Bitcoin mining is an activity that injects fresh Bitcoins into the blockchain in order to make the network safe and healthy. It is an activity that entails hard labor, e.g., solving math, and it has much computation power. In this article, we will learn how long it takes to mine 1 Bitcoin and how much is mined daily.
How much time is required to mine 1 Bitcoin?
Theoretically, it will take 10 minutes to mine a block, which pays rewards to the miners in terms of currently 3.125 Bitcoins. In practice, however, it is not possible to mine one lone Bitcoin independently due to the enormity of the competition and the network difficulty. Solo miners on ordinary hardware will take decades or years to mine one single Bitcoin.
Factors affecting mining time
There are various factors influencing how long it will take to mine a Bitcoin:
- Mining hardware: The strength and quality of the mining hardware contribute significantly to how fast mining takes. High-strength ASICs (Application-Specific Integrated Circuit) are substantially more efficient at mining compared to standard PCs or phones.
- Network difficulty: The difficulty of the Bitcoin network is modified every two weeks to keep block time constant at approximately 10 minutes. It thus follows that with an increasing number of miners, the puzzles become more challenging to solve.
- Mining pools: Consolidating the power of processing through joining a mining pool enables the miners to stand a greater chance of getting the block rewards more frequently.
How many Bitcoins are mined per day?
The number of Bitcoins mined every day is quite consistent according to the design of the Bitcoin protocol. Currently, approximately 144 blocks are mined every day, and each block rewards the miners with 3.125 Bitcoins. This contributes approximately 450 new Bitcoins to the network every day. Other sources estimate that as miners mining efficiency grows, the actual number is somewhat greater than the average and at times up to 900 Bitcoins daily.
Factors affecting day-to-day production
Day-to-day production mining is affected by many factors:
- Block reward halving: Halved every four years, decreasing the amount of new Bitcoins injected into the circulation. The recent halving happened in April 2024 and reduced the block reward to 3.125 Bitcoins from half of 6.25 Bitcoins.
- Network hash rate: The combined calculating ability of the network determines the rate at which the blocks are mined. Higher hash rate can mean blocks mined within a shorter duration of time, but overall daily output is not influenced due to the protocol nature4.
Improved mining efficiency
- Hardware upgrade: Employing the most potent and advanced mining hardware can, in turn, make a miner’s hash rate considerably larger and allow them to win block rewards more often.
- Engaging in a mining pool: Engaging in a mining pool enables miners to pool their resources together in a manner that makes it easier for them to receive rewards regularly in the long term.
- Reduction in energy costs: Miners are able to cut costs by mining in regions where electricity is cheaper or using renewable energy, and they might be able to spend money on more advanced hardware or more machines.
It is a long and complex process to mine a single Bitcoin, varying with hardware capability and network difficulty. The daily reward of mining for Bitcoin remains constant, with approximately 450 new Bitcoins added to the network each day.
As the size of the Bitcoin network grows, so must the investors and the miners be conscious of these dynamics. The scarcity in the availability of Bitcoin, imposed by the episodes of halving and limited supply, is the primary force behind its price as well as its mining activity.
Read more: How much will you pay each month for a $100,000 mortgage?
