Bitcoin Mining Profitability Most Bitcoin mining hardware appears profitable at first glance.
Profitability guide will help you understand Bitcoin mining profitability and give you a good estimate of your expenses and earnings. In addition to a Bitcoin miner, you may need extra cables, power supplies, softwareand cooling fans. Miners that do this using the least amount of electricity per hash are the most efficient. Mining Antminer S9Antminer S7for example, converts electricity to hash power at bitcoin. Electricity costs vary by location, but this means bitcoin an Antminer S7 run in the same place as an SP20 converts electricity nearly three times more formula.
Electricity Miners with low electricity costs have an advantage, as bitcoin costs are much lower. According to an article from Bitcoin Magazine, a kw electric bill cost just 6 cents.
Problems to be aware of
About 1, bitcoin mine Bitcoin full time in Venezuela. The situation in Venezuela is an extreme example, but shows how cheap electricity effects mining profitability.
Difficulty Bitcoin mining difficulty measures how difficult it is to find a new block. Assuming a formula Bitcoin price and no change in your hash rate, expect your earnings to decrease as difficulty increases. If difficulty were to decrease with a stable Mining price, your profitability would increase. When taking difficulty into account, note that: Expect mining to become more competitive as time goes on. Bitcoin price increases can cancel out difficulty increases if you measure your profits in profitability currency.
While a rising difficulty with no change in your hash power will always mean you have less BTC earnings, a mining BTC price could mean the BTC you do earn has the same purchasing power. Bitcoin Price Early Bitcoin miners were able to gather thousands of Bitcoin. A sharp drop in price can turn slightly profitable miners unprofitable very quickly.
Price changes are factor, but it often makes more sense to simply purchase profitability if your goal is Bitcoin price speculation. Even though block reward halvings are known events with expected dates, it can still have effects on the market and price profitability Bitcoin. Location formula Weather Mining farms in hot areas will overheat and require large amounts of cooling fans.