Mining a BLOCK with my BitAxe Mini-Miner | Bitcoin Education

Video Transcript:

hello there and welcome to the hash power Academy my name is Jake and in today’s topic we’re going to be looking at what are the probable chances that I can find a Bitcoin block with this little guy this is the bit ax white paper Edition it produces about one terahash of compute power in any second and the total Network the network hash rate going to all the mining pools right now is about 800 68 million terahash so what is the chance that I can find the next block in the chain there you are it’s a 1 in 868 millionth chance for me to be able to find the next block but you can also divide that down to a day remember that Bitcoin blocks are spacing and regulating the amount of time between each block so the way that you would divide something else by 24 to divide it from hourly to daily with Bitcoin we can do calculations with blocks by dividing by 144 so what is my chance to mine a block within one day that’s roughly about 6 million I have a one in six million days of probable chance to find the next block so in essence it will take me 6 million days roughly to find the next block which is not feasible for this little guy to run for 6 million days and that divides out to the years and stuff like that so we refer to this sort of setup if you are Solo mining as well with something this small it would be considered as Lottery mining you are crossing your fingers paying a nominal amount of electricity on your bill to hopefully randomly find a block with such stupidly low odds that you probably won’t find a block um and that that leads me on to my strategy which is I have this connected to a poll called brains which have lightning Network payouts because if you plug into other mining pools there is a minimum payout threshold because to send Bitcoin you have to pay a fee and that fee is the amount of data space that the the the transaction takes and lightning allows you to move that transaction settlement to a second layer and uh yeah get paid in smaller amounts so what I’m doing is I want to build up about $10 worth of bitcoin mined from this little guy and then yeah and then I’m going to switch it to Lottery mining but I’ve I’ve got that first $10 worth of bitcoin mined so that I can allow that to appreciate to the dollarized cost that I paid for this little device um I hope this was interesting I hope this maths wasn’t too crazy um you can change this amount of hash r rate comparing it to the network for anything the total amount of hash rate that you have um per single minor that you might buy cuz a typical standard Asic can go into the 200 to 300 terahash uh range but the the statistical chance of you finding a block with a single machine is not worth the uh the weight in digital gold shall we say and this is because you want um payouts of Bitcoin um that have some form of parallel to the amount of electrical billing that you’re probably going to have each month so you want some form of payout of Bitcoin in a month or even shorter and that just ensures that you can manage electrical Bills versus the Bitcoin Revenue but second you should be paying your electrical bills with dollars because you are effectively buying the Bitcoin that you mind that you’ve already mined without a fee if you go onto a platform and exchange to buy Bitcoin you get converted out of some of the spread and you also are paying a fee hope this was an interesting short video I hope the maths wasn’t too crazy and I will see you in the next one goodbye