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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 set of calculations. They are just like GPUs however 3100 times faster. The downside is that theyre harder to configure, which explains the reason why they werent as commonly utilized 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 are bits of hardware manufactured solely for the purpose of mining Bitcoin. Unlike GPUs, CPUs, and FPGAs, they couldnt be utilized to do anything else. Their function was hardcoded into this 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 years of this mad technological race, we finally reached a technological obstacle, and things started to cool down a bit. Since 2016, the pace at which new miners are released 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 potential miner out there, youre still in a massive disadvantage when compared with professional Bitcoin mining farms.

Thats why mining pools came into existence. The idea is simple: miners team together to form a pool (i.e., combine their mining power to compete more efficiently ). Once the pool manages to win the competition, the reward is distributed between the pool members depending on how much mining power each of these contributed.

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

When calculating Bitcoin mining profitability, 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 fix. The hash rate refers to your miners performance (i.e., how many guesses your computer can make per second). Hash rate can be quantified 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 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 given per block is 12.5. The final block-halving happened in July 2016, and the next one will be in 2020. .

Mining difficulty: A number that represents how difficult it is 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 currently paying each kilowatt Youll need to find out your energy rate in order to compute profitability. This can typically be found on your monthly electricity bill. The reason that is important is that miners consume power, whether for powering up the miner or for cooling it down (these machines can become really hot). .

Power consumption: Each 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 quick search online or through this listing. Power consumption is measured in watts.

Pool prices: 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 be in the future, it's challenging to predict if Bitcoin mining will 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 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 actually predict the rate of miners joining the network, neither can anyone predict just how hard it's going to be to mine in fourteen days, 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 this question is Bitcoin mining rewarding

Once you find this have all these factors 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 every month. In case you cant get a positive result on the calculator, it likely means you dont have the ideal conditions for mining to be profitable. .