin.
Thanks for the comment and hope that you like my latest bitcoin article
Add a new comment - No HTML
You must be logged in and verified to post a comment. Please log in or sign up to comment.


  1. "Bitcoin." Bitcoi. 22/02/2014 <Web >
  2. "Start Bitcoin." Start Bitcoin. 22/02/2014 <Web >
  3. "Bitcoin." Wikipedia. 22/02/2014 <Web >
  4. "Bitcoin Mining." Bitcoin Mining. 22/02/2014 <Web >

Explore InfoBarrel

Auto Business & Money Entertainment Environment Health History Home & Garden InfoBarrel University Lifestyle Sports Technology Travel & Places
© Copyright 2008 - 2016 by Hinzie Media Inc. Terms of Service Privacy Policy XML Sitemap

Follow IB Business & Money