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Another evolution came later on with FPGA mining. FPGA is a piece of hardware that can be connected to a computer in order to run a pair of calculations. They are just like GPUs however 3100 times faster. 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 introducedthe ASIC miner. ASIC stands for application specific integrated circuit, and these were bits of hardware manufactured solely for the purpose of mining Bitcoin. Unlike GPUs, CPUs, and FPGAs, they couldnt be used to do anything else. Their function was hardcoded into this machine. .

Now, ASIC miners would be the current mining standard. Some ancient ASIC miners even appeared in the form of a USB, but they became obsolete rather 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 the mad technological race, we finally reached a technological obstacle, and things began 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 game, youre up against some heavy competition. Even if you purchase the finest 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 notion is simple: 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 spread out between the pool members depending on how much mining energy each of them contributed.

Today there are over a dozen big pools which 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 speed: A Hash is the mathematical problem the miners pc needs to solve. The hash rate refers to your miners performance (i.e., how many guesses your pc can make per second). Hash rate can be measured 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 own halved every 210,000 blocks (approximately four years). The current number of bitcoins given per cube is 12.5. The final block-halving occurred in July 2016, and the next one will probably be in 2020. .

Mining difficulty: A number that represents how difficult it is to Home Page mine bitcoins in any given moment considering the amount of mining electricity currently active in the system.

Electricity cost: How many dollars are you paying each kilowatt Youll need to find out your energy 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 down (these machines can become very hot). .

Power consumption: Each miner consumes a different amount of energy. Youll need to find out the exact energy consumption of your miner before calculating adulthood. This can be found easily with a fast search online or via this list. Power consumption is measured in watts.

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

Bitcoins cost: Since no one knows what Bitcoins price will probably be in the future, it's challenging 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 factor will have a significant influence on profitability.

Difficulty increase annually: This is probably the most important and elusive factor of them all. The idea is that since no one can really predict the speed of miners joining the network, neither can anyone predict just how difficult it's going to be to mine in six weeks, six months, or 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 have each 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 will earn each month. If you cant get a positive result on the calculator, it probably means you dont have the right conditions for mining to be profitable. .