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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 are just like GPUs but 3100 times faster. The downside is that theyre harder to configure, and this explains the reason why they werent as commonly used in mining since GPUs. .

Finally, around 2013, a new breed of miner was introducedthe ASIC miner. ASIC stands for application specific integrated circuit, and these were bits of hardware manufactured solely for the purpose of mining Bitcoin. Unlike GPUs, CPUs, and FPGAs, they couldnt be utilized to perform anything else. Their function was hardcoded into the machine. .

Today, ASIC miners are 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 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 pace at which new miners are published has slowed considerably.

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Assuming youre just entering the Bitcoin mining match, youre up against some heavy competition. Even if you purchase the finest possible miner on the market, 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 team together to make a pool (i.e., combine their mining power to compete more effectively). Once the swimming pool manages to win the competition, the reward is spread out between the pool depending on how much mining energy each of these contributed.

Today there are more than a dozen big pools that compete for the chance to mine Bitcoin and update the ledger.

When calculating Bitcoin mining elevation, there are a lot of things you need to take into account for example:

Hash speed: A Hash is your mathematical problem the miners pc needs to solve. The hash rate refers to a miners performance (i.e., how many guesses your pc can make per second). Hash rate can be measured 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 the solution. This number began at 50 bitcoins back in 2009, and its halved every 210,000 cubes (approximately four years). The current number of bitcoins awarded per block is 12.5. The last block-halving occurred in July 2016, and the next one will be in 2020. .

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

Electricity price: How many dollars are you paying each kilowatt Youll need to find out your energy rate in order to calculate profitability. This can usually be found on your monthly power bill. The reason that is important is that miners consume electricity, while for powering up the miner or for cooling down (those 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 adulthood. This can be found easily with a fast search online or through this list. Power consumption is measured in watts.

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

Bitcoins price: Since no one knows what Bitcoins price will probably be in the future, it's challenging to predict if Bitcoin mining will likely be rewarding. If you are planning to convert your mined bitcoins to any other currency in the long run, this factor will have a significant impact anchor on profitability.

Difficulty increase annually: This is most likely 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 just how hard 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 be able to give a complete answer to this question is Bitcoin mining profitable

Once you have each click to investigate 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. In case you cant get a favorable effect on the calculator, it probably means you dont have the ideal conditions for mining to be profitable. .