Bitcoin

Solo Bitcoin Miner Secures $160,000 Block Reward

On August 18, a solo miner managed to solve block 803,821, securing a remarkable 6.25 Bitcoin block reward valued at $160,000. This is a very rare event as lone miners have a lower chance of mining a block due to the increase in mining difficulty and this solo miner became the 277th solo miner in bitcoin’s history to achieve this. 

Solo Bitcoin Miner Makes History

The solo miner was able to pull off this remarkable achievement using the Solo CKpool mining service. The miner identified with the tag bc1q2za4ejga366sn288273pty8trasn5zs4y9hqg6 used an S17 Bitcoin Miner with a hash power of roughly 1 PetaHash which is way lesser than most BTC mining entities, as was speculated by Con Kolivas, the administrator of Solo CKpool.

Perhaps the most interesting thing about this development is that the miner achieved this remarkable reward when mining difficulty was almost at an all-time high of 52.39.

Normally, mining Bitcoin with just 1 PetaHash seems impossible compared to other BTC solo miners that were able to pull this off in the past who had hash rate capacity in exa-hashes.

It is almost impossible for a solo miner to solve an entire block on their own, due to the increased popularity of BTC mining and the persistent rise in the network hash rate and powerful mining equipment. 

BTC miners are required to input computational power to solve and add the next Bitcoin block to the network, which creates a valid block hash while using the computational power of multiple mining rigs.

However, since the miner was using the Solo CKpool, it allows miners with outdated or inefficient equipment to pool their mining power together, increasing their chances of solving a block, which is what happened here. In their case, this miner was able to retain 98% of the reward. 

Bitcoin price chart from Tradingiew.com

BTC price puts reward for a single block over $160,000 | Source: BTCUSD on Tradingview.com

The miner now joins two other solo miners who have been able to achieve this impressive feat in March and June this year using a Solo CKpool and is the third time this is happening so far in 2023.

Rise In Hashrate Triggers Surge In Mining Difficulty

Over the last few months, the Bitcoin hashrate has been rising rapidly, eventually hitting an all-time high in July. In response to this, the mining difficulty surged quickly and touched its own ATH in the same month.

By July 8, the Bitcoin mining hashrate was at 538.05 EH/s and difficulty surged to 53.9112T a few days later on July 12. However, since then, it has tapered off with hashrate dropping 26% to 424.76 EH/s and difficulty dropping around 3% to 52.39T.

Bitcoin mining difficulty

Mining difficulty rises to new ATH | Source: CoinWarz

Nevertheless, both the Bitcoin hashrate and difficulty are significantly higher compared to the start of 2023, which makes the solo miner’s achievement even more impressive. However, as hashrate and difficulty continue to rise, such occurrences are expected to be fewer as miners with large hashrates dominate the market.

In the end, the winner is the Bitcoin network which becomes stronger for it with the increased hashrate. It is also beneficial to BTC investors as a rise in hashrate suggests there is more interest in the digital asset and this can convert to higher prices for the cryptocurrency.

Featured image from Unsplash, chart from Tradingview.com



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