2010 Mining Economics Analysis Resurfaces: Miner Would Have Lost Money on Electricity Costs

A mining economics analysis from 2010 has resurfaced, highlighting the high costs of Bitcoin mining at that time. According to a post by TTBit on September 7, 2010, a miner would take an average of 338 hours to mine a block and pay $5.68 for electricity, making them a 'net loser'. The calculation assumed a 140-watt computer running continuously for two weeks, consuming approximately 47.33 kilowatt-hours (kWh) of electricity at $0.12 per kWh.

However, this analysis does not take into account other costs such as equipment, cooling, and connectivity. Additionally, the Bitcoin protocol still offered a 50 BTC subsidy as a reward for each valid block in 2010, which was significantly lower than today's prices. The market at that time had limited trade volumes and peer-to-peer deals, making it difficult to convert large prizes into cash.

Fast forward to 2026, the same 50 BTC would be worth approximately $3.94 million dollars at a price of $78,810 per Bitcoin. However, the block subsidy has been halved from 6.25 BTC to 3.125 BTC in April 2024, and is expected to decrease further with the next halving around 2028.