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Another evolution came later on with FPGA mining. FPGA is a piece of hardware that can be connected to your computer in order to run a pair of calculations. They are only like GPUs but 3100 times quicker. 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 solely 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 would be the current mining standard. Some early ASIC miners even appeared in the form of a USB, but they became obsolete rather quickly. Even though they began 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 barrier, 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 simply entering the Bitcoin mining match, youre up against some heavy competition. Even if you buy the finest potential miner on the market, youre still in a massive disadvantage compared to 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 payoff is distributed between the pool depending on how much mining power each of these contributed.

Now there are more than a dozen big pools which compete for the chance to mine Bitcoin and upgrade the ledger.

When calculating Bitcoin mining profitability, there are a Great Deal of things you need to take into account for example:

Hash rate: A Hash is your mathematical difficulty the miners pc needs to fix. The hash rate refers to a miners performance (i.e., how many guesses your computer can make per second). Hash rate can be quantified in MH/s (mega hash per second), GH/s (giga hash per 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 cubes (approximately four years). The current number of bitcoins awarded per cube is 12.5. The last block-halving happened in July 2016, and the next one will 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 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 typically be found on your monthly power bill. The reason this is important is that miners consume power, while for powering up the miner or for cooling it down (those machines can become very 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 profitability. This can be found easily with a fast search online or through this list. Power consumption is measured in watts.

Pool fees: When youre mining through a mining pool (you need to ), then the pool is going to take a certain percentage of your earnings for rendering their services. Generally, this could be somewhere around 2%.

Bitcoins cost: Since no one knows what Bitcoins price will be in the future, it's challenging to predict if Bitcoin mining will be rewarding. If you're planning to convert your mined bitcoins to any other like it currency in the future, 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 actually predict the rate 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 be able to Provide a complete answer to this question is Bitcoin mining rewarding

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 will earn each month. In case you cant get a find favorable result on the calculator, then it likely means you dont have the right conditions for mining to be rewarding. .