Is Bitcoin Mining Profitable or Worth it in 2018? The early days of Bitcoin mining are often described most cost effective bitcoin mining rig a gold rush.
Those with a strong interest in such things, namely cypherpunks, cryptographers, technically-minded libertarians and assorted hackers, were first to stake their claim. But is there still gold in them thar hills? Bitcoin mining has grown from a handful of early enthusiasts into a cottage industry, into a specialized industrial-level venture. The easy money was scooped out a long time ago and what remains is buried under the cryptographic equivalent of tons of hard rock.
Only those with specialised, high-powered machinery are able to profitably extract bitcoins nowadays. While mining is still technically possible for anyone, those with underpowered setups will find more money is spent on electricity than is generated through mining. In other words, mining won’t be profitable at a small scale unless you have access to free or really cheap electriciy. A new block is created on average every ten minutes.
Proof of Work Hashing: This is the cryptographic work which miners perform in order to find the solution which allows them to define a new block. PoW hashing ensures the proper function of the Bitcoin blockchain. There are no shortcuts in this process, which can only be solved with raw computational power. By correctly hashing the current block, miners prove their investment of work and are rewarded with a certain number of newly-created bitcoins. The number of newly-created bitcoins, awarded to whichever miner creates a block. This number was initially set to 50, halved to 25 in late-2012, and halved again to 12. The next halving event expected is around mid-2020.
210,000 blocks, until all 21 million bitcoins are created. Hashrate: Hashrate is the measure of a miner’s computational power. In early 2017, Bitcoin’s collective hashrate reached nearly 4 Exahash. D of such hardware, and electrical expenditure.
Difficulty: With hashrate shooting up over the years, it would seem blocks would be found by miners ever more rapidly. Bitcoin’s Difficulty measure is what prevents this from happening. It adjusts to hashrate to ensure that blocks are found roughly every 10 minutes. Note how closely Difficulty matches Hashrate in the 2 charts above.
Electricity is the major on-going cost of Bitcoin mining. The price paid per Watt will greatly influence profitability. By banding together with other miners in a so-called pool, your combined odds of solving a block rise proportional to the pool’s total hashrate. The future profitability of mining cannot be reliably predicted. This is due to the ever-changing nature of the Difficulty modifier and the BTC price, in particular. To begin, we must select a suitable ASIC mining rig.
It’s pretty much the cutting edge of mining tech so we’ll select it for our example. 120 or so to the price. Next, we need to enter the S9’s specs and cost, as well as other info such as power cost and pool fees, into a suitable number-cruncher. BTC price, Difficulty and block reward info. Note that the Hardware Costs field does not seem to influence the final calculation. Chinese industrial area or one in which electricity is subsidized.
To determine your own power cost, check worldwide electricity prices or your utility bill for the exact price. Pool Fee assumes a mining farm large enough to run its own pool. Smaller pools will generally offer lower or even no fees, but keep in mind they will seldom find blocks. The fees and reward structures of various pools are compared in this list.