According to the blockchain research that was conducted by the University College of London, the current proof of work from the cost of mining is important for the entire bitcoin network since it is decentralized and trustless to begin with.
Based on the latest note from the professor of UCL specializing in complexity science and also the director of the Centre for Blockchain Technologies, the cost that is incurred by the miners in processing a single block will amount to $10,000 which is less then compared to the incentives they earn for every block of transaction processed.
These findings should be noted because there has been an ongoing discussing regarding the mining of the bitcoin in order to verify every transaction that is conducted within the network. Many institutions as well as academics find that this mining process is not only a waste of resources as well as an unimportant part of the bitcoin network architecture.
Aste included in the noted that the money being spend for every block is justifiable since it is necessary in order to make sure that the entire network is maintained. This is considering that the system is quite large in magnitude and the parties involved are anonymous to each and everyone.
With the current value of bitcoin, the reward for every block processed is 25 bitcoins which is then divided among miners of a certain pool. When converted to dollar, 25 bitcoins amount to $15,600. Since there is a block halving event happening this year, the current block reward will be reduced by half and will fall to 12.5 bitcoins from the usual 25 bitcoins.
Mining of bitcoins have been compared to an energy arbitrage wherein the miners are getting their profit from making sure that they earn more money compared to the amount of electricity they have to pay. In order to generate a larger bitcoin income, the power consumption must be cheaper in your area while the mining operation must be efficient. It is also important to learn about how bitcoin works before fully diving into the system and be involved in a mining pool.