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How to Mine Bitcoin in Australia

In this article, we will explain you how to mine bitcoin in Australia and the steps to mine bitcoin in Australia.

What is Bitcoin Mining?

Bitcoin mining is the process of generating new bitcoins by solving extremely complex mathematical problems that confirm transactions made in the currency. If a miner successfully mines a bitcoin, the miner receives a predetermined amount of bitcoin.

There are just 21 million bitcoins around the world.
About 18.5 million are in circulation, which means there are less than three million still to “mined”.
It is referred to as “mining” because much like gold, it has to be extracted from somewhere, but instead of a mine, the people are using computers.

Therefore, Bitcoin mining is the method of extracting Bitcoin from the internet.
Since the prices of cryptocurrencies and Bitcoin particularly have soared over the last few years so it’s no surprise that interest in mining also increased. For the majority of people, the chances of Bitcoin mining aren’t great because of its complexity and high costs.


How Bitcoin mining works?

To be able to add the block to the blockchain, Bitcoin miners compete to solve extremely difficult math problems which require expensive computers as well as huge amounts of electricity. To finish the process of mining, miners must be the first to come up with the most accurate or nearest answer to the problem.

The process of guessing the right answer (hash) is called proof of work. Miners guess the target hash by randomizing their guesses as quickly as they are able to and it requires a lot of computing power. The difficulty increases when more miners join the network.

The required hardware for computers is known as Application-Specific Incorporated Circuits (ASICs). It may cost upto $10,000. ASICs consume massive quantities of electricity and it has drawn critique from environmentalists and reduces the profit margins of miners.

If a miner successfully add a block on the blockchain, they’ll receive 6.25 bitcoins as reward. The rewarded amount will be cut in half approximately every four years, or every 210,000 blocks. As of April 2022, bitcoin traded at around $40,000, making 6.25 bitcoins worth around $250,000.


How to Mine Bitcoin in Australia

There are two main ways to mine bitcoins in Australia;

1. Cloud Mining in Australia

Cloud-based mining has become a very popular Bitcoin mining option too. Like the name implies, cloud mining does not require you to physically own the hardware meant for mining Bitcoins. To earn a profit from cloud mining, you’ll require access to top-of-the-line hardware to be used for cloud mining.

It’s not cheap , and it’s better to join a Bitcoin cloud mining service like Hashflare as well as Genesis Mining.

These services let you lease the hardware (present anywhere in the world) designed for mining BTC while others perform the mining work for you. The initial cost to use cloud mining services is lower than personal mining.

Choose a trustworthy and reliable service provider because there have been a number of cases of Bitcoin cloud mining frauds.

Since non-renewable energy is expensive in Australia and the many steps (and the initial investment) required to obtain the reliable source of renewable energy can be a challenge, So, cloud mining is your best option as an Australian miner.

 

Steps to Mine Bitcoin through Cloud Mining in Australia

1. Select a reputable cloud mining service provider

Check out the various platforms for cloud mining, take into consideration the contract and fees associated with it. Conduct your own research to determine whether they are a reliable cloud mining service provider.

2. Select the suitable mining package / contract

Review the mining contract, you should check how long the contract will last. Additionally, you should consider the mining hardware that the service provider is using and then compare it to the hardware that is offered by other service providers.

3. Compare different mining pools and select a reputable mining pool

Once you’ve selected the plan several cloud mining services will require its users to choose a pool. It is important to compare different mining pools also, based on the track record as well as real user reviews.

4. Start Mining Bitcoin

Once you’ve begun mining bitcoin it is recommended to store your Bitcoin in a Bitcoin Hardware wallet.


2. Personal Mining

Personal mining, also referred to as GPU mining is the process of mining cryptocurrency using a. personal computer. This is usually done via Graphics Card Unit (GPU). The growth in Bitcoin mining over the last few years has seen a wider range of compatible computer hardware becoming accessible.

Hardware units that are specifically designed for mining are available, for instance, ASIC mining. (Application Specific Integrated Circuit). ASIC miner chips are specially created to conduct crypto mining. They offer the benefit of generating an increased efficiency in hashing power, for the energy consumed, in comparison to a regular computer.

Specialized ASIC hardware doesn’t come cheap. If you are considering personal mining, ensure that you’re prepared to make an investment of a substantial amount, your internet connection is speedy and you have access to cheap electricity.

Begin by buying ASIC miner (hardware), it’s cost varies according to whether it’s brand new or used and what model you select. In general, you can purchase it from anywhere from $500 and around $5000. It is then necessary to pair this ASIC miner with the appropriate mining software, and then you can begin mining bitcoin from your home.

Personal mining can be very expensive, which is why it’s recommended to join a bitcoin mining pool. This lets you join forces with other miners to earn BTC reward points depending on the amount of your contribution to the pool. You’ll have to pay fees, it is usually affordable. If you’re looking to mine Bitcoin in Australia be sure that you choose a mining pool which is reputable, reliable and established to protect your investment.

Instead of competing against one another, your collaboration will allow you to compete against professional mining companies. You will be likely to earn more consistently.

 

Steps to Mine Bitcoin through Personal Mining

1. Use a mining profitability calculator

This will let you know whether the amount of Bitcoin you earn is worth the money that you invest in it.

2. Select the right mining hardware that fits your budget

The comparison of different hardware features including power consumption, and hash rate is essential when making a decision on what to use and what price to pay for mining hardware for ASIC v/s a GPU/CPU set-up.

3. Join a Bitcoin mining pool.

This will increase your chances of making your venture profitable since you’ll be combining resources with other miners. It is essential to compare different pools, consider their track records and the real reviews from users.

4. Download mining software

Many programs are available for mining Bitcoin or crypto. Some softwares are more technical to use, while some others may provide a more user-friendly interface. Mining pools might also provide or suggest a specific software to use. If you, however, join a mining pool with its own mining program / software, you won’t have to purchase one.

5. Start Mining Bitcoin

When you start mining, it is recommended to transfer your earnings into secure BTC wallet. Keep yourself updated with the latest bitcoin prices and mining difficulty adjustments. This will help in keeping your mining setup is profitable.

If you think that Bitcoin mining is not the right option for you. You can also read How to buy bitcoin in Australia.

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