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Another evolution came later on with FPGA mining. FPGA is a bit of hardware which can be connected to a computer in order to run a set of calculations. They are just like GPUs but 3100 times quicker. The downside is that theyre harder to configure, and this is why they werent as commonly utilized in mining as GPUs. .

Finally, around 2013, a new breed of miner was introduced: the ASIC miner. ASIC stands for application specific integrated circuit, and these were bits of hardware manufactured only 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 are 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 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 bit. Since 2016, the pace at which new miners are published has slowed considerably.

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Assuming youre just entering the Bitcoin mining game, youre up against some heavy competition. Even in the event that you purchase the best potential miner on the market, youre still at a huge 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 capability to compete more effectively). Once the pool manages to win the competition, the payoff is spread out between the pool members depending on how much mining energy each of these 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 lot of things that you need to take into account for example:

Hash speed: A Hash is your mathematical problem the miners pc needs to solve. The hash rate refers to a miners performance (i.e., how many guesses your pc 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 out 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 occurred 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 cost: 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 electricity bill. The reason that is important is that miners consume see power, while for powering up the miner or for cooling down (those machines can become really hot). .

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

Pool prices: When youre mining through a mining pool (you go to the website should), then the swimming pool is going to take a certain percentage of your earnings for rendering their services. Generally, this would be somewhere around 2%.

Bitcoins cost: Since no one knows what Bitcoins price will probably be in the future, its hard to predict whether Bitcoin mining will be rewarding. If you are planning to convert your mined bitcoins to any other currency in the long run, this variable will have a significant impact on profitability.

Difficulty increase annually: This is probably the most important and elusive variable 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 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 the question is Bitcoin mining rewarding

Once you've got each 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 favorable result on the calculator, it probably means you dont have the ideal conditions for mining to be profitable. Look At This .