Vietnam Proposes Import Ban on Bitcoin Mining Equipment – Bitcoin News

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Profit calculators on the internet may fail to provide the full feature as they do not factor in all the situations. Mining difficulty increases with time, and so does the amount of Bitcoin you are able to mine. Profit calculators do not capture this fact, and that may provide misleading information at the onset of mining. It is therefore imperative to note that mining hardware will generate less Bitcoin over time translating into less and lesser profits.

Bitcoin difficulty affects your profit

Once you note that the amount of Bitcoin you are getting is less valuable than the money being poured into running the Bitcoin mining equipment, then it is time to stop the mining. Hopefully, by this time you will have covered the cost of purchasing the Bitcoin mining hardware and other running costs.

Bitcoin difficulty Profitability in Bitcoin mining is dependent on one thing, and that is Bitcoin difficulty. If blocks are being mined within a specific period of time, the difficulty is adjusted upwards. This makes it harder to mine Bitcoin. As more and more miners increase, the hash rate mining rate increases necessitating the need for an increase in Bitcoin difficulty. The difficulty fluctuates with time rising at times and sometimes reducing.

However, the difficulty goes up on average.

Decision to Ban Mining Imports

Bitcoin mining, therefore, is volatile just as the currency itself and this is as a result of Bitcoin difficulty. Miners make speculations on the difficulty they think they may receive on a particular month and make rough estimates on the profits they hope to make. There is a correlation however with the rise in the value of Bitcoin and Bitcoin difficulty seen when many miners are incentivized to mine when the value of Bitcoin surges hence increase in Bitcoin difficulty.

Mining Hardware Initially, desktop processors were sufficient in mining Bitcoin, but as earlier mentioned, the difficulty increased necessitating more powerful and more specialized processors.