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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 pair of calculations. They are only like GPUs however 3100 times quicker. The downside is that theyre more difficult to configure, which is the reason why they werent as commonly utilized 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 bits of hardware manufactured solely for the purpose of mining Bitcoin. Unlike GPUs, CPUs, and FPGAs, they couldnt be utilized to perform anything else. Their function was hardcoded into this machine. .
Today, ASIC miners would be the current mining standard. Some ancient ASIC miners even appeared in the form 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 decades of this crazy technological race, we finally reached a technological barrier, and things started to cool down a little. Since 2016, the pace 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 buy the finest possible miner out there, youre still at a huge disadvantage compared to professional Bitcoin mining farms.
Thats why mining pools came into existence. The notion is simple: miners group together to form a pool (i.e., combine their mining capability to compete more efficiently ). Once the pool manages to win the competition, the reward is spread out between the pool depending on how much mining power each of these contributed.
Now there are more than a dozen big pools that compete for the chance to mine Bitcoin and update the ledger.
When calculating Bitcoin mining profitability, there are a Great Deal of things you need to take into account such as:
Hash speed: A Hash is your mathematical difficulty the miners pc needs to solve. The hash rate refers to a miners performance (i.e., how many guesses your computer can make per second). Hash rate can be quantified in MH/s (mega hash each 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. This number started at 50 bitcoins back in 2009, and its own halved every 210,000 blocks (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 probably be in 2020. .
Mining difficulty: A number that represents how difficult it's to mine bitcoins at any given moment considering the amount of mining power currently active in the system.
Electricity cost: Just how many dollars are you currently paying per kilowatt Youll need to find out your energy rate in order to calculate profitability. This can typically be found on your monthly electricity bill. The reason this is important is that miners consume power, while for powering up the miner or for cooling down (those machines can get really hot). .
Power consumption: Every 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 fast search online or via this list. Power consumption is measured in watts.
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 are planning to convert your mined bitcoins to any other currency in the long run, this variable will have a significant influence on profitability.
Difficulty increase annually: This is most likely the most important and elusive factor of all of them. The idea is that since no one can really predict the speed of miners joining the network, neither can anyone predict how difficult it's going to be to mine in fourteen days, six months, or even six years from now.
The last two variables are the reason no one will ever be able to Provide a complete answer to 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 every month. If you cant get a positive result on the calculator, it probably means you dont have the right conditions for mining to become rewarding. .