All about Bitcoin Money

Another evolution came later on with FPGA mining. FPGA is a bit of hardware that can be connected to a computer in order to run a set of calculations. They are just like GPUs but 3100 times quicker. The downside is that theyre more difficult to configure, and this explains why they werent as commonly used in mining as GPUs. .

Finally, around 2013, a new breed of miner was introducedthe ASIC miner. ASIC stands for application specific integrated circuit, and these are pieces of hardware manufactured solely 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 emerged 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 years of this crazy technological race, we finally reached a technological obstacle, and things started to cool down a little. Since 2016, the speed at which new miners are published has slowed considerably.

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Assuming youre simply entering the Bitcoin mining match, youre up against some heavy competition. Even if you buy the best possible miner on the market, youre still in a massive disadvantage compared to professional Bitcoin mining farms.

Thats why mining pools came into existence. The idea is simple: miners group together to form a pool (i.e., combine their mining power to compete more effectively). Once the swimming pool manages to win the competition, the payoff is distributed between the pool depending on how much mining power each of them contributed.

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

When calculating Bitcoin mining elevation, there are a lot of things that you need to take into account for example:

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

Bitcoin reward per block: The number of Bitcoins generated when a miner finds out the solution. This number started at 50 bitcoins back in 2009, and its halved every 210,000 blocks (about 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 difficult it's to mine bitcoins in any given moment considering the amount of mining electricity currently active in the system.

Electricity cost: How many dollars are you paying each kilowatt Youll need to find out your electricity rate in order to calculate profitability. This can typically be found on your monthly power bill. The reason this is important is that miners consume electricity, whether for powering up the miner or for cooling down (those machines can become very hot). .

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

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

Bitcoins cost: Since no one knows what Bitcoins price will probably be in the future, its hard to predict whether Bitcoin mining will be profitable. If you are planning to convert your mined bitcoins to any other currency in the future, this factor will have a significant influence on profitability.

Difficulty increase annually: This is most likely the most important and elusive factor of them all. The concept is that since no one can actually predict the rate of miners joining the network, neither can anyone predict how hard it will be to mine in fourteen days, six months, or even six years from now.

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

Once you have all these factors 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 favorable effect on the calculator, it likely means you dont have the right conditions for mining to become rewarding. .