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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're just like GPUs however 3100 times faster. The downside is that theyre more difficult to configure, and this is the reason why they werent as commonly used 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 are 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 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 fairly 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 the crazy technological race, we finally reached a technological barrier, and things began to cool down a bit. Since 2016, the speed at which new miners are released has slowed considerably.

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Assuming youre simply entering the Bitcoin mining game, youre up against some heavy competition. Even in the event that you purchase the best potential miner out there, youre still in a huge disadvantage when compared with professional Bitcoin mining farms.

Thats why mining pools came into existence. The idea 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 depending on how much mining energy each of these contributed.

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

When calculating Bitcoin mining elevation, there are a lot of things you need to take into account for example:

Hash rate: A Hash is the mathematical difficulty the miners pc needs to solve. The hash rate refers to your miners performance (i.e., just 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 out the solution. This number began at 50 bitcoins back in 2009, and its own halved every 210,000 blocks (about four years). The current number of bitcoins awarded per block is 12.5. The last block-halving happened 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 electricity currently active in the system.

Electricity price: Just how many dollars are you 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 power, whether 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 exact energy consumption of your miner before calculating profitability. This can be found easily with a fast search online or via this listing. Power consumption is measured in watts.

Pool prices: If youre mining through a mining pool (you need to ), then the pool is going to take a certain percentage of your earnings to rendering their service. Generally, this could 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 be profitable. If you're planning to convert your mined bitcoins to any other currency in the future, this factor will have a significant influence on profitability.

Difficulty increase per year: This is most likely the most important and elusive variable of all of them. The idea is that since no one can really predict the rate of miners joining the network, neither can anyone predict just how hard it will be to mine in fourteen important site days, 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 the 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 may earn each month. In case you cant get a favorable result on the calculator, it probably means you dont have the right conditions for mining to be profitable. .