The Bitcoin Mining Website Ideas

Another evolution came after on with FPGA mining. FPGA is a bit of hardware which can be connected to your computer in order to run a set of calculations. They are only like GPUs but 3100 times faster. The downside is that theyre more difficult to configure, which is the reason why they werent as commonly used in mining as GPUs. .

Finally, around 2013, a new breed of miner was introduced: the ASIC miner. ASIC stands for application specific integrated circuit, and these are pieces of hardware manufactured only for the purpose of mining Bitcoin. Unlike GPUs, CPUs, and FPGAs, they couldnt be utilized to do anything else. Their function has been hardcoded into the machine. .

Today, ASIC miners would be the current mining standard. Some ancient ASIC miners even appeared in the kind of a USB, but they became obsolete rather quickly. Even though they began in 2013, the technology quickly evolved, and new, more powerful miners were coming out every six months.

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After about three years of this crazy technological race, we finally reached a technological obstacle, and things began to cool down a bit. Since 2016, the speed at which new miners are released has slowed considerably.

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Assuming youre simply entering the Bitcoin mining game, youre up against some heavy competition. Even in the event that you purchase the finest possible miner out there, youre still at a huge disadvantage when compared with professional Bitcoin mining farms.

Thats why mining pools came into existence. The idea is straightforward: miners team together to make a pool (i.e., combine their mining power to compete more effectively). Once the pool manages to win the competition, the payoff is spread out between the pool depending on how much mining power each of these contributed.

Now there are over a dozen large pools which compete for the chance to mine Bitcoin and update the ledger.

When calculating Bitcoin mining profitability, there are a lot of things you need to take into account such as:

Hash rate: A Hash is your mathematical difficulty the miners computer needs to solve. The hash speed refers to a miners performance (i.e., just how many guesses your computer can make per second). Hash rate can be measured in MH/s (mega hash per second), GH/s (giga hash each second), TH/s (terra hash per second), and even PH/s (peta hash per second). .

Bitcoin reward per cube: The number of Bitcoins generated when a miner finds out the solution. official source This number began at 50 bitcoins back in 2009, and its halved every 210,000 cubes (approximately four years). The current number of bitcoins awarded per cube is 12.5. The last block-halving occurred in July 2016, and the next one will be in 2020. .

Mining difficulty: A number that represents how hard it is to mine bitcoins at any given moment considering the amount of mining electricity currently active in the system.

Electricity price: How many dollars are you paying per kilowatt Youll need to find out your energy rate in order to compute profitability. This can usually be found on your monthly electricity bill. The reason that is important is that miners consume electricity, whether for powering up the miner or for cooling it down (those machines can get really hot). .

Power consumption: Each miner consumes a different amount of energy. Youll need to find out the exact power consumption of your miner before calculating profitability. This can be found easily with a quick search online or via this list. Power consumption is measured in watts.

Pool prices: If youre mining by means of a mining pool (you should), then the pool is going to take a certain percentage of your earnings for rendering their services. Generally, this would be somewhere around 2 percent.

Bitcoins cost: Since no one knows what Bitcoins price will probably be in the future, it's challenging to predict whether Bitcoin mining will likely be rewarding. If you're planning to convert your mined bitcoins to any other currency in the future, this variable will have a significant impact on profitability.

Difficulty increase annually: This is most likely the most important and elusive variable of them all. The idea is that since no one can really predict the speed of miners joining the network, neither can anyone predict just how hard it's going to be to mine in six weeks, six months, or six years from now.

The last two factors are the reason no one will ever be able to give a complete answer to try this the question is Bitcoin mining profitable

Once you have all of these variables at hand you can insert them into a Bitcoin mining calculator (as can be seen below) and get an estimate of how many Bitcoins you may earn each month. If you cant get a positive result on the calculator, then it probably means you dont have the right conditions for mining to be rewarding. .