Miners are effectively rewarded for maintaining and building on the blockchain, using powerful computers and algorithms to verify transactions in exchange for bitcoin. But can you do bitcoin mining as a job?
Is bitcoin mining considered a job?
Anyone with a rack of high-speed computers and access to electricity anywhere in the world can essentially print money, simply by running free software.
It means if you are making money working from home, you have your profit/income. So mining can be considered as a freelance job. It can be either a part-time or a full-time job.
On the other hand, there are companies that mine crypto. It means they can hire you to perform certain duties. And in this case, you become an employee with an official salary and the office.
The role of a bitcoin miner often resembles that of an IT network professional, as both are responsible for keeping computer systems up and running at maximum capacity.
You get to the facility, you look at the machines, you make sure everything is working 100 percent, you monitor the units themselves. Then if you want to do some compounding, growing the operation, you’re going to add your new units and do some financial calculations to make sure the units you’re buying mine more than what you’re spending on them.
If you are an employee, it sounds like ‘a real job’, isn’t it?
Is it possible to have a full-time job from home?
My favorite quote is that ‘there is nothing impossible’. However, it depends on you and your possible investment in this career.
Why do I mean?
You generally won’t be able to do that out of your garage. You need dedicated space with a lot of electricity and cooling ( because ASICs are noisy and that’s the only way to mine bitcoin).
You also need significant capital to get there since you’ll need a ton of ASICs, and consider that every couple of years or so you’ll need to buy new machines to stay at that profitability.
Even so, mining is expensive. In addition to using large amounts of electricity, computers need to be replaced frequently. Mining farm promoters, therefore, need capital to start-up, expand, and maintain their farms to cover the following expenses:
- Rent a workshop
- Buy ASIC chips – varies from hundreds to thousands per unit
- Replace old equipment
- Buy a powerful cooling system
- Pay high electricity bills – the price will depend on your region. But you will need a really huge amount of electricity!
- Pay income taxes
The monthly yield of each mining unit in a network will vary depending on a number of factors, ranging from the cost of electricity to the fluctuating value of the currency itself.
Each specialized mining unit can cost anywhere from under $100 to several thousand dollars, depending on their speed and capacity.
A bitcoin miner’s pay is ultimately determined by how many coins they can mine in a given period of time, as well as the value of those coins, minus operating expenses. As a result, income varies.
Job opportunities in mining niche
So what are those opportunities and where you can find your first job as a bitcoin miner?
Let’s check on those options together.
A mining farm is a location, usually a large space, housing several computers dedicated to mining one or more cryptocurrencies.
The computers consume a lot of energy, and air conditioning is needed to prevent them from overheating. That’s why they are usually located in places with cold winters and cheap electricity like China, Norway, Canada.
Cloud mining offers a mechanism to mine a cryptocurrency such as bitcoin without having to install all the expensive hardware. There are companies that allow people to open an account with them and participate in the process of cloud mining for a basic cost. However, the process makes mining accessible to a wider number of people across distant locations.
- No installation or setup costs (hosting centers will host Bitcoin mining gear you buy and run it at their location. Many will charge a one-time setup fee)
- No noisy, heat-generating devices in your home.
- Maintenance is taken care of.
- No extra equipment to buy to have your mining gear running.
- No risks of fire and other issues that can arise from running it yourself.
- Some providers will cease operations of your chosen cloud miners if a profitability threshold is too low as difficulty goes up and new equipment comes out.
- Companies may go out of business or just run away with the funds if they want.
- Could end up a scam as promised payouts are unable to be met as the hash rate was oversold and owners decide to cut and run as they did not put some of their profits into upgrading to new gear as it comes out.
A mining hotel is a special room inside which the most effective conditions for the operation of equipment for the extraction of cryptocurrencies are created and maintained. The space in this room is provided to customers who install their mining equipment in rented areas.
The main characteristics and bonuses that clients of such organizations can count on are
- Stable connection to the electricity network and round-the-clock monitoring of its condition by the employees of the mining hotel.
- High power grid, which is sure to cover all customer requests.
- Constant control and support of the optimal indoor climate in the premises (the emphasis is on dry and cool air).
- Providing and monitoring an effective air ventilation system.
- Full fire protection and security systems that protect both the room and all the mining equipment that is in it.
- Implementation of an automatic fire extinguishing system that will fulfill its task even in the event of problems with the human factor.
- Insurance against damage and breakdowns of equipment from factors that are provided by the management of the mining hotel.
Thus, mining hotels are the best solution for those who are interested in cryptocurrency mining, have the means to do this, but would not want to spend their time and energy supporting technical issues.
How does it work?
First of all, the client takes his equipment to the hotel. And the administration of this specific room takes on the task of supporting the proper conditions that are necessary for the normal functioning of the devices.
Often, for an additional fee, the client can also order professional maintenance of their farms and ASICs. Thanks to this, he does not even need to visit a mining hotel. At least until he wants to stop working with the organization.
In addition, sometimes mining hotels offer a service for those who do not want to invest in the purchase of equipment: it can be rented from the organization for a period of time. A good option for those who still have not decided on plans, but would like to try to accumulate a certain amount of cryptocurrency through mining.
A mining pool is a group of miners who combine their computing power and split the mined bitcoin between participants. A disproportionately large number of blocks are mined by pools rather than by individual miners.
- Cryptocurrency mining pools are groups of miners who share their computational resources.
- Mining pools utilize these combined resources to strengthen the probability of finding a block or otherwise successfully mining for cryptocurrency.
- If the mining pool is successful and receives a reward, that reward is divided among participants in the pool.
There are several types of mining pool payout systems. You can choose which is best for you based on your own personal requirements. Most pools are provably fair and will pay out fairly based on their type of pool approach.
Start your own mining company
If you don’t want to work for someone else and have some investment, you can start your own business.
To create an excellent farm to mine BTC, you have to maintain it in proper condition. The mining farm must be registered and operate on the territory where the mining process is permitted. Miners should be trained to manage the Bitcoins mining process; they must earn a decent income and have flexible working hours.
What are the basic tools to start mining?
- A Bitcoin wallet to store your future coins.
- A mining software program – BTC miner and CG miner are examples of software that support ASICs you will need.
- Membership in a mining pool – miners pull their computing power to complete a Bitcoin block fast. When they complete a Bitcoin block, they share the rewards.
- A mining rig – nowadays, professional miners use ASIC machines to mine. ASICs are powerful devices specially designed for mining cryptocurrencies.
- A reliable internet.
- Power source – you need at least 1000 Kilowatts of power every week to run a small mining farm. Bitcoin farming machines consume a lot of energy. Just one ASIC machine can cost you more than $150 in energy bills every month. A good machine should have high computing power and low energy consumption. If you set up a mining farm with several ASICs, prepare to spend more than $1000 in electricity bills every month.
- Cooling fan – the mining equipment release a lot of heat. You need a good fan to keep the rig and your house cool.
How to build a career in mining?
Bitcoin mining is ideal for those that enjoy IT and are passionate about the potential of a decentralized currency.
What are the top requirements for a career in the mining space?
You won’t study mining at university, but having some technical degree will be really helpful. As Bitcoin is mostly about self-education. However, there are some online courses to learn the bitcoin mining basics.
In order to set up and maintain the whole mining infrastructure, you should really be good at computers and setting up environments. That’s why previous experience as DevOps or an IT admin is a perfect starting point.
Even if it is not profitable, you should understand how the whole mining process works and should be able to configure everything on your own. That’s why I recommend having your ‘pet project’ at home to increase your chances to find the job.
While there is no formal educational requirement, a background in network IT is strongly recommended for anyone pursuing a career as a bitcoin miner. Additional education in electrical engineering and HVAC can also help save on electric and cooling costs.
If you want to get a job of a bitcoin mining engineer, the companies usually have the following requirements:
- Experience in a DevOps/Engineering role.
- Strong understanding of web services, databases, and related infrastructure.
- Interest in researching topics related to Bitcoin and Bitcoin mining.
- Practical and demonstrable skill with an administrative language such as Python or Bash.
- Strong grasp of Unix-based operating processing systems (Linux).
- Solid understanding of networking and distributed computing concepts.
- Excellent troubleshooting skills, for when the playbook just doesn’t cover it.
I hope now you understand that Bitcoin mining can be a real job. And there are so many different options for you to choose from depending on your requirements, availability, and finances.