Solo Bitcoin Miners Successfully Claim Full Block Rewards Despite Network's High Hashrate

The Bitcoin mining scene has recently witnessed an unexpected turn of events as single miners rack up big wins by securing entire Bitcoin block rewards. This is particularly remarkable considering that Bitcoin’s network hashrate is riding high on new peaks, currently teetering around 902 exahashes per second (EH/s), not too far off its historical peak.

The Odds in Solo Mining

Bitcoin’s increasing network hashrate presents formidable competition and substantially high difficulty for solo miners to secure blocks. However, the last week proved differently when a solo miner acting through the Solo CK pool victoriously claimed block 907,283, earning the generous full block reward of 3.125 BTC. This paycheck was worth more than $372,000 at the time, coupled with an additional $3,436 obtained through transaction fees. What’s notable is that this big catch wasn’t an isolated event. Earlier in July, another solo miner, outfitted with a meager 2.3 petahashes of power secured an entire block reward. The same pattern was also seen repeatedly in the preceding months, with noteworthy victories in June, March, and February.

The Role of technology in Solo Mining Success

“These solo mining victories aren’t merely the product of good luck,” says Samuel Li, chief technology officer of ASICKey, a renowned player in Bitcoin mining hardware. “These miners are leveraging state-of-the-art, efficient hardware to defy the odds stacked against them.” Contemporary miners, compared to traditional setups, deliver a substantial hashrate without drawing a significant amount of power, thus enhancing the miners’ likelihood of success. According to Li, efficiency is the linchpin of mining. This refers to how accurately a mining rig transforms electrical power into hashrate. Consequently, more efficient mining means generating a higher hashrate using less electricity. This evolution in mining efficiency subtly complements a broader trend amongst mining companies to lower expenses and enhance profits through energy efficiency.

Mining Efficiency and Odds of Success

However, despite advancements in ASIC efficiency, as Li highlights, the fundamental chances of winning for solo miners have not dramatically shifted. “Solo mining remains, for the most part, a lottery,” explains Li. “Unless a miner commands tens of PH/s, which is the bare minimum for a reasonable chance of success considering today’s Bitcoin network hashrate.” Li further illustrates that a miner with one petahash (PH/s) of hashpower only has about a 1 in 650,000 chance of solving a block every 10 minutes. Here, one peta hash (PH/s) equates to 1000 tera hashes (TH/s).

The Resurgence of Solo Mining

There has, nevertheless, been a modest revival in interest in solo mining and for varied reasons. As Li confirms, some miners are opting for solo mining not in pursuit of regular income, but for the allure of a sizable reward — 6.25 BTC plus fees, which could be a game-changer if won. “While financial incentives do play a significant role, some miners are driven by ideological motives,” Li stated. “They value network decentralization and the capability to run independently of centralized mining pools.” Enhanced decentralization through solo mining preserves the original vision of decentralized, permissionless participation in Bitcoin mining.

The Future of Solo Mining

“More solo miners who use clean energy and efficient hardware could symbolize a healthier, more decentralized Bitcoin network,” Li punctuated. This movement could also mitigate the risks of a 51% attack, where an individual or group controlling 50% or more of the network hashrate could potentially double-spend coins. While rare and costly, such an event significantly undermines trust in the network. Despite facing stiff competition from market leaders such as the US-based mining pool Foundry USA and others like AntPool, ViaBTC, and F2Pool, solo miners have demonstrated that they are here to stay, armed with superior, efficient technology and a focused strategy for success.

Solo Bitcoin Miners Successfully Claim Full Block Rewards Despite Network’s High Hashrate