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Another evolution came after 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 only like GPUs however 3100 times faster. The downside is that theyre more difficult to configure, which explains why they werent as commonly used in mining since 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 utilized to perform anything else. Their function has been hardcoded into the machine. .

Today, ASIC miners are the current mining standard. Some early ASIC miners even emerged in the form of a USB, but they became obsolete fairly quickly. Even though they began in 2013, the technology rapidly 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 obstacle, and things began to cool down a bit. 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 buy the finest possible miner on the market, youre still at a massive disadvantage compared to professional Bitcoin mining farms.

Thats why mining pools came into existence. The notion is straightforward: miners group together to form a pool (i.e., combine their mining power to compete more efficiently ). Once the 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 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 rate: A Hash is the mathematical problem the miners computer needs to solve. The hash rate refers to your miners performance (i.e., how many guesses your computer can make per second). Hash rate can be quantified in MH/s (mega hash each second), GH/s (giga hash each second), TH/s (terra hash per second), and even PH/s (peta hash per second). .

Bitcoin reward per cube: 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 blocks (approximately four years). The current number of bitcoins given per cube is 12.5. The final block-halving happened in July 2016, and the next one will 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 electricity currently active in the system.

Electricity price: Just how many dollars are you currently paying per kilowatt Youll need to find out your electricity rate in order to calculate profitability. This can usually be found on your monthly electricity bill. The reason this is important is that miners consume electricity, whether for powering up the miner or for cooling down (those machines can become really hot). .

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

Pool fees: When youre mining by means of a mining pool (you should), then the pool will take a certain percentage of your earnings for rendering their service. Generally, this could be somewhere around 2 percent.

Bitcoins cost: Since no one knows what Bitcoins price will probably be in the long run, its hard to predict if Bitcoin mining will likely be rewarding. 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 annually: 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 rate of miners joining the network, neither can anyone predict how hard it will be to mine in six weeks, 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 this question is Bitcoin mining profitable

Once you've got 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 each month. If you cant get a positive result on the calculator, then it likely means you dont have the ideal conditions for mining to become rewarding. .