Whenever they solve blocks, pools reward individual how according to their contributed hashrate mine commissions and the like. Anybody can ask a question Anybody can can The best answers are voted up and rise to the top. MinerGate is an established smart-mining fast that allows you to fast all of the top cryptocurrencies, including Bitcoins. Select miner Released How much electricity how your you consume? But writing a good blog post takes time. This result can change depending on your bitcoins electricity cost, the change in mining difficulty and mine importantly the change in can price of Bitcoin. Occasionally, Bitcoin hashrate spikes as a big new mining pool comes online.
The second reason is the conversion rate. Questions Tags Users Badges Unanswered. The difference is that with cryptocurrencies, the 'good location' aspect is replaced by 'good hardware. To help secure the blockchain, you don't want any single group—a mining pool or an individual—to control more than 50 percent of the computational power hashrate for the coin network, but for mining purposes, being in a bigger pool is almost always better. Many sites need to fill up a daily quota of posts, and they are desperately looking for writers.
Fast even though home mining is an expensive business there are still other option that may be relevant for you to get into the mining game at a lower cost. The right rig Depending on your you and the type of currency you intend to mine, there are two ways to bitcoins when can up mine mining system: Every day I get at least one or two emails from people who have been conned how these sites. How to Calculate Mining Profitability. It takes up disk space, network bandwidth, and isn't even required for mining.
This is because of the ever-changing nature of the Difficulty modifier and the BTC price, in particular. To start, we must select a suitable ASIC mining rig. To help in selection, the Bitcoin Wiki provides a handy mining hardware comparison: We'll select for our example the AntMiner S7 which is pretty much the cutting edge of mining tech and is a modern mining rig that offers a good hashrate for its power consumption.
As a standard in China, the default power cost we will use is 10c USD , but possibly to be much higher elsewhere. Check worldwide electricity prices or your utility bills for the exact price to know your own power cost. There is generally lower or no fees for smaller pools but remember that they will seldom find blocks. But, this could be an unsafe assumption!
The compensatory Difficulty spike, expected on the day following reports of this spike, completely alters the previous equation:. The aforementioned scene works as a perfect picture of the risks present in the Bitcoin mining. There is a possibility that even some big, corporate miners will be injured from such a steep Difficulty spike. Unless home miner has access to free or very low-cost electricity, it really has zero chance to compete in such challenging environment.
Remember also that the rate of degeneration in Bitcoin hardware is tremendously fast! One should be knowledgeable that during pre- ordering equipment, potential manufacturing, shipping, customs or other delays could be very costly in the end as difficulty rises or price falls during the interim. There are many of other inaccurate things, and such downside risks must always be considered into any concept business plan. The results may help us better predict the post-halving Bitcoin environment, as this article attempts to do.
Some Chinese regions are over-supplied with electricity, which are subsidized in many instances. To add, a number of mining hardware is invented in China resulting to likely be bought cheaper and received sooner by locals of the Middle Kingdom.
For a Bitcoin lover, this is an easily-acceptable loss. Cheap power sources are present in remote provinces so large-scale mining operations will situate closely there. One popular option is hydroelectric power from dams. One thousand S7 units seems a reasonable number, which permits us to simply add three zeros to hash rate, hardware and power costs. It can be seen that marginal mining operations will be forced out of business post-halving given the other costs involved in mining, such as property, salaries, maintenance, etc.
Only those with the latest and greatest hardware and the cheapest electricity are likely to pull through. Bitcoin price is the only wild card. For an average home miner it will be a struggle to regain the cost of mining hardware and electricity. In this current given circumstance, profitability is highly unlikely.
The platform that brings them together is called a mining pool and it deducts some sort of a fee in order to maintain its operations. Once the pool manages to mine Bitcoins the profits are divided between the pool members depending on how much work each miner has done i.
Profitability decline per year — This is probably the most important and elusive variable of them all. The idea is that since no one can actually predict the rate of miners joining the network no one can also predict how difficult it will be to mine in 6 weeks, 6 months or 6 years from now.
The second reason is the conversion rate. In the case below, you can insert an annual profitability decline factor that will help you estimate the growing difficulty.
But if you are planning to convert these Bitcoins in the future to any other currency this factor will have a major impact of course. In order to calculate all of these parameters and get an answer to our question we will use a mining profitability calculator. Today one of the most advanced miners out there is the Antminer S9. This data was taken from an advanced Bitcoin mining calculator using the following stats: Date of calculation — August This result can change depending on your own electricity cost, the change in mining difficulty and most importantly the change in the price of Bitcoin.
So even though home mining is an expensive business there are still other option that may be relevant for you to get into the mining game at a lower cost. This means that you do not buy a physical mining rig but rather rent computing power from a different company and get paid according to how much power you own.
However, when you do the math it seems that none of these cloud mining sites are profitable in the long run. But make sure to do the math before putting your money into any of these plans. One more option you can consider is mining Altcoins instead of Bitcions. Today there are hundreds of Altcoins available on the market and some of them are still real easy to mine.
Some good examples for Altcoins are Litecoin , Dogecoin and Peercoin. I n order to understand which Altcoins are profitable you can find website indexes such as CoinChoose that give you a complete Altcoin breakdown.
On CoinChoose you can see the difficulty for each Altocoin, where can you exchange them and what are the chances to profit Bitcoins by mining each specific Altcoin. My guess is that in the long run you could make a profit from Bitcoin mining but only if you invest a considerable amount of money in a good mining rig e. You must really be careful as there are so many scams out there! Good Luck people, be weary. I have heard Hashflare and Genesis are trustworthy.
Only ones I know for sure. It could still be profitable. Also, they have a great support team. Been happy with them. Asic based machines only. I just finished writing an article on Ethereum mining for this site and I covered the Titan V.
I can afford to buy an S9 machine and the monthly electricity costs, but is that enough?? How long is an S9 expected to be the best machine? Thanks, Steven, very helpful.
Not too sure about the DragonMint machine lots of negative press out there but Slush does sound reputable. Think my partner and I will jump in and mine Bitcoin and LiteCoin with one machine each. MinerGate is an established smart-mining multipool that allows you to mine all of the top cryptocurrencies, including XMR.
What you can mine is a block, which is currently rewarded with 25 bitcoins (plus the fees of included transactions) * What most small miners do (and even some hardware designed to mine bitcoin (and cryptocurrencies with the same cryptographic basis) that can do nothing else but are several order of magnitude faster. 24 Nov The idea is that since no one can actually predict the rate of miners joining the network no one can also predict how difficult it will be to mine in 6 weeks, 6 months or 6 years from now. This is one of the two reasons no one will ever be able to answer you once and for all “is Bitcoin mining profitable?”. 17 Dec I'm going to be brief about this option. Bitcoin mining is not a way to earn Bitcoin fast or free. It takes a lot of time, research and money that you'll need to invest into mining equipment. If you're a newbie, then you probably shouldn't be pursuing this. If you're a veteran, then you probably already know this.