Most Bitcoin miners are always indecisive about whether to mine solo or join a pool. In Bitcoin mining pools, miners follow a similar approach to solve cryptographic puzzles as one unit. They share computational resources over a network to increase the chances of finding cryptocurrency blocks and earning rewards. Which bitcoin mining pool is most profitable in 2023?
Let’s find out!
What is a mining pool?
A mining pool is a group of people who mine cryptocurrency. They combine their computing power and work together to discover new crypto blocks, earning rewards for their efforts during the mining round. These pools are made up of miners who operate on a blockchain network as a single entity. These miners contribute hash rates to the Nonce’s solution. The higher the hash rate, the more likely it is to mine blocks.
A mining pool distributes rewards based on how much processing power each individual contributes to the group. Individual miners may be required to provide proof of work for a pool mining duration or the time between mining new blocks in order to receive rewards.
Anyone interested in profiting from cryptocurrency mining can go at it alone or join a pool to increase their chances of winning. Because of the consistent payouts, pool mining remains the top choice for both novice and experienced miners.
Furthermore, anyone can join a pool regardless of the type of rig (mining device) they have, such as a graphical processing unit (GPU), a central processing unit (CPU), or an application-specific integrated circuit (ASIC).
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Bitcoin’s network design makes it the most popular yet challenging cryptocurrency to mine. The network increases the difficulty of puzzles proportionally to their popularity and decreases the difficulty when they are less popular. That’s why mining Bitcoin requires more computing power today than ever before.
What is a Bitcoin Mining Pool?
A bitcoin mining pool is a group of miners who pool their hash rates and work together to mine bitcoin blocks. Bitcoin miners are compensated for their hash rate contributions in the form of block rewards. Before distributing blocks to pool members, pool coordinators charge a small fee.
Small-scale miners join Bitcoin mining pools to earn small amounts of money over time. Some of them also join these pools in order to take advantage of Bitcoin’s merged mining. Merged mining allows you to use Bitcoin blocks that have been solved for other currencies that use similar proof algorithms.
How to Mine Bitcoin in a Pool
Bitcoin miners process billions of transaction hashes every second until they find one that meets a condition known as difficulty. Because the difficulty and hash are both expressed in bits, the condition simply requires that the hash be less than the difficulty.
Every 2016 Bitcoin block, or roughly every two weeks, the difficulty is adjusted to maintain a constant block time, which refers to how long it takes to find each new block while mining. The hash generated by miners serves as an identifier for each block and is made up of the data found in the block header.
The most important component of the hash is the Merkel root, another aggregated hash that encapsulates the signatures of all transactions in that block and the previous block’s unique hash. This entails that altering even the tiniest component of a block would change its expected hash and that of every following block too.
Nodes would immediately reject this incorrect version of the blockchain, preventing tampering with the network. The difficulty requirement ensures that Bitcoin miners put in real work – the time and electricity spent hashing through all possible combinations.
As a result, this explains why the bitcoin consensus algorithm is referred to as “proof of work,” distinguishing it from other types of block creation algorithms. Malicious entities have no choice but to recreate the entirety of their mining power in order to attack the network, which could cost millions, if not billions, of dollars.
Mining Bitcoin in a pool also entails using Bitcoin-designated hardware for better mining performance, like the ASIC, which can determine how quickly you mine. One bitcoin typically takes around 10 minutes to create, although this is only true for strong processors.
LEARN MORE: WHAT IS ASIC MINING? HOW TO START ASIC MINING
Why is Bitcoin Mining Profitable?
Mining with mining pools has numerous advantages, including the ability to mine profitably and consistently. As a result, using mining pools prevents digital asset mining from being solely controlled by large corporations and preserves the decentralization of electronic money.
Mining pools are also a centralizing force, but because they are made up of many decentralized entities, they are much more difficult to coerce. They must constantly compete to provide higher profits to their members than other mining pools. Members can quickly join a different pool with better practices if a mining pool charges high fees, acts in bad faith, or begins censoring transactions and is losing money. Nonetheless, Bitcoin network participants are working to ensure mining pool decentralization.
Which Bitcoin Mining Pool is Most Profitable in 2023 Summary
| Mining pool | Fees | Reward distribution method | Hash rate |
|---|---|---|---|
| Slush pool | 0-2.5% | Score | 9.54 EH/s |
| Antpool | 0% on PPLNS, 4% on PPS+, | PPS+, PPLNS | 24.04 EH/s |
| F2pool | 2.5% | PPS+ | 30.60 EH/s |
| BTC.com | 0.015 | Advanced FPPS | 161.44 EH/s |
| ViaBTC | 2% on PPLNS, 4% on PPS | PPS and PPLNS | 20.37 EH/s |
Which Bitcoin Mining Pool is Most Profitable in 2023
There are several Bitcoin mining pools available, and here are some of the highest-paying bitcoin mining pools to keep an eye out for:
Braiins Pool
Braiins Pool, which was announced in 2010, was the very first Bitcoin mining pool, and it undoubtedly paved the way for many other mining pools to follow.
Braiins Pool, founded by SatoshiLabs, is one of the largest Bitcoin mining pools, with over 15,000 people mining bitcoin. Marek Palatinus (aka Slush) is the CEO; the company is based in the Czech Republic and uses a core-based system to discourage pool hopping.
Braiins Pool claims a 2% commission on all block-solving rewards. The dashboard of SlushPool is extremely user-friendly and provides excellent detail with regular updates. Braiins Pool is regarded as one of the best bitcoin mining pools.
Antpool
Bitmain Technologies operates Antpool, another large Chinese Bitcoin mining pool. Antpool has the advantage of allowing you to choose between PPLNS (0% fee) and PPS+ (4% fee from the block reward and 2% from mining fees).
Those who are new to Bitcoin mining will appreciate the user-friendly interface. Earnings and hash rates are clearly displayed on the dashboard. There are also a number of security features available, such as two-factor authentication, email alerts, and wallet locks.
LEARN MORE: WHAT IS A HASH IN BLOCKCHAIN? A COMPLETE GUIDE!
Aside from Bitcoin, it can be used to mine BCH, LTC, ETH, ETC, ZEC, DASH, and a variety of other cryptocurrencies and tokens. Bitcoin mining generates $0.3405 per tera hash per day, with the default minimum payment being anything above 0.001 BTC.
F2Pool
F2Pool was founded in 2013, making it one of the first pools for mining Bitcoin and other cryptocurrencies. F2Pool charges a 2.5% fee for its PPS+ reward system, which is a bit on the high side.
The pool can be used to mine multiple cryptocurrencies on multiple blockchains at the same time, a process known as “merged mining.” Other coins that can be mined include Litecoin (LTC), Ethereum (ETH), and Zcash (ZEC), among others. The minimum withdrawal is 0.005 BTC, and there is a daily automatic payout.
Mining Bitcoin with the pool can also earn you free coins. It has an English interface, unlike some Chinese Bitcoin mining pools. The layout is straightforward, with the information presented in a clear and concise manner.
BTC.com
Bitmain Tech, the company behind Antminer ASICS, manages the mining pool. BTC.com is well-known for its wallet and its own blockchain explorer. BTC.com has been around for quite some time before opening a pool in 2016.
BTC.com has its own payment method, FPPS, which, like PPS+, includes TX fees along with the block reward in payouts. BTC.com charges 1.5% in mining fees and has a payment threshold of 0.001 BTC.
It provides transparent ranking statistics on the tokens mined by the user, their power consumption, hash rates, electricity price, fee ratio, daily profit, and 24-hour returns.
ViaBTC
ViaBTC, one of the largest Bitcoin mining pools, was founded in 2016 and is headquartered in China. It also allows users to mine Litecoin, Bitcoin Cash, and over ten other cryptocurrencies. Its mining farms vary in price depending on the weather, but there are also yearly price options. You can mine using ASICs, CPUs, GPUs, or cloud hash rates.
Conclusion
Which Bitcoin Mining Pool is Most Profitable? Well, to begin mining, select the best cryptocurrency mining pools for beginners and do your homework before joining a pool. Use your computer’s processing power to collaborate with other miners to discover your first block. After you have mined the first block, you should use cryptocurrency custody software to store and secure your crypto assets.
