I know, this statement might sound way too simplistic; let me elaborate and provide you with some details of my back-of-the-envelope calculation.
As of March 24, 2022, the Bitcoin network hash rate is around 201 ExaHash per second (EH/s). Explained in lay terms a hash is a complex mathematical operation. 201 ExaHash is equal to 201 followed by 18 zeros, which is a pretty high number of complex mathematical operations per second. It represents the computational power provided by all bitcoin miners globally.
If you want to mine bitcoins you need a very unique piece of equipment; specifically you need an ASIC miner. This piece of hardware is characterized by hash rate and energy consumption. One of the models available in the market is the Antminer S19 Pro, which features:
- A hash rate of 110 TeraHash per second (TH/s);
- A power consumption of 3,250 Watts (W).
Knowing that new blocks in the bitcoin blockchain are mined every 10 minutes, for which the miner receives a reward of 6.25 bitcoin, we can estimate that 900 new bitcoins are mined per day.
As stated above, global calculation power available is 201 EH/s. Based upon this number we can then estimate that app. 19,300 EH are required to mine one bitcoin.
With your brand new Antminer S19 Pro you enjoy a hash rate of 110 TH/s. A single unit will need slightly over five and a half years to mine one bitcoin (5.6 years).
Assuming your hardware is working at full capacity for 5.6 years, and knowing that it requires 3,250 W to operate, 158 megawatts-hour (MWh) of electricity will be consumed before mining your first bitcoin.
If you are kind of a geek like me and enjoy making calculations that involve renewable energy, you might be wondering whether it makes sense to feed your mining operations with solar power.
Let's say you can install a 106 kW solar PV plant with a specific production of 1,500 equivalent hours (eq.h). This plant will be generating 159,000 kWh a year, theoretically enough to mine your first bitcoin.
However, so far you have a single Antminer unit plugged into the solar plant, mining 1,500 hours per year. This is enough to produce 594 EH, or 0.03 bitcoins. In the process it will have consumed 4,875 kWh, leaving most of the generation output of the solar plant available.
I assume that you'd rather want your first bitcoin sooner than later, so obviously you need to scale up your operations and acquire more Antminers. Let's say you want to mine one bitcoin in one year. Then you need to connect 32.5 Antminers to your 106 kW solar plant so that 100% of the generation output is utilized for mining.
It might sound cool but... does it make economic sense to build a solar plant to mine bitcoins? I will be exploring this question in a future post.