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Another evolution came after on with FPGA mining. FPGA is a bit of hardware that can be connected to a computer in order to run a pair of calculations. They are only like GPUs but 3100 times faster. The downside is that theyre more difficult to configure, which 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 were bits of hardware manufactured solely for the purpose of mining Bitcoin. Unlike GPUs, CPUs, and FPGAs, they couldnt be used to do anything else. Their function was hardcoded into the machine. .

Today, ASIC miners would be the current mining standard. Some early ASIC miners even emerged in the kind of a USB, but they became obsolete fairly quickly. Even though they began 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 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 just entering the Bitcoin mining game, youre up against some heavy competition. Even in the event that you purchase the finest potential miner on the market, youre still in a massive disadvantage when compared with professional Bitcoin mining farms.

Thats why mining pools came into existence. The notion is simple: miners team together to make 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 members depending on how much mining energy 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 lot of things you need to take into account such as:

Hash speed: A Hash is your mathematical difficulty the miners computer needs to solve. The hash rate refers to your miners performance (i.e., how many guesses your pc can make per second). Hash rate can be quantified in MH/s (mega hash each 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 halved every 210,000 blocks (approximately four years). The current number of bitcoins given per block 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 in any given moment considering the amount of mining electricity currently active in the system.

Electricity cost: How many dollars are you currently 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 (these machines can become really hot). .

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

Pool fees: When youre mining through a mining pool (you need to ), then the pool will take a certain percentage of your earnings to rendering their services. Generally, this see post would be somewhere around 2 percent.

Bitcoins cost: Since no one knows what Bitcoins price will be in the long run, its hard to predict if Bitcoin mining will be rewarding. If you're planning to convert your mined bitcoins to any other currency in the future, this variable will have a significant influence on profitability.

Difficulty increase annually: This is probably the most important and elusive variable of all of them. The concept is that since no one can really predict the rate of miners joining the network, neither can anyone predict 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 Have the Ability to Provide a complete answer to this question is Bitcoin mining profitable

Once you have all 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. In case you cant get a favorable result on the calculator, it probably means you dont have the right conditions for mining to become rewarding. .