is bitcoin mining profitable

It depends on a lot of factors. When calculating bitcoin mining profitability, there are a lot of factors you need to consider.

1.Hash Rate

A Hash is a mathematical problem that a miner’s computer needs to solve. Hash Rate usually depends on miner’s performance and the number of guesses made per second by the computer. Hash rate can be measured in Mega Hash per second(MH/S), Giga Hash per second(GH/S), Terra Hash per second(TH/S) and Peta Hash per second(PH/S).

2. Block Reward

Block Reward refers to the number of bitcoins generated when a miner finds the solution. Block Reward started at 50 bitcoins in 2009 and is halved every 210,000 blocks about four years. Currently, 12.5 bitcoins are being awarded for each block.

3. Mining Difficulty

Mining Difficulty is a number that represents how hard it is to mine bitcoins at a particular moment.

4. Cost of Electricity

It requires electricity to mine bitcoin. For a miner, electricity is required for powering up the miner and for cooling it down. Just like the electricity bill, it costs a couple of dollars for each kilo watt(KW). Profit is dependent on electricity rate.

5. Power Consumption

Since each miner consumes different amount of energy, it depends upon the exact power consumption of each miner before calculating profitability. Power consumption is measured in Watts(W)

6. Pool Fees

When you are mining in a pool, the pool will take a certain percentage of your earnings since you have used their service.

7. Bitcoin Price

Since we can’t really predict the value of bitcoin in the future, its hard to say that bitcoin mining will be profitable.

8. Difficulty Increase

the most important factor is difficulty increase. Since no one can predict the rate of miners joining the network, so it’s difficult to say the value of bitcoin in the future.

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