I recently bought my own small Bitcoin solo miner—the Bitaxe Gamma 602 (cost: approx. €130). But does something like this even make financial sense, or is it just a waste of money?
Here’s a quick overview and my conclusion:
How does mining actually work?
In Bitcoin mining, miners provide computing power to solve complex mathematical puzzles. Whoever solves the puzzle first gets to add the next block to the blockchain and receives the block reward as well as the transaction fees.
If you want to know more details, feel free to check out my more in-depth post from my series, “How Does Bitcoin Work?”:
💰 Running Costs (Electricity)
The Bitaxe Gamma 602 consumes extremely little energy compared to massive mining farms:
- Power consumption: approx. 19 watts
- Electricity price: approx. 35 cents/kWh
- Running costs: approx. 60 € per year
🎲 Will I ever find a block? (Solo mining)
With solo mining , you don’t join a pool—you mine entirely on your own. If my miner finds a block, the entire reward is mine. However, the probability of finding a block with this computing power is currently about 1 in 15,000 per year. It’s basically a constant Bitcoin lottery.
Why not mine in a pool? It’s simple: even then, it doesn’t cover the electricity costs, so it really only makes sense if you have extremely cheap electricity—for example, from a solar panel system—and a more efficient miner like an Antminer that draws a few hundred watts (maybe that’ll be a future project...)
💡 Why not just buy Bitcoin directly?
From a financial standpoint, it’s clear: Buying Bitcoin directly is more profitable. If you invest the ~€130 upfront cost + €60 in annual electricity costs directly into BTC via DCA, you’ll historically have a significantly higher expected return.
Why am I doing it anyway?
Learning and hands-on experience: This makes Bitcoin tangible. You gain a much better understanding of hashrates, difficulty, and the technology behind it.
Network security & decentralization: Every active node and miner contributes a small part to the security of the entire network—and thereby indirectly protects their own Bitcoin holdings as well.
The fun factor: It’s a brilliant hobby for tech and crypto enthusiasts.
Here, you can watch live as blocks are “mined” and then added to the blockchain, and see who finds the block. https://mempool.space/de/
🌿 Side Note: Why Bitcoin Doesn’t “Waste” Electricity
It’s often said that mining consumes too much energy. In reality, Bitcoin mining is one of the most energy-efficient processes around:
- Location-Independent & Flexible: Miners can operate anywhere where energy is abundant and would otherwise go to waste (e.g., surplus hydropower or solar peak output).
- Grid Stabilization: Miners can be turned on or off in a matter of seconds. They serve as a flexible consumer for power grids and thus directly promote the expansion of renewable energy.
Every watt used for mining contributes to a more secure network.
🎯 Conclusion
Should you buy a Bitcoin miner, too?
A solo miner like the Bitaxe isn’t intended as a pure financial investment.
It’s a learning tool, a way to support the network, and a small “lottery ticket”.
If you’re interested in the topic, I believe the knowledge you gain and the security it provides for the network are worth the money.
Do any of you also do home mining, or do you rely 100% on DCA? 👇
Stay safe & stack Sats!
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