Now that we’ve discussed all the different sources of revenue for miners, we can move on to the costs.
Let’s start off by discussing the fixed costs, and then get into the variable costs after.
As you all know, hardware is what allows users to mine, and the cost of hardware is fixed.
It’s a one-time purchase.
There are a few different types of hardware, ranging from generic computation devices to specialized mining hardware.
This logarithmically scaled graph here shows a quick overview of the growth of mining power produced by miners, which as you can tell has grown incredibly, several orders of magnitude since the start of Bitcoin.