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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're just like GPUs however 3100 times quicker. The downside is that theyre harder to configure, which explains 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 bits 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 was hardcoded into this machine. .

Today, ASIC miners would be the current mining standard. Some early ASIC miners even appeared in the form of a USB, but they became obsolete rather quickly. Even though they started out 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 mad technological race, we finally reached a technological barrier, and things began to cool down a bit. Since 2016, the pace at which new miners are published 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 best potential miner on the market, youre still at a massive disadvantage when compared with professional Bitcoin mining farms.

Thats why mining pools came into existence. The idea is straightforward: miners group 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 them contributed.

Now there are over 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 rate: A Hash is your mathematical difficulty the miners computer needs to fix. The hash speed refers to your miners performance (i.e., just 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 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 the solution. This number began at 50 bitcoins back in 2009, and its own 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 difficult it is to mine bitcoins at any given moment considering the amount of mining electricity currently active in the system.

Electricity cost: Just how many dollars are you paying per kilowatt Youll need to find out go 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, while for powering up the miner or for cooling it down (these 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 adulthood. This can be found easily with a quick search online or via this listing. Power consumption is measured in watts.

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

Bitcoins price: Since no one knows what Bitcoins price will probably be in the future, its hard to predict if Bitcoin mining will 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 per year: This is most likely the most important and elusive variable of all of them. The concept is that since no one can actually predict the speed of miners joining the network, neither can anyone predict just how difficult helpful hints 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 give a complete answer to the question is Bitcoin mining profitable

Once you've got 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. In case you cant get a positive result on the calculator, it likely means you dont have the ideal conditions for mining to become profitable. .

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