Swag Blog | Bitcoin mining: The definitive guide to getting the most out of 2023

If Bitcoin mining intrigues you and you’ve been wondering for a while what the possible earnings are from cryptocurrency mining, keep reading: in this article, we’ll explain everything you need to start this activity and its possible future developments!

  • What is Bitcoin Mining
  • How much can i earn mining crypto
  • Why SWAG?

What is Bitcoin Mining

Let’s start from the beginning, what is Bitcoin and what does the term mining mean?

Bitcoin mining, for those who don’t know, is the process of validating transactions on the Bitcoin blockchain. In practice, miners use their computing power to solve complex mathematical algorithms, thus creating new blocks of transactions and earning new units of Bitcoin as a reward.

What are bitcoins? What does it mean to be a miner and how does one become a miner? Let’s take a closer look at everything.

What are the Bitcoin

Bitcoin is a decentralized virtual currency whose transactions are recorded in a shared ledger called the blockchain. The functioning of this cryptocurrency is based on cryptographic protocols that allow for the generation of bitcoins and the validation of their transactions. Since there is no central authority that controls or manages this currency (like a government or central bank, as is the case with traditional currencies such as the Euro), it can be said that Bitcoin is a decentralized cryptocurrency. It is based on a peer-to-peer network and is therefore controlled by the users who use it: transactions take place without intermediaries. Every bitcoin transaction is recorded in a digital, shared, immutable, and decentralized ledger called the blockchain, which contributes to ensuring a high level of transaction security. These transactions are recorded on the blockchain only after being verified by all nodes in the network. These transactions are recorded on the blockchain only after being verified by all nodes on the network.

Birth of the Bitcoin

Bitcoin was created in 2009 by an anonymous inventor (or group of inventors) known by the pseudonym Satoshi Nakamoto, who developed an idea that he presented on the Internet at the end of 2008. By convention, if the term Bitcoin is used with a capital letter, it refers to the technology and the network, while if it is written in lowercase (bitcoin), it refers to the currency itself. Its symbol is ฿, and in the markets, it is also referred to as BTC or XBT.

How Bitcoin are created

“Bitcoin mining” is the process that ensures the correct functioning of Bitcoin and is the only method for introducing new currency into the market. Miners are individuals or companies that guarantee the accuracy, computational power, and operation of the blockchain, the technology on which cryptocurrencies are developed. Decentralized servers manage all operations of the cryptocurrency platform and have the ability to “mine” newly created bitcoins.

Become a Miner

Just like gold miners use shovels and pickaxes to extract gold, a Bitcoin miner needs two things: hardware and energy for mining.

Miners own computers that contribute their computing power and energy to the network of a cryptocurrency based on “proof of work” such as Bitcoin. The term Proof-of-Work (PoW) refers to the consensus algorithm at the heart of the Blockchain network.

The key necessary to complete the operation is composed of a random numerical value called “nonce” and an alphanumeric code called “hash”, which seals a block. This system allows the chain to be completed by making it immutable. Each transaction is both unique and secure. In fact, to modify a single operation, one would have to enter every block and alter the individual computers that are part of it at the same time.

The process of Bitcoin mining is therefore based on a real search, as the miner, using a computer and very high computing power, will try to find a resolution algorithm, intended as a procedure that involves creating the possible solutions that will lead to the correct hash string. The difficulty is that not only are a series of numbers added in the creation of the hash, but also the value of the hash of the previous block chain is added to it.

Technically, the computer receives a numerical information from another system or the network and, through millions of calculations performed in a second, elaborates the probable solution that leads to the hash that verifies the operation.

When this is found, the server will confirm the operation. In this case, not only will the block be definitively closed, but the miner will also be granted a certain number of cryptocurrencies as a contribution to the system’s functioning. This remuneration is called “block reward”.

How much can i earn mining crypto

Although it can be read around that Bitcoin mining is no longer as profitable as it used to be, mining digital gold still has strong advantages. The fixed reward is still very high, and in addition, miners receive a certain amount of fees on transactions that users make with Bitcoin every day.

To calculate the potential return from the mining process, some variables need to be considered, such as:

  • The cost of computer resources used: the cost of equipment for mining is high, as well as the cost of the necessary energy, and all expenses must be anticipated.
  • The cooling capacity of the mining structure: this depends on both the cooling system and the temperatures of the country where the mining is carried out.

Last but not least, the operation of the Bitcoin blockchain requires that only the miner who first manages to find the correct value that confirms the validity of a block of transactions will receive the reward.

Similarly, the Bitcoin mining procedure was designed by the creators of cryptocurrencies with the aim of making it increasingly difficult over time. This measure was adopted so that the increase in the quantity of currency available on the market would be in line with the value of the cryptocurrency itself and with its generation difficulty.

Considering these variables, you may be wondering how mining can still have strong advantages… here’s the answer: mining farms.

What is a mining farm

Miners have thought of creating mining farms, structures that allow them to combine the economic resources and knowledge of multiple miners and investors.

The term mining farm comes from English: mining farm, in this case, cryptocurrency mining.

A mining farm is a structure where a large number of devices are found performing cryptocurrency mining activities. Mining farms are often established in places where electricity is cheap and in cooled locations to prevent overheating of the components used for mining activities.


Swag mining is simple, transparent and, above all, integrated into a complete system that is suitable for the needs of every single user.

The machines available are located in several carefully selected countries based on specific criteria: technological advancement, energy costs, technical infrastructure, know-how, and security.

Thanks to the collaboration with major global partners in the crypto industry, there are already over 40000 Swag users who can benefit from high-performance and competitive machines, with limited management costs including installation, network connection, 24/7 production monitoring, ordinary and extraordinary maintenance, spare parts storage, and electricity supply

Swag’s offer is constantly growing and, above all, based on transparency and a turnkey service designed for the user’s needs. Swag offers the possibility to reduce rental costs by providing the user with either entire machines or fractions of them. With Swag, you can rent even just 1/32 of a machine, with a contract duration ranging from 1 to 3 years, with or without a warranty, at fixed or variable extraction rates.

What are you waiting for?

Open your account, choose the product that best suits your needs, whether it’s an entire machine or just a fraction, fixed or variable, and start now

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