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Another evolution came later on with FPGA mining. FPGA is a bit of hardware that can be connected to your computer in order to run a pair of calculations. They're only like GPUs however 3100 times faster. The downside is that theyre harder to configure, which is 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 were pieces 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 ancient ASIC miners even appeared in the kind of a USB, but they became obsolete rather 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 this mad technological race, we finally reached a technological barrier, and things started to cool down a little. Since 2016, the speed at which new miners are published 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 at a massive disadvantage when compared with professional Bitcoin mining farms.

Thats why mining pools came into existence. The notion is simple: miners group together to form a pool (i.e., combine their mining capability to compete more efficiently ). Once the pool manages to win the competition, the reward is distributed between the pool depending on how much mining energy each of them contributed.

Now there are more than a dozen large pools that 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 difficulty the miners pc needs to fix. The hash rate refers to your miners performance see it here (i.e., how many guesses your computer can make per second). Hash rate can be measured 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 block: The number of Bitcoins generated when a miner finds the solution. This number started at 50 bitcoins back in 2009, and its own halved every 210,000 cubes (approximately four years). The current number of bitcoins given 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 difficult it's to mine bitcoins at any given moment considering the amount of mining electricity currently active in the system.

Electricity cost: How many dollars are you currently paying per kilowatt Youll need to find out your energy rate in order to compute profitability. This can usually be found on your monthly electricity bill. The reason this is important is that miners consume electricity, whether for powering up the miner or for cooling it down (these machines can get 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 profitability. This can be found easily with a quick search online or through this list. Power consumption is measured in watts.

Pool prices: If youre mining by means of a mining pool (you need to ), then the swimming pool will take a certain percentage of your earnings for rendering their services. Generally, this could 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 likely be profitable. 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 annually: This is most likely the most important and elusive factor of all of them. The idea is that since no one can actually predict the speed of miners joining the network, neither can anyone predict how difficult it will 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 Provide a complete answer to this question is Bitcoin mining profitable

Once you've got each these variables 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 every month. If you cant get a positive effect on the calculator, then it likely means you dont have the ideal conditions for mining to become rewarding. .