Blockchain analytics firm LookOnChain reports a rare event: five Bitcoin (BTC) wallets, dormant for over a decade and a half, have suddenly become active. Each wallet, previously holding 50 BTC acquired through mining on April 26, 2010, transferred their entire holdings earlier today. These early adopters of Bitcoin mining have potentially realized profits estimated at $29.6 million after holding their mined coins for so long.
Is Bitcoin Mining Still Profitable?
The simple answer is yes, mining Bitcoin (BTC) can still generate profits. However, the conditions for mining have changed significantly since Bitcoin’s early days in 2010.
Over fifteen years ago, the Bitcoin network’s difficulty was remarkably low. Back then, the mining difficulty factor was close to 1. This meant that individuals could mine new blocks using readily available CPUs in standard desktop or laptop computers. Data from Blockchain.com reveals that the current Bitcoin network difficulty has surged to 127 trillion. Because the mining difficulty is at such a high level, standard CPUs are obsolete. Modern miners rely on specialized mining hardware designed specifically for Bitcoin mining, known as ASIC miners.
Another factor impacting Bitcoin (BTC) mining is the block reward, which has decreased significantly since 2010. Back then, Bitcoin had not yet undergone its first halving event. Miners were rewarded with 50 BTC for every block successfully mined on the blockchain. Since then, Bitcoin has undergone four halving events (2012, 2016, 2020 and 2024), which have cut the block reward in half each time. At this time, miners receive 3.125 BTC for successfully mining a new block. While the price of Bitcoin has risen considerably over the years, the block reward has decreased to accommodate these changes.
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While it’s still possible to profit from Bitcoin mining, competition has grown tremendously. Large-scale mining operations, corporations, and investors have entered the cryptocurrency space. Starting a Bitcoin mining operation today is much more complex and costly than it was in the early years.