Power cost

Anyone who understands Bitcoin mining, knows that there is one variable which almost solely determines the profitability rate of a Bitcoin mining operation. Power cost. In 2024, most retail mining operations are barely breaking even. When it comes to these retail operations, most, if not all, Bitcoin mining profit is eaten up by the power costs of running the mining machines (ASICS.)

Based on current rates, if you operate one Bitmain Antminer S21 200TH machine, this machine produces 0.00466211 BTC per month (equal to $283.27 USD as of 6th of August, 2024).

This Bitcoin yielded by the machine per month is yours. In your wallet, to spend.

Now, where does this yield normally go for retail miners?

POWER COST.

Power is the most important overhead line item for mining Bitcoin, apart from purchasing the ASIC (mining machine.) For retail miners, power cost almost completely cancels out Bitcoin rewards, or puts them at a loss. detailed below:

One Bitmain Antminer S21 200TH machine operating with a power cost of 15.45 cents per KWH (US average) produces a loss of -$105.77 per month. (Confirmed by https://www.nicehash.com/)