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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 set of calculations. They are only like GPUs but 3100 times quicker. The downside is that theyre more difficult to configure, which explains the reason why they werent as commonly utilized in mining since 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 perform anything else. Their function was hardcoded into this machine. .

Today, ASIC miners are 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 began 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 this mad technological race, we finally reached a technological obstacle, and things started 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 game, youre up against some heavy competition. Even in the event that you purchase the best possible miner out there, youre still in a massive disadvantage when compared with professional Bitcoin mining farms.

Thats why mining pools came into existence. The idea is simple: miners group together to form a pool (i.e., combine their mining power to compete more effectively). Once the pool manages to win the competition, the reward is distributed 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 for example:

Hash rate: A Hash is the mathematical problem the miners pc needs to fix. The hash rate refers to your 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 per second), TH/s (terra hash per second), and even PH/s (peta hash per second). . additional resources

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 own halved every 210,000 blocks (approximately four years). The current number of bitcoins awarded per cube is 12.5. The last block-halving occurred in July 2016, and the next one will probably be in 2020. .

Mining issue: 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 each kilowatt Youll need to find out your electricity rate in order to calculate profitability. This can usually 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 it down (those machines can become really 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 prices: When youre mining through a mining pool (you should), then the swimming pool is going to take a certain percentage of your earnings for rendering their service. Generally, this would be somewhere around 2 percent.

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're planning to convert your mined bitcoins to any other currency in the long run, this factor will have a significant impact on profitability.

Difficulty increase per year: This is probably the most important and elusive variable 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 hard it's going to be to mine in six weeks, six months, or even six years from now.

The last two variables are the reason no one will ever Have the Ability to give a complete answer to this question is Bitcoin mining profitable

Once you have all 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 each month. If you cant get a positive result on the calculator, it probably means you dont have the right conditions for mining to become rewarding. .