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Another evolution came later on with FPGA mining. FPGA is a bit of hardware that can be connected to your computer in order to run a set of calculations. They're only like GPUs but 3100 times quicker. The downside is that theyre harder to configure, and this is the reason why they werent as commonly used in mining since 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 used to perform anything else. Their function has been hardcoded into this machine. .

Now, ASIC miners are the current mining standard. Some ancient ASIC miners even appeared in the form of a USB, but they became obsolete fairly quickly. Even though they started out in 2013, the technology rapidly evolved, and new, stronger miners were coming out every six months.

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After about three decades of the mad technological race, we finally reached a technological obstacle, and things began 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 game, youre up against some heavy competition. Even in the event that you purchase the best potential miner on the market, youre still at a huge disadvantage compared to professional Bitcoin mining farms.

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

Today there are more than a dozen big pools which compete for the chance to mine Bitcoin and update the ledger.

When calculating Bitcoin mining profitability, there are a Great Deal of things that 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., how many guesses your computer can make per second). Hash rate can be quantified in MH/s (mega hash per second), GH/s (giga hash per 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 own halved every 210,000 cubes (about four years). The current number of bitcoins awarded per cube is 12.5. The final block-halving occurred in July 2016, and the next one will be in 2020. .

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

Electricity cost: How many dollars are you paying per kilowatt Youll need to find out your electricity rate in order to compute profitability. This can typically be found on your monthly power bill. The reason that is important is that miners consume electricity, whether for powering up the miner or for cooling down (these machines can become very 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 adulthood. This can be found easily with a quick search online or through this listing. Power consumption is measured in watts.

Pool prices: When youre mining through a mining pool (you should), then the pool is going to take a certain percentage of your earnings to rendering their my link service. Generally, this could be somewhere around 2%.

Bitcoins price: 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 factor will have a significant impact on profitability.

Difficulty increase annually: This is probably the most important and elusive factor of all of them. The idea is that since no one can really predict the rate of miners joining the network, neither can anyone predict just how difficult it's going to be to mine in fourteen days, six months, or 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 each of these variables at hand you can insert them into a Bitcoin mining calculator (as can be seen below) and find an estimate of how many Bitcoins you will earn every month. In case you cant get a positive result on the calculator, it likely means you dont have the right conditions for mining to be rewarding. .