Bitcoin Mining - How to solo lottery mine Bitcoin at Home

What is Bitcoin? Bitcoin is (native internet money) digital money, visible on a shared public ledger called the blockchain. In order to solo lottery mine bitcoin we first need to make sure we understand what it is and how it works. It's kept secure and honest by a network of computers, nodes that store the blockchain and miners that add new transactions to it. No banks, no middle men or 3rd parties, no central banks need to be involved.

Think of Bitcoin as digital money that doesn't need banks or governments to work. It's like the cash of the internet, secure, global, and controlled by no single person or company. It was launched in 2009 by someone (or a group) using the name Satoshi Nakamoto, who wanted a way for people to send money directly to each other without middlemen or 3rd party involvement.

Bitcoin lives on a digital ledger called the blockchain. Think of the blockchain as a giant, public digital ledger that records every Bitcoin transaction ever made. This digital ledger isn't stored in one place, it's shared across thousands of computers worldwide, called nodes which makes it distributed and nearly impossible to stop.

You manage Bitcoin using a wallet, a piece of software or an app that holds your private keys (like secret passwords). These private keys let you spend your Bitcoin and sign transactions, who ever controls the keys, controls the coins and as they say "not your keys, not your coins"! Take extra care with your private keys or mnemonic phrase, you don't want to lose your coins.

Lottery Miner Guides & Tools

Bitcoin ASIC Miner ROI Calculator :: Building a DIY open-source Bitaxe 601 Gamma from scratch :: Solo Lottery Bitcoin Mining Equipment :: Home Electricity Generation Options for Bitcoin Mining - Basic :: BTC to USD Calculator :: Unknown Blocks Mined :: Solo Lottery Mining Probability Calculator :: How to Setup a Bitcoin Node :: Bitaxe 601 ASIC, Bitcoin Node & Public Pool Setup Guide :: Bitcoin Network Stats :: Electricity Usage Calculator :: Bitcoin Lottery Miners: Options, Hashrates, and Costs :: Home Electricity Generation Options: Scaled for Bitcoin Mining :: Bitcoin Mining - How to solo lottery mine Bitcoin at Home :: Guide: Setting Up a FutureBit Apollo BTC Full Node for solo Lottery Bitcoin Mining with Bitaxe 601 Miners :: Step-by-Step Guide to Install a Bitcoin Node on Ubuntu :: Step-by-Step Guide to Install Public Pool Software on Ubuntu :: Bitcoin and URL QR Code Generator

How Does Bitcoin Work?

Bitcoin is software people use to send, receive and verify payments on the internet:

Sending Bitcoin: When you send Bitcoin to someone, that transaction gets broadcast to the Bitcoin network (all those computers running the software).

Verification: Special computers called miners check the transaction to make sure it's legit, like ensuring you have enough money and arent double spending it.

Adding to the Blockchain: Once verified, the transaction gets bundled with others into a block (like a page in the notebook). Miners lock this block into the blockchain using math and computer power, making it permanent.

No Centralized Control: Because thousands of nodes keep copies of the blockchain, no single person or group can change it unless most agree which makes Bitcoin distributed and secure.

Bitcoin works because of the collective effort of miners, nodes, developers and the people running the software and using Bitcoin. Bitcoin transactions are verified by a network of computers, or "miners," using a algorithm hashing process called "Proof of Work" (PoW). Mining creates new Bitcoin and secures the network, while nodes keep everything honest. By running your own node and mining to it, you're not just chasing rewards, you're contributing to and participating in building a decentralized future, one block at a time.

Why Run a Node?

A node is just a computer running Bitcoin software that holds a full copy of the blockchain and checks the rules. Running a node is like being a referee in the Bitcoin game. Here's why it's important:

Verification: Nodes make sure miners follow the rules (e.g., no fake transactions or double-spending). Without nodes, miners could cheat.

Independence: When you run a node, you don't have to trust anyone else's version of the blockchain, you see it for yourself.

Decentralization: The more nodes there are, the harder it is for any one group to control Bitcoin. It stays a "people's money" instead of a corporate or government tool.

You don't need a supercomputer just a regular PC, laptop or even a Raspberry Pi with some storage (about 1 GB in 2025) and an internet connection. Ideally if you're setting up a new node now you'd want to use a 2 TB drive, this would allow you enough space to keep the node setup for years without having to upgrade the drive due to insufficient storage space.

Running a Bitcoin Node: The Technical Details

A Bitcoin node is a computer running the Bitcoin Core software (or similar) that holds a full copy of the blockchain and enforces the network's rules. Here's what it does and how to set it up:

What a Node Does:

Stores the Blockchain: It keeps every Bitcoin transaction ever made, about 650 GB of data as of April 2025. This grows slowly over time as more blocks are added to the blockchain.

Validates Everything: It checks every transaction and block against Bitcoin's rules (e.g., no double-spending, correct signatures). If something's fishy, it rejects it.

Shares Data: It gossips with other nodes, passing along transactions and blocks so everyone stays in sync.

Serves Miners: If you mine, your node feeds your mining rig the latest blockchain data and accepts your solved blocks.

Steps to Set Up a Node

Get Hardware: You need a computer with:
- At least 1 TB of storage (SSD is best, allows for faster blockchain syncing).
- 2-4 GB of RAM.
- A decent internet connection (10-20 Mbps, no strict data caps).
- Examples: An old laptop, a Raspberry Pi 4 with an external drive, or an inexpensive desktop.
Download Bitcoin Core: Grab the free software from (bitcoin.org/en/full-node). It's the official Bitcoin software program, open-source and safe.

Sync the Blockchain: Run Bitcoin Core. It'll start downloading the entire blockchain from other nodes. This takes 1-3 days the first time, depending on your speed. After that, it just grabs new blocks (a few MB daily).

Configure It: Open the app or edit the bitcoin.conf file:
- Set a username and password for security (e.g., rpcuser=me, rpcpassword=secret123).
- Allow connections: Add rpcallowip=127.0.0.1 (local only) or your miner's IP if separate.
- Optional: Open port 8333 on your router if you want to help other nodes connect (not required for mining).
Run Bitcoin: Keep it online. It uses about 5-10 GB of bandwidth monthly after syncing and can vary greatly.

Technical Details:

Data Format: The blockchain is stored as a series of files (.blk files) with transactions in a format called UTXO (Unspent Transaction Outputs) basically a list of who controlls what Bitcoin.

Consensus Rules: The node checks things like block size (max 4 MB), proof-of-work validity, and that the total Bitcoin supply doesn't exceed 21 million.

Network Role: It connects to 8-12 other nodes by default, forming a peer-to-peer network with no central server, just chaos that works.

The Role of Nodes in Decentralization

Nodes are the backbone of Bitcoin's decentralization. A Bitcoin node is any computer running the Bitcoin software that validates transactions and blocks, maintaining a copy of the blockchain. Nodes play a critical role:

Transaction Validation: Nodes independently verify every transaction and block against Bitcoin's rules, preventing invalid or fraudulent activity.

Network Integrity: By broadcasting transactions and blocks to other nodes, they ensure the network remains synchronized and resilient.

Decentralized Governance: More nodes mean more independent actors enforcing the protocol, reducing reliance on any single point of control.

Five Reasons to Run a Node (At the Very Least): Even if you don't mine, running a node is a simple yet powerful way to contribute to Bitcoin's decentralization:

Strengthen Network Security: Your node helps validate the blockchain, making it harder for bad actors to propagate fake transactions or blocks.

Protect Your Own Transactions: By running a node, you can verify your own Bitcoin transactions without trusting third-party services.

Support Censorship Resistance: More nodes make it tougher for any entity to censor transactions, preserving Bitcoin's freedom.

Educational Value: Running a node lets you learn Bitcoin's inner workings firsthand, deepening your understanding of the system.

Uphold Bitcoin's Vision: Every node reinforces the peer-to-peer ethos Satoshi Nakamoto envisioned, keeping power in the hands of users.

Running a Node Without Mining: You can run a node without mining to contribute to decentralization. This involves:

Passive Support: You validate and relay transactions/blocks but don't create new blocks or earn rewards.

Lower Cost: Requires minimal hardware (e.g., a Raspberry Pi) and electricity compared to mining.

Limited Influence: You enforce rules but don't directly secure the network via hashrate or produce blocks.

Running a Node and Mining to It (Solo Mining): Combining a node with solo mining amplifies your role:

Active Contribution: You validate transactions and compete to add new blocks, earning rewards if successful.

Higher Cost: Requires significant hardware (ASIC miners) and electricity, plus node maintenance.

Greater Impact: You directly secure the network with hashrate, produce blocks, and maintain full control over your mining decisions (e.g., transaction selection).

Full Sovereignty: By mining to your own node, you avoid relying on third-party nodes or pools, enhancing decentralization.

Why Participate and Keep Bitcoin Decentralized?

It's critical to participate in and contribute to the Bitcoin network to maintain its decentralization and distribution.

Without widespread participation, whether through running nodes, solo mining, or both, Bitcoin risks becoming centralized, undermining its core promise of a trustless, censorship-resistant system. Here's why this matters:

Countering Centralization: Large miners and mining companies often dominate pooled mining, concentrating hashrate and block production. Small miners and node operators dilute this power, ensuring no single entity can dictate Bitcoin's future.

Competition Concerns: Larger miners and mining companies may not like small solo miners because they introduce competition. Small miners, especially those mining to their own nodes, reduce the dominance of big players by adding independent hashrate. This threatens the profit margins and control of large operations, who prefer predictable pool-based revenue over the unpredictability of more solo miners vying for blocks.

Preserving Freedom: Decentralization protects Bitcoin from government overreach, corporate influence, or malicious attacks. Every participant strengthens this shield.

Community Ownership: Bitcoin thrives when everyday users, not just corporations actively shape its network, keeping it a people-powered currency.

How is Bitcoin Mined?

Mining is how new Bitcoin gets created, added into circulation and how transactions get added to the blockchain. It's like a global lottery, anyone can join with a massive reward every 10 minutes. Here's how it works:

Miners use powerful computers to basically make guesses on a puzzle until they're correct. These guesses are like puzzles and are very hard to guess, but easy to check once the puzzle has been solved.

When a miner guesses the puzzle, they get to add a new block of transactions to the blockchain. As a reward for their work, they earn newly minted Bitcoin (currently 3.125 BTC per block as of April 2025) plus small fees from the transactions in that block.

The puzzle's difficulty adjusts every 2016 blocks or about everytwo weeks to keep blocks coming along approximately 10 minutes on average, no matter how many miners are playing the Bitcoin Lottery.

Miners from all over the world compete to win the Bitcoin lottery about every ten minutes on average for the next block reward, 24 hours a day, 7 days a week. Miners are like the security guards of the Bitcoin network, their proof-of-work (PoW) work keeps the network honest, reliable and running.

How Bitcoin Mining Works: The Technical Details

Mining is how new blocks get added to the blockchain and new Bitcoin gets created. It's a race to solve a math puzzle using computer power. Here's the deeper dive:

The Mining Puzzle:

Miners compete to find a nonce (a random number) that, when combined with the block's data (transactions, previous block hash, etc.), produces a hash (a jumbled string) starting with a certain number of zeros.

The hash function is SHA-256, run twice (SHA-256d). Example:
- Input: block data + nonce = 12345
- Output: 00000000000000000001f... (if it has enough zeros, you win the Bitcoin Lottery).
The number of zeros required is set by the network difficulty, which adjusts every 2016 blocks (~2 weeks) to keep block time at 10 minutes.

Steps in Mining:

Get a Block Template: Your mining software asks your node for a "block template", a list of unconfirmed transactions plus a header (previous block hash, timestamp, etc.).

Hash Away: Your miner (usually specialized hardware called an ASIC) tries billions of nonces per second:
- Hash = SHA-256(SHA-256(block header + nonce)).
- If the hash is below the target (lots of zeros), you've solved it!
Submit the Block: If you win, your miner sends the solved block to your node, which checks it and broadcasts it to the network.

Reward: If accepted, you get 3.125 BTC (post-2024 halving) plus transaction fees usually around 1-2% (e.g., 0.1-0.5 BTC per block in 2025).

Hardware:

ASICs: Devices like the Bitmain Antminer S19 (110 TH/s, 3250W) dominate mining. They're built for SHA-256 and nothing else.

Power: A single ASIC might use $5-10/day in electricity, depending on your cost (e.g., $0.10/kWh).

4 Strategies People use to Mine Bitcoin in 2025

Mining isn't one-size-fits-all. Here are the 4 main ways people do it, explained simply:

1. Pooled Mining

You team up with thousands of other miners in a "pool". Everyone works together to solve the puzzle, and when the pool wins a block, the reward gets split based on how much computing power you chipped in. You connect your ASIC to a pool's server (e.g., Braiins). The pool gives you a simpler puzzle (a "share") tied to the main block. You submit shares, and the pool submits the block if it wins.

Pros: You get small, steady payouts (like a paycheck) instead of waiting forever for a big win. Great for beginners or small miners.

Cons: The pool operator takes a fee (1-2%), and you rely on them to be honest and pay you. You're not fully in control.

Example: It's like joining a lottery pool group, your odds of winning go up, but you have share the prize.

Tech: Uses Stratum protocol. Your hashrate contributes to the pool's total (e.g., 50 EH/s).

Reward: Proportional, e.g., 0.00001 BTC/day for 110 TH/s in a big pool.

2. Solo Lottery Mining to Someone Else's Node (with Solo Reward)

You point your miner to a public node (e.g., a friend's or a public pool service). It's like solo mining, but you don't run the node. You mine alone, using your own computer power, but you connect to someone else's node to get the blockchain data.

If you solve a block, you keep the full reward (3.125 BTC + fees in 2025!). Solo Pools usually take a 1-2% fee for running the pool, web.public-pool.io has no fees.

Pros: You don't split the reward, it's all yours if you win. No pool fees either.

Cons: Winning is rare, like hitting the jackpot in a solo lottery. You also trust someone else's node, so if they're dishonest or go offline, you might miss out.

Example: It's like fishing alone in a big lake using someone else's boat. If you catch a whale, it's yours, but you depend on their boat staying afloat.

Tech: Same as solo, but you rely on their RPC connection. If their node lags or cheats, you're sunk.

Reward: Full 3.125 BTC + fees if you win. Minus pool fees, unless you use web.public-pool.io, they have 0% fees.

3. Solo Lottery Mining to Your Own Node

You mine alone, run your own node and mine to it. Your miner talks directly to your Bitcoin Core instance, no middleman, to get blockchain data and submit your solved blocks. If you win the lottery, the full reward is yours.

Pros: Total control, no trusting others. You keep the whole reward. Plus, you help Bitcoin stay decentralized (more on that below).

Cons: Still a long shot to win a block unless you have serious computing power. It takes effort to set up and maintain a node.

Example: It's like fishing in your own lake with your own boat. You're the boss, and any treasure you find is 100% yours.

Tech: Full control over block template (you pick transactions, maximizing fees). No latency or trust issues.

Reward: Same as above, full jackpot.

Originally I was only going to included these 3 strategies because for years they've been the only versions of mining really available. However, I had joined a conversation on X recently and was introduced to a 4th version, yep there's a 4th. I'm including it because it's unique, i think it's a cool twist and the Founder of the Pool told me about it so shoutout to Luke Dashjr of Ocean.xyz.

Now this version is unique and it's done with a new Bitcoin mining protocol called DATUM (Decentralized Alternative Templates for Universal Mining), it's almost the opposite of solo pooled mining, you can read more about it here: ocean.xyz/docs/datum

4. Solo Mining with Pooled Rewards via DATUM

You mine for pooled rewards, run your own Bitcoin node and the DATUM gateway but mine to a public pool that has a DATUM gateway for you to connect. Your miner talks directly to your Bitcoin instance (Knots is recommended over Core for DATUM because it has more block template controls), no middleman, to get blockchain data and submit your solved blocks. If you win the lottery, you're in a pool so the reward is split.

Pros: You get small, steady payouts (like a paycheck) instead of waiting forever for a big win. Great for beginners or small miners.

Cons: Using DATUM you can create your own block templates using your own Bitcoin node. However It takes some effort to set up and maintain a node and DATUM Gateway.

Example:The main advantage to this is the ability to use your own node to create block templates but pool rewards, reducing risk of not hitting a block because you're still receiving something but you have more control than a typical public pool because of the block creating ability.

Tech: Full control over block template (you pick transactions, maximizing fees). No latency or trust issues other than ensuring the DATUM Gateway to the pool is operational.

Reward: Proportional, e.g., 0.00001 BTC/day for 110 TH/s in a big pool.

Solo Mining to Your Own Node is arguably the Best option for the Bitcoin network because it helps decentralize the block production and distributes the hashrate.

Solo mining to your own node isn't just about the money, it's about power and freedom. Here's why it's great:

Full Control: You don't rely on anyone else's node or pool. Your setup, your rules.

Big Wins: If you solve a block (say, worth $240,000 at $80,000/BTC), it's all yours, no sharing.

Helping Bitcoin: You're not just mining, you're strengthening the network by running a node and mining directly to it.

Block Production: Pools often control 50-70% of blocks (e.g., Foundry USA, AntPool). Solo miners spread this out. If you win, your node broadcasts a block, not a pool's.

Hashrate Distribution: Your 110 TH/s isn't much, but thousands of solo miners add up, diluting pool dominance (e.g., 800 EH/s split across more players).

Node Power: Your node validates blocks and transactions, resisting bad actors. More nodes = more eyes on the network.

Pooled vs Solo Bitcoin Mining: Understanding the Differences

Bitcoin mining can be approached in two primary ways: pooled mining and solo mining. Each method has its own characteristics, benefits, and implications for miners and the Bitcoin network. Participating in and contributing to Bitcoin is vital to keeping it decentralized, secure, and true to its original vision.

Key Differences:

Aspect	Pooled Mining	Solo Mining
Definition	Miners combine their computational power in a pool to find blocks together	A single miner uses their own hardware to find blocks independently
Hashrate Distribution	Concentrates hashrate in large pools, potentially centralizing power	Distributes hashrate across individual miners, promoting decentralization
Block Discovery	Pool finds blocks more frequently, shared among participants	Individual finds blocks rarely, keeps entire reward
Reward Expectations	Steady, smaller payouts proportional to contributed hashrate	Infrequent but large payouts (full block reward + fees)

This covers traditional Solo vs. Pooled mining in the classical sense. Now we have a few versions that are hybrids but people still classify them as pooled and that's fine. It's semantics really, just terminology people throw around but people like to look at it very technically which I understand. The way I see it, in the grand scheme of things everyone contributing is still helping in some way, however minimal it may appear.

Benefits of Solo Mining for the Network

Beyond equipment costs, solo mining offers significant advantages to Bitcoin's ecosystem:

Decentralization: By spreading hashrate across many individual miners rather than concentrated pools, solo mining reduces the risk of any single entity controlling too much of the network.

Network Resilience: More solo miners mean more independent nodes verifying transactions, making the network harder to attack or manipulate.

Incentive Alignment: Solo miners are fully invested in Bitcoin's success, as their rewards depend on the network's health and value.

Pooled mining offers stability and frequent rewards but risks centralizing block production, creating vulnerabilities like censorship and attacks. Solo mining, though less predictable, supports Bitcoin's decentralization, enhances security, and appeals to those valuing independence. Running a node, mining or not, is a vital act of participation that keeps Bitcoin decentralized. With large miners potentially threatened by small competitors, every individual's contribution, from nodes to solo mining, ensures Bitcoin remains a decentralized, resilient network owned by its users.

Reward Expectations Explained, Bitcoin Lottery Mining Mentality

In pooled mining, miners receive regular payouts based on their share of the pool's hashrate when a block is found. This provides a more predictable income stream, though individual rewards are smaller.

In solo mining, a miner must find an entire block themselves to receive a reward (currently 3.125 BTC plus transaction fees as of 2025, post-halving). This is much rarer but yields the full reward when successful.

People choose solo lottery mining Bitcoin for several reasons:

Independence: Solo miners enjoy full control over their operations without relying on pool operators.

Big Win Potential: The allure of hitting a "jackpot" with a full block reward drives some miners.

Ideological Commitment: Many solo miners believe in Bitcoin's decentralized ethos and see solo mining as a way to support it.

Hobbyist Appeal: For some, the challenge and rarity of success make it a rewarding pursuit beyond profit.

Centralized vs Decentralized Block Production

Centralized Block Production (Pooled Mining): When a few large mining pools dominate block production, it creates risks for Bitcoin:

Single Point of Failure: If a major pool is compromised, hacked, or shut down by authorities, a significant portion of the network's hashrate could disappear, disrupting block production.

Censorship Risk: Large pools could collude or be pressured to censor transactions, undermining Bitcoin's censorship resistance.

51% Attack Threat: If a single pool or a coalition controls over 50% of the hashrate, they could potentially double-spend coins or halt the network, eroding trust.

Reduced Sovereignty: Miners in pools delegate control to pool operators, who decide which transactions to include, weakening individual miner autonomy.

Decentralized Block Production (Solo Mining): Spreading block production across many solo miners strengthens Bitcoin:

Enhanced Security: No single entity can easily dominate, making attacks like 51% far harder to execute.

Censorship Resistance: Independent miners are less likely to coordinate censorship, preserving Bitcoin's open nature.

Network Stability: A distributed hashrate ensures the network remains operational even if some miners fail or are targeted.

True Decentralization: Solo mining aligns with Bitcoin's vision of a peer-to-peer system where no central authority holds power.

Mining to Your Own Node Helps Bitcoin Stay Decentralized

Bitcoin's strength comes from being decentralized, no one controls it. Here's how solo mining to your own node helps:

Spreads Block Production: When lots of people solo mine to their own nodes, blocks don't just come from big pools or companies. It's like having many small factories making Bitcoin instead of one giant one. If big pools dominate, they could team up and mess with the rules. Pools often control 50-70% of blocks (e.g., Foundry USA, AntPool). Solo miners spread this out. If you win, your node broadcasts a block, not a pool's.

Distributes Hashrate: Your mining power (hashrate) adds to the network's total, but it's under your control, not a pool's. More solo miners mean the hashrate is spread out, making it harder for any group to overpower Bitcoin. Your 110 TH/s isn't much, but thousands of solo miners add up, diluting pool dominance (e.g., 600 EH/s split across more players).

Supports the Network: Your node validates blocks and transactions, keeping miners honest and resisting bad actors. The more nodes, the tougher it is to cheat or attack Bitcoin. More nodes = more eyes on the network.

Think of it like a town where everyone grows their own food instead of relying on one big supermarket. If the supermarket shuts down, people still eat. Solo mining to your node keeps Bitcoin self-sufficient.

As an example if 10,000 people solo mine with 110 TH/s each to their own nodes, that's 1.1 EH/s, 0.18% of the network. They'd collectively win ~1 block every 4 days, keeping power decentralized.

Benefits Anyone Can See:

For You: Solo mining to your own node could make you rich if you hit a block, and you're the boss of your setup. Total independence, potential for a $240,000+ payout (at $80,000/BTC).

For Bitcoin: It keeps the network free, fair, and hard to break-good for everyone using it. Less pool control, more resilience. If pools collude (e.g., censor transactions), solo miners keep the network honest.

For the Future: You learn Bitcoin and become a Bitcoiner! Hands on node syncing, ASIC building and tweaking, and the Bitcoin blockchain benefits. It's a vote for a world where money isn't controlled by banks or governments.

Bitcoin is digital cash that works because of miners and nodes. Mining creates new Bitcoin and secures the network, while nodes keep everything honest. Pooled mining gives steady rewards, solo mining to someone else's node offers big wins with some trust, and solo mining to your own node gives you freedom and helps the Bitcoin network stay resilient. By running your own node and mining to it, you're not just chasing the Bitcoin lottery, you're helping contribute to and participate in the Bitcoin network.

Running a node is like being a Bitcoin librarian, storing all the data, making sure it's valid and checking the rules. Solo mining to it is like panning for gold with your own tools. It's technical but doable: sync a node (days), plug in an ASIC (hours), and mine (forever, with luck). You help Bitcoin stay free, and maybe strike it rich.

Solo Lottery Mining to Your Own Node: Step-by-Step Overview

Here's a 4 step process on how you could lottery mine solo to your own node, with technical details:

Run Your Node: As above, fully synced and configured.

Get Mining Hardware: An ASIC miner (e.g., Antminer S19, ~$2,000 used in 2025).

Connect Miner to Node:
- Install mining software (e.g., CGMiner, free and open-source).
- Point it to your node's IP and port (e.g., http://192.168.1.100:8332).
- Use your node's RPC username/password in the config.
Start Mining: The miner requests block templates from your node and starts hashing.

Your node builds a block with transactions from its memory pool (unconfirmed transactions it's seen).
Your miner hashes the block header, tweaking the nonce.
If you solve it (odds are slim, e.g., 110 TH/s vs. 600 EH/s network means ~1 in 5.5 million chance per block), your node submits it.
Reward goes to a Bitcoin address you set in the block template, yours alone.

Bitcoin mining is a multi-step process where everything needs to be working in harmony and this will give you an idea of what's involved in getting started. A detailed guide for installing and running your own Bitcoin node with public pool software and the bitaxe 601 is below.

What is Solo Lottery Mining Bitcoin?

Solo lottery mining is when you mine Bitcoin independently or in a solo pool (hash to someone elses node), using a small device like the Bitaxe, with the intention of receiving the full block reward and not splitting it. For this example we will use the bitaxe because it's completely open source and you can build it yourself.

The Bitaxe 601 is a compact, open-source ASIC miner with a hashrate of 1.2 TH/s (terahashes per second) and a power draw of 20 watts. You're trying to solve a block on your own, and if you succeed, you claim the full reward, 3.125 BTC plus fees (around $240,000 at $80,000/BTC in 2025). It's called "lottery mining" because the odds are stacked against you, but the payout is huge if you win.

Why is Solo Mining Bitcoin Like a Lottery?

Imagine solo Bitcoin mining as a giant lottery:

Your Ticket: The Bitaxe 601's 1.2 TH/s is your lottery ticket, how many guesses it makes per second to solve the SHA-256 puzzle.

The Draw: A new block is "drawn" every 10 minutes (144 times daily). Everyone's guessing at once.

The Prize: Solve the block first, and you get ~3.125 BTC (reward + fees). Lose, and you get nothing. Thanks for playing, as they say.

The Odds: The Bitcoin network's hashrate might be 600 EH/s (6 x 10^18 H/s) in 2025. Your 1.2 TH/s (1.2 x 10^12) is 0.0000002% of that, 1 in 5 million per block. It's like buying one ticket in a 5-million-player lottery, every 10 minutes.

It's all or nothing because there's no partial payout in solo lottery mining Bitcoin. Pooled mining gives you small, regular rewards based on your contribution, but solo mining is a jackpot or bust. Most Bitaxe 601 users will never win a block, it's a game of pure chance, a lottery.

How Solo Lottery Mining Distributes Hashrate and Block Production

Even with its tiny hashrate, the Bitaxe 601 contributes to Bitcoin's decentralization:

Hashrate Distribution:

What's Hashrate?: The total computing power securing Bitcoin. Big pools often dominate with hundreds of EH/s.

Bitaxe's Role: One Bitaxe 601 adds 1.2 TH/s under your control, not a pool's. If 10,000 people use Bitaxes, that's 12 TH/s (0.002% of 600 EH/s), a small but independent chunk. It reduces reliance on centralized pools.

Why It Helps: Pools with 50-70% of hashrate (e.g., Foundry USA) could theoretically collude. Solo miners spread power out, making control harder to consolidate.

Block Production:

What's Block Production?: Who adds new blocks to the blockchain. Pools usually win most blocks.

Bitaxe's Role: If a Bitaxe 601 solves a block (rare but possible), it's credited to you, not a pool. If 1,000 Bitaxes win a block yearly, that's 1,000 fewer pool blocks.

Decentralization Win: More solo winners mean block creation isn't just from a few big players. Your node (if you run one) broadcasts the block, reinforcing Bitcoin's peer-to-peer ethos.

Math: Why Most People Will Never Find a Block

The numbers aren't in your favor, it's just math:

Your Odds: (1.2 x 10^12H/s / 6 x 10^18 H/s) = 1 in 5 million per block based on this example.

Yearly Blocks: 144 x 365 = 52,560 blocks/year or chances.

Expected Wins: 52,560 / 5,000,000 = ~0.0105 blocks/year. That's one block every 95 years on average. Luck could strike sooner, but most won't see it in a lifetime.
Network Growth: As more miners join, the network hashrate grows, shrinking your slice further.

It's not impossible, Bitaxes have hit blocks (e.g., one in March 2025), but it's a statistical long shot with chances similar to a massive lottery.

Guestimate of Odds:

Network hashrate in 2025 might be 600 EH/s (6 x 10^18 H/s). With 110 TH/s (1.1 x 10^14 H/s), you're 0.000018% of the network. At 144 blocks/day, you might win once every 38 years, unless you get lucky and hit the lottery!

Costs of solo lottery mining Bitcoin with the Bitaxe 601

Running a Bitaxe 601 for solo mining involves upfront and ongoing costs. Here's the breakdown:

1. Hardware Cost

Bitaxe 601: Around $150-$200 in 2025, depending on the supplier (e.g., SoloSatoshi, Bitcoin Merch). Price varies with shipping or extras like upgraded fans.

Power Supply: Often included (5V, 25W), but if not, add $10-$20.

Node (Optional): To solo mine to your own node, a Raspberry Pi 4 ($50) + 1 TB SSD ($80) = $130 one-time. Or use an old PC (free if you have one).

Total Upfront: $150-$200 (miner only) or $280-$350 (with node).

2. Electricity Cost

Power Usage: 20W = 0.02 kW. Running 24 hours = 0.48 kWh/day.

Cost per Day: At $0.10/kWh (U.S. average), 0.48 x $0.10 = $0.048/day.

Yearly Cost: $0.048 x 365 = $17.52/year.
- Cheap Power ($0.05/kWh): $8.76/year.
- Expensive Power ($0.20/kWh): $35.04/year.
Node Power: 5-10W = 0.12-0.24 kWh/day = $4-$9/year at $0.10/kWh.

3. Maintenance/Extras

Cooling: Included fan is fine at default settings. Overclocking might need a $5-$10 upgrade.

Internet: 5-10 GB/month = negligible unless metered.

Repairs: Rare, but a new chip (BM1370) is ~$15 if it fails.

Total Annual Cost

Miner Only: $17.52-$35.04/year (electricity) + $150-$200 (initial).

With Node: $21.52-$44.04/year + $280-$350 (initial).

Why You're Likely to Never Get a Return on Investment

Solo lottery mining Bitcoin with a Bitaxe 601 is a high risk, low power gamble. It's you versus the world, with 20 watts fueling a 1-in-5-million shot every 10 minutes. It spreads hashrate and block production, bolstering Bitcoin's decentralization, but costs ($200 upfront, $17-$44/year) outweigh returns for nearly everyone. It's less about profit and more about belief in Bitcoin's ethos, or chasing a dream.

The economics are tough:

Reward Value: 3.325 BTC x $60,000 = $199,500.

Break-Even: At $17.52/year in electricity, $200 (miner) / $17.52 = 11.4 years to offset the hardware, if you win. But you need the to hit the lottery and mine the block first.

Reality Check: One block every 95 years means you'd spend $200 + (95 x $17.52) = $1,864 over 95 years without a win. If you mine for 5 years ($287.60 total), you're out that cash with no return unless luck strikes.

Pool Comparison: Pooled mining with 1.2 TH/s might earn $0.01-$0.02/day ($3.65-$7.30/year), still a loss, but less risky.

Your ROI is negative unless you hit a block, which 99.9998% of Bitaxe 601 and small lottery miners in generally won't. It's a $200 lottery ticket with a $17-$35 yearly fee yet, a lot of people are taking that chance and more are mining by the day.

Benefits Despite the Costs

Decentralization: Your 1.2 TH/s and rare block win support Bitcoin's freedom from pool control.

Education: You learn solo Bitcoin mining hands onASICs, nodes, blockchain tech. Practice your math skills calculating probabilities!

Hope: A $200,000 payout is a life changing amount of money to a lot of people, even if unlikely. They actively support Bitcoin and have a vested interest in it becoming the dominant currency.

**********************************************************************************

Bitaxe 601 ASIC, Bitcoin Node & Public Pool Setup Guide

Hardware and Internet Requirements to Run a Bitcoin Node

Hardware Requirements

To run a full Bitcoin node with Public Pool for your Bitaxe 601:

Computer: Desktop, laptop, or Raspberry Pi 4 (8GB RAM recommended).
- Minimum: 2 GB RAM (4-8 GB ideal).
- CPU: Dual-core (e.g., Intel i3 or equivalent).
Storage: 1 TB SSD (e.g., Samsung 870 EVO, ~$100).
- Blockchain size: ~650 GB (April 2025), growing ~1 GB/week.
- SSD preferred (100 MB/s minimum).
Power Supply: Stable source; UPS recommended (~$50-$100).

Cooling: Ventilation or small fan for compact devices.

Cost Estimate: $150-$300 (e.g., Raspberry Pi 4 kit ~$100, SSD ~$100, accessories ~$50).

Internet Requirements

A reliable connection is critical:

Speed: 400 kbps upload (50 KB/s); 10 Mbps download recommended.

Data Limits: Unmetered or high-limit plan.
- Initial sync: ~650 GB download.
- Monthly: ~20 GB download, ~200 GB upload.
Stability: Consistent connection required.

Router: Must support port forwarding (port 8333).

Step-by-Step Guide to Install a Bitcoin Node on Ubuntu

This guide uses Ubuntu 22.04 LTS on a dedicated device (e.g., PC or Raspberry Pi).

Step 1: Prepare the Hardware

Assemble the Device:
- Raspberry Pi: Insert microSD card (32 GB+), connect SSD via USB, attach power.
- PC: Install SSD and verify recognition.

Install the OS:
- Download Ubuntu 22.04 (ubuntu.com/download) or Raspberry Pi OS (raspberrypi.com/software).
- Raspberry Pi: Flash OS to microSD with Raspberry Pi Imager.
- PC: Create bootable USB with Rufus (rufus.ie) and install.
- Boot, follow setup wizard, connect to network.

Step 2: Install Bitcoin Core

Update System:
```
sudo apt update && sudo apt upgrade -y
```

Download Bitcoin Core:
- Visit (bitcoin.org/en/download), get latest (e.g., v28.1).
- Download tarball (e.g., bitcoin-28.1-x86_64-linux-gnu.tar.gz).
- Extract:
```
cd ~/Downloads
tar -xvf bitcoin-28.1-x86_64-linux-gnu.tar.gz
```

Install:

sudo mv bitcoin-28.1 /usr/local/bitcoin
echo 'export PATH=$PATH:/usr/local/bitcoin/bin' >> ~/.bashrc
source ~/.bashrc

Verify:
```
bitcoind --version
```
Output: "Bitcoin Core Daemon version v28.1".

Step 3: Configure Bitcoin Core

Create Data Directory:

sudo mkdir -p /mnt/ssd/bitcoin
sudo chown $USER:$USER /mnt/ssd/bitcoin

Mount SSD (if needed):

sudo blkid  # Find UUID
sudo nano /etc/fstab

Add:

UUID= /mnt/ssd ext4 defaults 0 1

sudo mount -a

Create Config File:

nano /mnt/ssd/bitcoin/bitcoin.conf

Add:

datadir=/mnt/ssd/bitcoin
txindex=1
server=1
rpcuser=youruser
rpcpassword=yourpass
rpcallowip=127.0.0.1
rpcport=8332
listen=1
port=8333
maxconnections=50

Start Bitcoin Core:

bitcoind -daemon
bitcoin-cli getblockchaininfo

Step 4: Sync the Blockchain

Initial Block Download (IBD):
- Downloads ~650 GB; takes 1-8 days.
- Monitor:
```
bitcoin-cli getblockchaininfo | grep blocks
```
- Compare to blockchain.com.

Optimize (Optional):
- Use bootstrap file from bitcoin.org.
- Add dbcache=2048 to bitcoin.conf.

Step 5: Configure Network Settings

Open Port 8333:
- Router admin (e.g., 192.168.1.1) > Port Forwarding.
- Rule: TCP, port 8333, node's IP.

Verify:
```
bitcoin-cli getnetworkinfo | grep connections
```
Aim for 8+ connections. Test at (bitnodes.io).

Firewall (Optional):
```
sudo ufw allow 8333/tcp
sudo ufw enable
```

Step 6: Keep the Node Running

Auto-Start:

sudo nano /etc/systemd/system/bitcoind.service

Add:

[Unit]
Description=Bitcoin Daemon
After=network.target

[Service]
ExecStart=/usr/local/bitcoin/bin/bitcoind -conf=/mnt/ssd/bitcoin/bitcoin.conf
User=
Restart=always

[Install]
WantedBy=multi-user.target

sudo systemctl enable bitcoind
sudo systemctl start bitcoind

Monitor:
```
tail -f /mnt/ssd/bitcoin/debug.log
```

Step-by-Step Guide to Install Public Pool Software on Ubuntu

Public Pool is an open-source solo mining pool software. This guide uses Docker on Ubuntu 22.04 with an existing Bitcoin Core node.

Step 1: Install Prerequisites

Update System:
```
sudo apt update && sudo apt upgrade -y
```

Install Docker:

sudo apt install docker.io -y
sudo systemctl enable docker
sudo systemctl start docker

Install Docker Compose:
```
sudo apt install docker-compose -y
```

Step 2: Set Up Public Pool

Create Directory:
```
mkdir ~/pool && cd ~/pool
```

Download Docker Compose File:

Use Seth's simplified repo:

wget https://raw.githubusercontent.com/sethforprivacy/simple-public-pool/master/docker-compose.yaml

Edit Environment Variables:

nano .env

Add:

BITCOIN_RPC_USER=youruser  # Match bitcoin.conf
BITCOIN_RPC_PASSWORD=yourpass  # Match bitcoin.conf
BITCOIN_RPC_HOST=http://127.0.0.1  # Local node
PUBLIC_POOL_STRATUM_PORT=3333

Step 3: Launch Public Pool

Start Containers:
```
docker-compose up -d
```
This runs:
- public-pool: Core mining pool service.
- public-pool-ui: Web interface (optional).
- watchtower: Auto-updates containers.

Check Logs:
```
docker-compose logs --follow public-pool
```
Look for: "Stratum server is listening on port 3333".

Step 4: Configure Network (Optional)

Open Port 3333:
- Router: Forward TCP port 3333 to your node's IP.
- Firewall:
```
sudo ufw allow 3333/tcp
```

Domain (Optional):
- Set up a domain (e.g., via Cloudflare) pointing to your public IP.
- Update PUBLIC_POOL_STRATUM_HOST in .env.

Note: Public Pool defaults to solo mining mode. Rewards go directly to your wallet if a block is found. No UI is required for basic operation.

Connecting the Bitaxe 601 to Your Node

Step 1: Power On the Bitaxe 601

Connect to a 5V 25W power supply, ensure same network as node.

Step 2: Access the Bitaxe WebUI

Find IP:
- OLED shows "Bitaxe_XXXX"; connect to this SSID.
- Or check router's DHCP list.
Open WebUI:
- Browser: http:// (e.g., 192.168.1.100).
- Set Wi-Fi credentials if needed.

Step 3: Configure Mining Settings

Set Stratum URL:
- Local: stratum+tcp://127.0.0.1:3333 (if on same device).
- LAN: stratum+tcp://:3333 (e.g., 192.168.1.10).

Worker Name: Your Bitcoin wallet address (e.g., bc1q...).

Save and Restart: Apply and reboot via WebUI.

Step 4: Verify Mining

WebUI: Check hash rate (1-1.2 TH/s), shares.
Node:
```
bitcoin-cli getmininginfo
```

Pool Logs:

docker-compose -f ~/pool/docker-compose.yaml logs public-pool

Solo Mining Odds: 1.2 TH/s makes block finding rare (~years). Consider pools for steady rewards.

Maintenance: Update node and Public Pool, ensure SSD space.

Cost: ~$150-$300 hardware, ~30W total power.

Your Bitaxe 601 is now mining via your own Bitcoin node and Public Pool!

**********************************************************************************

If you would like to learn how to build your own BitAxe 601 so you can solo lottery mine Bitcoin, continue to the Mining Equipment page to learn more and find everything you need.

**********************************************************************************

Guide: Setting Up a FutureBit Apollo BTC Full Node for solo Lottery Bitcoin Mining with Bitaxe 601 Miners

Welcome to your journey into Bitcoin self-sovereignty! This guide will walk you through setting up a FutureBit Apollo BTC as a full Bitcoin node and configuring it to solo mine, then connecting additional Bitaxe 601 miners to mine to your own node. By the end, you'll be contributing to Bitcoin's security and decentralization, and maybe even hit a block lottery!

What You'll Need:

FutureBit Apollo BTC Full Node: A compact device that runs a full Bitcoin node and can mine (e.g., 1st gen with 2-6 TH/s, ~$900 new in 2025, or used for ~$500-$700).

Bitaxe 601 Miners: Small, open-source ASICs (1.2 TH/s, 20W each, ~$150-$200 each). Each unit increases your hashrate.

Power Supplies: Apollo BTC has a built-in 200W PSU; Bitaxe 601 needs a 5V, 25W USB-C supply (usually included).

Internet: Stable connection, 10-20 Mbps, no strict data caps (5-10 GB/month after syncing).

Computer/Phone: For initial setup and monitoring.

Ethernet Cable: For Apollo BTC (Wi-Fi optional but less reliable).

Router Access: To find IP addresses.

Step 1: Unbox and Power Up the Apollo BTC

Unbox: Open your Apollo BTC package. You'll find the device (with a 1 TB SSD pre-installed), a power cord, and maybe a quick-start guide.

Connect:
- Plug the power cord into the Apollo BTC and a wall outlet (120V AC).
- Attach an Ethernet cable from the Apollo to your router. (Wi-Fi is possible but Ethernet is stabler.)

Power On: Flip the power switch (if present) or just plug it in, it'll boot up. You'll see lights blink as it starts.

Step 2: Sync the Apollo BTC as a Full Node

The Apollo BTC runs Bitcoin Core and needs to download the full blockchain (~650 GB in 2025).

Find the IP Address:
- Log into your router (usually 192.168.0.1 or 192.168.1.1 in a browser; check the sticker for login details like "admin/password").
- Look for "futurebit-btc" in the connected devices list to get its IP (e.g., 192.168.1.100).
- Alternatively, use a tool like AngryIP Scanner on your network.

Access the Dashboard:
- Open a browser on a device on the same network.
- Type the Apollo's IP (e.g., http://192.168.1.100).
- You'll see the Apollo OS interface (a simple web UI).

Start Syncing:
- The Apollo comes with Bitcoin Core pre-installed. It'll auto-start syncing the blockchain.
- First sync takes 1-3 days (depending on your internet). Check progress in the dashboard under "Node Status" (blocks synced vs. network total, ~700,000 in 2025).
- Keep it powered on and connected, don't interrupt it.

Step 3: Configure the Apollo BTC for Solo Mining

Once synced, set up the Apollo to solo mine to itself.

Log Into the Dashboard:
- Back in the browser at the Apollo's IP, log in if prompted (default is often "admin"/"futurebit" or check the manual).

Set Up Solo Mining:
- Go to the "Mining" tab.
- Select "Solo Mining" mode (Apollo OS 2.0+ supports zero-config solo mining to its own node).
- Enter a Bitcoin wallet address for rewards:
  - Use a wallet like Sparrow or Electrum (create one if you don't have it; save the private key securely).
  - Paste the address (e.g., bc1q...) into the :Payout "Address" field.
- Save settings.

Start Mining:
- Click "Start Mining". The Apollo's built-in ASIC (2-6 TH/s, depending on mode) will begin hashing.
- Check "Hashrate" in the dashboard (e.g., 2 TH/s in Eco mode, 6 TH/s in Turbo, 125-375W).

Step 4: Set Up Your Bitaxe 601 Miners

Now, add your Bitaxe 601s to mine to the Apollo BTC node.

Unbox and Power Up:
- Unpack each Bitaxe 601. You"ll get the miner, a USB-C cable, and a 5V power supply.
- Plug the USB-C into the Bitaxe and a power outlet. It'll boot and display a small screen with status.

Connect to Wi-Fi:
- On your phone/computer, scan for Wi-Fi networks. Look for "Bitaxe_XXXX" (its SSID).
- Connect to it (password is often "bitaxe123" or blank, check the manual).
- Open a browser to 192.168.4.1 - this is the Bitaxe's AxeOS interface.
- Go to "Network Settings", enter your home Wi-Fi SSID and password (2.4 GHz only), and save. Restart the Bitaxe, it'll join your network.

Find the Bitaxe IP:
- After reboot, the Bitaxe screen shows its IP (e.g., 192.168.1.101). Or check your router's device list.

Step 5: Point Bitaxe 601s to Your Apollo BTC Node

Configure each Bitaxe to solo mine to your Apollo.

Access Bitaxe Dashboard:
- In a browser, go to the Bitaxe's IP (e.g., http://192.168.1.101).
Set Mining Pool:
- Go to "Pool Settings" or "Configuration".
- Change the "Stratum URL" to your Apollo's IP and port:
  - Format: stratum+tcp://192.168.1.100:3333 (Apollo's default solo pool port is 3333; confirm in Apollo's "Mining" settings).
- Stratum User: Enter your Bitcoin wallet address (same as Apollo's).
- Stratum Password: Leave blank or use "x" (not needed for solo).
- Save and restart the Bitaxe.

Verify Hashing:
- Check the Bitaxe dashboard ("Dashboard" tab) for hashrate (1.2 TH/s) and shares submitted.
- On the Apollo dashboard, under "Mining", you'll see the combined hashrate (e.g., 2 TH/s Apollo + 1.2 TH/s per Bitaxe).

Step 6: Monitor and Maintain

Apollo Dashboard: Watch node sync, hashrate, and block attempts. Restart if it lags (power cycle or reboot via UI).

Bitaxe Dashboard: Ensure each miner stays online and hashes. Re-seat the screen or power cycle if it freezes.

Odds: With 1 Apollo (2 TH/s) + 2 Bitaxes (2.4 TH/s) = 4.4 TH/s, against 600 EH/s network, your chance is 1 in 136,000 per block, one every 2.6 years on average. More Bitaxes boost this slightly.

Costs:
- Apollo: $500-$900 + $50-$150/year electricity (125-375W).
- Bitaxe: $150-$200 each + $9-$35/year electricity (20W).
- Total for setup with 2 Bitaxes: ~$800-$1,300 upfront, $68-$220/year.

Why This Matters:

Decentralization: Your 4.4 TH/s and solo blocks (if you win) reduce pool dominance (e.g., Foundry's 30% share). More solo miners = less centralized hashrate.

Self-Sovereignty: You control your node and mining, no trusting third parties.

Lottery Fun: A $240,000+ block reward is unlikely but possible, pure Bitcoin spirit!

Troubleshooting:

Apollo Not Syncing: Check internet; restart via dashboard or power cycle.

Bitaxe Offline: Verify Wi-Fi; reconfigure if IP changes (router DHCP issue).

No Hashrate: Ensure stratum settings match Apollo's port; check firewall (open 3333 on Apollo's network).

Next Steps:

Add more Bitaxes for better odds (e.g., 10 = 14 TH/s total).
Join Bitcoin forums (e.g., Bitaxe.org, FutureBit.io) for tips.
Backup your wallet's private key, don't lose that $240,000 if you win!

**********************************************************************************

Good Luck and no matter what happens everyone is a winner when they play the Bitcoin Lottery!

Unknown Bitcoin Blocks Mined Without a Pool Name

This displays recently mined Bitcoin blocks that do not contain a pool name as the miner in their block construction. This is typical of a solo Bitcoin lottery miner's and other's who wish to remain unknown.