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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 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 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 utilized to perform anything else. Their function was hardcoded into this machine. .

Now, ASIC miners would be the current mining standard. Some early ASIC miners even emerged 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, stronger 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 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 finest potential miner on the market, youre still in a massive disadvantage compared to professional Bitcoin mining farms.

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

Today there are over a dozen big pools which compete for the chance to mine Bitcoin and upgrade the ledger.

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

Hash speed: A Hash is the mathematical problem the miners computer needs to solve. The hash rate refers to a miners performance (i.e., just how many guesses your computer can make per second). Hash rate can be measured continue reading this 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 the solution. This number started at 50 bitcoins back in 2009, and its halved every 210,000 cubes (about four years). The current number of bitcoins given per cube is 12.5. The last block-halving happened in July 2016, and the next one will probably be in 2020. .

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

Electricity price: How many dollars are you currently paying per kilowatt Youll need to find out your electricity rate in order to compute profitability. This can typically be found on your monthly electricity bill. The reason this is important is that miners consume power, while for powering up the miner or for cooling it down (these machines can become really 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 quick search online or via this list. Power consumption is measured in watts.

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Pool prices: When youre mining by means of a mining pool (you need to ), 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 variable will have a significant impact on profitability.

Difficulty increase per year: This is most likely the most important and elusive factor of all of them. The concept is that since no one can really predict the speed of miners joining the network, neither can anyone predict how difficult it will be to mine in six weeks, six months, or even six years from now.

The last two variables are the reason no one will ever Have the Ability to Provide a complete answer to the question is Bitcoin mining profitable

Once you have each 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 will earn every month. In case you cant get a positive effect on the calculator, it probably means you dont have the right conditions for mining to become profitable. .

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