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Another evolution came after on with FPGA mining. FPGA is a piece of hardware which can be connected to your computer in order to run a pair of calculations. They're just like GPUs however 3100 times faster. The downside is that theyre more difficult to configure, and this 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 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 the machine. .

Now, ASIC miners would be the current mining standard. Some early ASIC miners even emerged in the kind 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 crazy technological race, we finally reached a technological barrier, 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 match, youre up against some heavy competition. Even in the event that you purchase the best possible 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 idea is straightforward: miners team 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 reward is distributed between the pool depending on how much mining power each of these contributed.

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

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

Hash speed: A Hash is the 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 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 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 final block-halving happened in July 2016, and the next one will probably be in 2020. .

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

Electricity price: Just how many dollars are you currently paying per kilowatt Youll need to find out your energy rate in order to calculate profitability. This can usually be found on your monthly power bill. The reason that is important is check my source that miners consume electricity, whether for powering up the miner or for cooling it down (these machines can get 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 profitability. This can be found easily with a quick search online or through this list. Power consumption is measured in watts.

Pool fees: If 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 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 whether Bitcoin mining will likely be rewarding. If you are planning to convert your mined bitcoins to any other currency in the future, this factor will have a significant impact on profitability.

Difficulty increase annually: This is most likely the most important and elusive factor of all of them. The idea is that since no one can actually predict the rate of miners joining the network, neither can anyone predict just how hard it's going to be to mine in six weeks, six months, or six years from now.

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

Once you have each of these factors 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 may earn every month. In case you cant get a positive result on the calculator, it probably means you dont have the ideal conditions for mining to be profitable. .