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Another evolution came after on with FPGA mining. FPGA is a bit of hardware which can be connected to your computer in order to run a pair of calculations. They're only like GPUs but 3100 times faster. The downside is that theyre harder to configure, which 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 were 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 this machine. .

Now, ASIC miners would be the current mining standard. Some ancient ASIC miners even emerged in the form of a USB, but they became obsolete rather quickly. Even though they started out in 2013, the technology rapidly 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 barrier, and things began to cool down a little. Since 2016, the speed at which new miners are released has slowed considerably.

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Assuming youre just entering the Bitcoin mining game, youre up against some heavy competition. Even in the event that you purchase the finest possible miner out there, youre still at a massive disadvantage compared to professional Bitcoin mining farms.

Thats why mining pools came into existence. The notion is straightforward: miners team together to make a pool (i.e., combine their mining capability to compete more effectively). Once the pool manages to win the competition, the payoff is distributed between the pool depending on how much mining energy each of them contributed.

Today there are over a dozen large pools which 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 rate: A Hash is your mathematical difficulty the miners computer needs to fix. The hash rate refers to a miners performance (i.e., just how many guesses your computer 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 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 block is 12.5. The final block-halving happened in July 2016, and the next one will probably be in 2020. .

Mining issue: additional resources 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 cost: How many dollars are you paying per kilowatt Youll need to find out your energy rate in order to compute profitability. This can usually be found on your monthly electricity bill. The reason that is important is that miners consume electricity, whether for powering up the miner or for cooling it down (these machines can get very 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 profitability. This can be found easily with a quick search online or through this list. Power consumption is measured in watts.

Pool fees: If youre mining by means of a mining pool (you need to ), then the pool is going to take a certain percentage of your earnings to rendering their service. Generally, this would be somewhere around 2 percent.

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

Difficulty increase per year: This is probably the most important and elusive variable of them all. The concept is that since no one can really predict the speed of you can find out more miners joining the network, neither can anyone predict how difficult it's going to be to mine in fourteen days, six months, or six years from now.

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

Once you've got 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 may earn every month. If you cant get a positive result on the calculator, then it likely means you dont have the right conditions for mining to be profitable. .