Bitcoin mining is the process of verifying and adding transaction records to the public ledger (the blockchain). The mining process involves compiling recent transactions into blocks and trying to solve a computationally difficult puzzle.
The participant who first solves the puzzle gets to place the next block on the blockchain and claim the rewards. The rewards, which incentivize mining, are both the transaction fees associated with the transactions compiled in the block as well as newly released bitcoin. (Related: How Does Bitcoin Mining Work?).
To understand how much you can make from mining Bitcoin, you first need to calculate your costs. This includes your initial investment in hardware, electricity costs and any other associated expenses.
Once you have your total costs, you can use a mining profitability calculator to determine how long it will take for you to make a return on your investment.
The amount of money you can make from mining Bitcoin will also depend on the price of Bitcoin. If the price of Bitcoin goes up, then you will be able to make more money from mining because your earnings will be worth more.
Conversely, if the price of Bitcoin goes down, then you will make less money from mining.
In conclusion, there is no easy answer when it comes to how much money you can make from mining Bitcoin. It depends on a number of factors including your investment costs, electricity costs and the price of Bitcoin.
However, if you are willing to put in the work and invest in quality hardware, then it is possible to make a good return on your investment.