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Another evolution came later on with FPGA mining. FPGA is a bit of hardware that can be connected to a computer in order to run a pair of calculations. They are only like GPUs but 3100 times faster. The downside is that theyre more difficult to configure, and this 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 are 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 the machine. .

Now, ASIC miners would be the current mining standard. Some early ASIC miners even emerged 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 obstacle, and things started to cool down a bit. Since 2016, the speed at which new miners are published has slowed considerably.

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Assuming youre just 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 compared to professional Bitcoin mining farms.

Thats why mining pools came into existence. The idea is straightforward: 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 payoff is distributed between the pool members 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 elevation, there are a lot of things that you need to take into account for example:

Hash speed: A Hash is your mathematical problem the miners computer needs to solve. The hash speed refers to your miners performance (i.e., just how many guesses your pc can make per second). Hash rate can be measured 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). .

Bitcoin reward per block: The number of Bitcoins generated when a miner finds out next the solution. This number started at 50 bitcoins back in 2009, and its halved every 210,000 cubes (about four years). The current number of bitcoins awarded per cube is 12.5. The final block-halving occurred in July 2016, and the next one will be in 2020. .

Mining issue: A number that represents how hard it is to mine bitcoins in any given moment considering the amount of mining electricity currently active in the system.

Electricity cost: Just how many dollars are you paying per kilowatt Youll need to find out your energy rate in order to calculate profitability. This can typically be found on your monthly electricity 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 get really hot). .

Power consumption: Every miner consumes a different amount of energy. Youll need to find out the specific power 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 fees: When youre mining by means of a mining pool (you should), then the pool is going to take a certain percentage of your earnings to rendering their services. Generally, this would be somewhere around 2%.

Bitcoins price: Since no one knows what Bitcoins price will be in the future, its hard to predict whether Bitcoin mining will be profitable. If you are planning to convert your mined bitcoins to any other currency in the future, this factor will have a significant impact on profitability.

Difficulty increase per year: This is probably the most important and elusive factor of them all. The concept is that since no one can actually predict the rate of miners joining the network, neither can anyone predict just how hard it will be to mine in six weeks, six months, or six years from now.

The last two factors are the reason no one will ever be able to Provide a complete answer to the question is Bitcoin mining rewarding

Once you have 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 may earn every month. If you cant get a positive effect on the calculator, you can look here it likely means you dont have the right conditions for mining to be rewarding. .