From "nikcantmine" to "nik CAN mine": A Hands-On Look at Solo Bitcoin Mining with a Bitaxe
My journey in the Bitcoin world began in 2017, a time when my Twitter handle, "@nikcantmine," reflected my reality as a high school student lacking the resources for Bitcoin mining. Fast forward to today, and my handle, now on X, proudly proclaims "nik CAN mine." This transformation stems from a recent, exciting experience at the Human Rights Foundation’s Bitcoin Summit in Nashville, where I received a Bitaxe, a marvel of miniaturized, open-source Bitcoin mining technology.
The Bitaxe itself is a captivating device. Its diminutive size – easily held in the palm of your hand – embodies a certain cypherpunk aesthetic, a tangible representation of the decentralized ethos of Bitcoin. Setting it up was surprisingly straightforward, adding to the overall appeal. This ease of use makes it an ideal entry point for anyone curious about the process of Bitcoin mining, even on a small scale.
While connecting the Bitaxe to a mining pool would yield negligible profits given its relatively low hash rate compared to the massive computational power deployed by larger mining operations, the real intrigue lies in solo mining. This is where the odds become drastically, almost impossibly, long.
The potential rewards are substantial, however. Earlier this summer, a remarkable event unfolded within the Bitcoin mining community. A Bitaxe miner, against all odds, successfully mined a solo block, claiming a block reward of 3.25 BTC, which at the time was worth over $205,000. This incredible feat showcased the inherent possibility, no matter how improbable, of solo mining success even with limited resources.
This success story provided a glimmer of hope, documented across social media platforms such as X. Data indicates that this successful Bitaxe operated consistently at 500 Gh/s for weeks, before unexpectedly increasing its hashrate to 3 TH/s just prior to finding the block. This is a significant jump, demonstrating the impact that even temporary luck and a little bit of increased hashrate can have.
My own Bitaxe currently operates at over 634 Gh/s. However, I am well aware of the incredibly slim chances of replicating that success. According to Dr. -ck, the administrator of Solo Ckpool, the odds of a miner with my current hashrate finding a block are approximately 1 in 1.2 million per day. This translates to a ridiculously low daily probability of success – around 0.001%.
The economics of running the Bitaxe are not particularly favorable. The likelihood of recouping my (zero) initial investment – even slightly – through a solo block reward is insignificant. To clarify, this Bitaxe was gifted to me and this isn’t representative of the profitability of owning Bitaxe hardware. Investing solely for the potential of a large payout, while ignoring the almost certain long-term deficit, is extremely high risk. It would indeed be more profitable to buy Bitcoin than to mine a block for this reason!
Despite the frankly dismal odds, the excitement persists. The Bitaxe presents a unique blend of practicality and whimsy. Its low power consumption (operating on a standard 5-volt power supply) allows for 24/7 operation without incurring excessive electricity costs – although, I will likely re-evaluate this aspect once I get my next power bill. More than economics, the Bitaxe stands as a fascinating experiment, a tangible connection to the core principles of Bitcoin – a direct and personal participation in the intricate dance of securing the Bitcoin network.
The experience is further enriched by its pairing with my new Coldcard Q, a hardware wallet known for its robust security features. The prospect of mining a solo block and receiving the reward directly into a brand new, never-before-used Bitcoin wallet, untouched by any KYC (Know Your Customer) procedures, holds a captivating allure. This would represent a quintessentially private and independent Bitcoin transaction, mirroring the spirit of Bitcoin’s philosophy. It’s precisely this intersection of physical engagement, inherent risk, and potent rewards that makes the Bitaxe project so appealing despite its economic inefficiencies.
Many people get into mining with high expectations of profit, leading to disillusionment. However, viewing this project as a testament to the principles of Bitcoin, rather than a get-rich-quick scheme, reframes the venture as a fascinating learning experience. The long odds underscore the incredible mathematical puzzle that Bitcoin mining represents and the power of decentralization behind the Bitcoin network. Solo mining with the Bitaxe makes that tangible in a way that few other things can. Regardless of the final outcome – a winning block or just another day of 0.001% odds – the Bitaxe delivers a unique and rewarding experience. My journey, from "@nikcantmine" to "nik CAN mine," is a testament to the engaging and often surprising aspects of the Bitcoin ecosystem, even for small-scale operations like solo Bitcoin mining. And that, I believe, isn’t a bad thing at all.
