Needless to say, 2021 is a valuable year for Bitcoin, even more so than 2020. The cryptocurrency has experienced stable growth, and the price consistently has risen and hit its first record with a price point of over $20,000 on 16 December. 

However, the bull market phase doesn’t show signs of slowing down, and the latest development is a price of $60,000 in March 2021. Bitcoin is driving increased attention, not just by investors that want to trade and invest in BTC but also miners that are looking to mine on the blockchain network. If you also want to get into BTC mining, here we explore some of the advantages, disadvantages of Bitcoin mining and what you need to get started in this field.  

The Mining Process 

The mining process was devised as a way for the blockchain network to regulate its inflation rate without relying on the contribution of external entities. The mining process entails validating blocks of transactions by the miners who keep the network secure and are approving blocks of transactions in the network. This process produces new BTC.  

But the mining process is not that simple due to two different blockchain protocols. One cuts in half the block reward that the miners are assigned to when they successfully solve the complex computational puzzle.

And another protocol that enhances the difficulty of mining based on the computing power in the network after 2,018 blocks are added to the network. So, in other words, the costs of mining are increasing because the competition is huge, and the reward is simultaneously minimizing after each halving. 

So, if you want to get BTC quickly and easily, you can sign up on an online trading site. For example there are many high-end automated trading platforms like Bitcoin Digital. This exchange platform automatically completes orders and conducts in-depth market analysis for better results. Actually, you can earn an ROI of up to $800 in just eight hours of trading on the site.  You can register by depositing $250.

The Equipment  

After taking into consideration these costs, you also need to be aware that you need proper mining equipment in order to competitively mine on the network. As we said that because the competition is rising, you will need to invest upfront in state-of-art application-specific integrated circuits (ASIC) or graphics processing units (GPU).  

On top of that, you need to know that your electricity bill will probably grow significantly due to the nature of mining, and as we said, the difficulty of mining is increasing as the total computing power rises in the network. 

Mining Pools 

With that being said about the costs of mining, it is highly advisable to compare different mining pools and to join one because mining as a solo miner on the blockchain network is not profitable anymore. In order to join the mining pool, you will probably be required to pay a certain fee, and you will also need to share the block reward and transaction fees among the other members of the pool. 

But, also, you will get to combine your resources and computing power with them, which puts you at an advantage regarding the total costs of mining. Another option is mining farms, but they facilitate mining on an industry level and are formed as businesses.  


Another advantage of being a miner is the opportunity to vote on proposals in the network, and based on the total computing power, you will receive a certain number of votes. Plus, others find mining appealing because it allows them to earn higher rewards by sharing the costs with other miners. 

Overall, there are disadvantages and advantages to mining, but online trading is gaining traction due to its accessibility and lower costs. In conclusion, you need to do your own research regarding the costs and benefits of mining and the return on investment you can gain in the long run.