If you’ve indicated interest in mining, then you’ve been faced with the two options available: solo mining and joining a Bitcoin mining pool. There are so many reasons why people prefer to join a mining pool rather than mine alone. While mining with a group might seem like the best option, there are also some disadvantages attached to it. Before you opt to join a pool, here are some key factors you should know:
1. You’ll Share the Rewards
When you join a pool of miners, you can’t enjoy the rewards for mining alone. Keep in mind that you’ll have to share the rewards with other miners in the pool. However, when you mine solo, you’ll keep the rewards. At the same time, mining solo decreases your chances of getting a reward in the first place.
2. It’s a More Consistent Stream of Income
What might seem like a disadvantage of joining a mining pool is also an advantage. Although you’ll have to share the rewards, note that the chances of getting rewards are higher when you join a Bitcoin mining pool. Also, since the reward is usually shared among all the members in the pool, you’ll always get a reward. It may be smaller that what you’ll get when you mine solo, but it will be consistent.
3. The Pool is Limited to Utilizing 50% of the Hashing Power of Bitcoin Network
One of the laws of mining is that a single entity must not consume more than 51% of the hashing power of the network. Any pool or person who exceeds this number will wreak havoc on the network. If your mining pool comes near this threshold, some miners will be asked to leave the pool.
4. You May Not Make Profit Solo
Thanks to the currency difficult of mining Bitcoin, making a profit from solo mining is almost impossible. Only those with enough money to stock their garages with ASICs can pull it off. If you’re a beginner, who doesn’t have that kind of money, it’s better to join a Bitcoin mining pool.
Make sure you pick a reliable pool, and you actively contribute to the Bitcoin mining pool.