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Another evolution came after on with FPGA mining. FPGA is a piece of hardware that can be connected to a computer in order to run a pair of calculations. They're just like GPUs but 3100 times faster. The downside is that theyre more difficult to configure, which is 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 are pieces of hardware manufactured solely for the purpose of mining Bitcoin. Unlike GPUs, CPUs, and FPGAs, they couldnt be used to perform anything else. Their function was hardcoded into the 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 started out in 2013, the technology rapidly evolved, and new, stronger 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 pace 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 if you purchase the finest possible 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 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 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 your mathematical problem the reference miners computer needs to fix. 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 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 block: 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 (about four years). The current number of bitcoins awarded per block is 12.5. The final block-halving happened in July 2016, and the next one will probably be in 2020. .

Mining issue: A number that you can try this out represents how hard it's to mine bitcoins at any given moment considering the amount of mining power currently active in the system.

Electricity price: Just how many dollars are you paying each 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 power, whether for powering up the miner or for cooling down (these machines can become really hot). .

Power consumption: Every miner consumes a different amount of energy. Youll need to find out the exact power consumption of your miner before calculating profitability. This can be found easily with a fast search online or via this list. Power consumption is measured in watts.

Pool prices: If youre mining through a mining pool (you need to ), then the swimming pool is going to take a certain percentage of your earnings to rendering their services. Generally, this would be somewhere around 2 percent.

Bitcoins cost: Since no one knows what Bitcoins price will probably be in the long run, it's challenging to predict if Bitcoin mining will likely 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 annually: This is most likely the most important and elusive factor 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 difficult it will be to mine in six weeks, six months, or even six years from now.

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

Once you've got each of 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 will earn every month. If you cant get a favorable result on the calculator, it likely means you dont have the right conditions for mining to become rewarding. .