Solo Bitcoin Miners Defy the Odds as Block Rewards Keep Coming

Solo miners have been defying the percentages, efficiently claiming full Bitcoin block rewards even because the community hashrate hovers close to all-time highs.

As of this writing, the Bitcoin (BTC) community’s hashrate is hovering round 902 exahashes per second (EH/s), slightly below its all-time peak, according to Blockchain.com. The determine reveals rising competitors and better issue, suggesting that single miners face steep odds to win a block.

Nonetheless, final week, a solo miner defied these odds, securing block 907,283 by way of the Solo CK pool and incomes the total 3.125 BTC reward, value over $372,000 on the time. The miner additionally obtained a further $3,436 in transaction charges.

That win wasn’t an remoted occasion. Earlier in July, one other miner with simply 2.3 petahashes of energy claimed a full block reward, whereas related wins were recorded in June, March and back in February.

“We’re seeing solo miners win blocks not due to luck, however as a result of they’re working highly effective, environment friendly {hardware},” Samuel Li, chief expertise officer of ASICKey, instructed Cointelegraph. He added that fashionable miners are constructed to ship “critical hashrate” with out the large energy draw of conventional setups.

Associated: Solo Bitcoin miner scores $373,000 block reward

Effectivity in focus

For solo miners, effectivity is all the pieces, Li mentioned. “Take our KEYMINER A1—it attracts simply 650 watts however delivers 1,100 TH/s on Bitcoin, with month-to-month income round $1,200. For these diversifying into altcoins, it might probably earn as much as $3,800 per 30 days mining Sprint,” he famous.

The KEYMINER A1 is a part of ASICKey’s {hardware} line launched final November, which additionally contains the KEYMINER X and KEYMINER PRO.

Based on the corporate, the KEYMINER X delivers 2,300 terahash per second (TH/s) at 1,300 watts, whereas the PRO mannequin provides as much as 5,800 TH/s at 2,800 watts. Beneath present market circumstances, the corporate estimates month-to-month returns of as much as $6,300 for the PRO.

Nonetheless, regardless of the enhancements in application-specific built-in circuit (ASIC) effectivity, the “elementary odds [of solo miners winning] haven’t shifted a lot,” Li mentioned.

“Solo mining continues to be largely a lottery, until you management tens of PH/s, which is realistically the naked minimal for having a measurable statistical shot at success inside an affordable timeframe,” he added.

Li defined that at right now’s Bitcoin community hashrate, a miner with one petahash (PH/s) of hashpower has a few 1 in 650,000 likelihood of fixing a block each 10 minutes. One peta hash (PH/s) is equal to 1,000 terra hashes (TH/s).

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Why are miners going solo?

Li confirmed that there was a “modest resurgence” of curiosity in solo mining, however for various causes. “Some miners are selecting it not for predictable revenue, however for the opportunity of a giant reward—6.25 BTC plus charges—which will be transformative if received,” he famous.

Whereas financial incentives play a key function, some are pushed by ideological motives, valuing community decentralization and the power to function independently of centralized mining swimming pools.

Based on data from Hashrate Index, US-based mining pool Foundry USA continues to dominate Bitcoin mining, commanding 29.3% of the full hashrate. AntPool follows with 16.2%, whereas ViaBTC and F2Pool maintain 12.0% and 11.6% respectively.

If a single pool (or just a few swimming pools appearing collectively) management greater than 50% of the hashrate, they may theoretically launch a 51% attack, which might permit them to double-spend cash. Whereas uncommon and dear, such an occasion would erode belief within the community.