Two of the main factors that influence your profitability are: The Bitcoin network hash rate is growing at a rate of 0. Our calculator assumes the 0.
The Bitcoin Price Even though the network hash rate will cause your share of the network hash power to go down, the Bitcoin price can help make up some of these losses. The Bitcoin price is rising at a slightly lesser 0. We suggest you enter a custom Bitcoin price into our calculator based on what you expect the average price to be over the next year.
What our Calculator Assumes Since our calculator only projects one year out, we assume the block reward to be We also use the current Bitcoin price in our calculations, but you can change the Bitcoin price to anything you’d like to get better data. However, there are numerous factors that affect mining profitability, and often times they are out of your control.
Some seem to believe they will be able to quit their nine-to-five job after investing in a few Bitcoin miners — unfortunately, that is not necessarily the case. How do you know if mining is right for you? It is important to understand the constantly changing dynamics that play into mining profitability, especially before you invest your hard-earned money.
Nevertheless, a proper passive income can be generated if you play your cards right. Let’s explore the factors that you need to consider before you buy mining hardware: Initial Investment The initial investment in efficient mining hardware is probably one of the things keeping you from pulling the trigger, and for good reason.
Mining hardware is expensive! In case you were not aware, the vast majority of mining operations are in China, primarily because of cheap electricity more on that later. Since ASICs are expensive, many average consumers do not have the capital to invest.
Large mining corporations operate mining farms with thousands of ASICs. Instead of mining being spread out across the world, the validation process is controlled by fewer people than first anticipated upon Bitcoin’s inception.