Bitcoin mining is inherently problematic due to its reliance on random outcomes for block discovery, making it difficult for individual miners to predict earnings. With only 144 blocks found daily, a miner requires about 1.2% of the network's hash rate to ensure steady revenue, necessitating substantial capital investment. Smaller miners face the risk of bankruptcy due to ongoing operational costs without guaranteed payouts. To alleviate this, pool mining allows multiple miners to collaborate, distributing rewards based on individual contributions, thereby stabilizing income and reducing financial strain.
Bitcoin mining is highly unpredictable, requiring substantial investments of capital for consistent payouts, making it challenging for smaller miners to operate profitably.
Without a considerable hash rate of approximately 1.2% of the total network, miners face significant variance in their revenue, highlighting the need for pooling resources.
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