Free, comprehensive Bitcoin mining education for Australians. From absolute beginner to advanced topics, we've got you covered.
Everything you need to know before you begin mining
Bitcoin mining is the process of using specialized computers to validate transactions and add new blocks to the Bitcoin blockchain. Miners compete to solve complex mathematical puzzles, and the winner gets to add the next block and receive newly created Bitcoin as a reward.
This process serves two purposes:
Before investing in mining equipment, ask yourself:
Bitcoin mining is NOT a get-rich-quick scheme. It's a competitive, capital-intensive industry with razor-thin margins.
At standard Australian residential electricity rates ($0.25-0.35/kWh), most mining operations will lose money. Profitable mining typically requires:
Read this page thoroughly
The technical process explained simply
Users broadcast Bitcoin transactions. Unconfirmed transactions sit in a "mempool" waiting to be included in a block.
Miners select transactions from the mempool and assemble them into a candidate block, along with a special coinbase transaction (their reward).
Miners race to find a "nonce" that makes the block's hash meet the difficulty target. This requires trillions of attempts per second.
The first miner to find a valid hash broadcasts the block. They receive the block reward (3.125 BTC) plus all transaction fees.
Every ~2 weeks, the network adjusts difficulty to maintain ~10 minute block times. If more miners join, difficulty increases - reducing everyone's rewards.
Every ~4 years, the block reward is cut in half. The most recent halving (April 2024) reduced rewards from 6.25 to 3.125 BTC.
Using Australia's abundant sunshine for near-zero electricity costs
Australia has some of the best solar resources in the world. For Bitcoin miners, this presents an opportunity to dramatically reduce or eliminate the #1 operating cost: electricity.
At $0.25/kWh, an Antminer S21 Pro costs ~$21/day in electricity. At $0.00/kWh (solar), that's $21/day in savings - or $7,665/year per unit.
Use solar during the day, grid at night. Export excess for credits. Best for partial savings.
Store solar power for 24/7 mining. High upfront cost but eliminates grid dependence.
Only mine during peak solar hours. Lower production but zero electricity cost.
To run a single ASIC miner (~3.5kW), you'd need approximately:
* Varies significantly by location, installer, and configuration
Understanding your ATO obligations as a Bitcoin miner
This is general information only, not tax advice. Consult a qualified tax professional for your specific situation. Tax laws change frequently.
The ATO distinguishes between mining as a hobby and mining as a business. The classification affects how you're taxed:
If mining is carried on in a business-like manner (scale, commercial intent, regular activity):
If mining is a hobby (small scale, no commercial intent):
For business miners, the AUD value at the time of receipt is taxable income.
Capital gains tax applies on any gain from the cost base (value when received for business, $0 for hobby).
Treated as a disposal - CGT applies.
The ATO requires you to keep records. Track:
Many crypto tax software tools can help automate tracking.
Common terms explained
Application-Specific Integrated Circuit. Hardware designed solely for Bitcoin mining. Much more efficient than GPUs.
The number of calculations per second. Measured in TH/s (terahashes), EH/s (exahashes). Higher = more mining power.
A measure of how hard it is to find a valid block. Adjusts every ~2016 blocks to maintain 10-minute block times.
The newly created Bitcoin awarded to miners. Currently 3.125 BTC per block (after 2024 halving).
A group of miners who combine hashpower and share rewards. Provides more consistent, smaller payouts vs. solo mining.
Efficiency rating. How much energy is used per unit of hashrate. Lower is better. Critical metric for profitability.
The first transaction in every block, which creates new Bitcoin and pays the miner. The origin of all Bitcoin.
Event every ~210,000 blocks (~4 years) where the block reward is cut in half. Controls Bitcoin's supply schedule.
Pool payout method. Miners paid for each valid share submitted, regardless of whether the pool finds a block.
Pay Per Last N Shares. Pool payout based on your contribution over recent shares. More variance but potentially higher rewards.
The "waiting room" for unconfirmed transactions. Miners select transactions from here to include in blocks.
A share submitted after a block was already found. Not rewarded. High latency to pool = more stales.
Deep dive into ASIC miners, specifications, and what to look for when purchasing.
Read Guide >Compare pools, understand payout methods, and find the best option for Australian miners.
Read Guide >Learn what freshly mined Bitcoin is and why provenance matters.
Read Guide >Our team has been mining since 2011. We're happy to help.