Steven Buchko Is Bitcoin mining profitable? Depends on how much hardware you have and the cost of electricity where you’ll be mining.
Up to $230 Million in Mining Revenue
If the cost of electricity is high, likely not, and if you don’t have an ASIC mining rig, also likely not. Is Bitcoin mining worth it? How to mine Bitcoins? This is a simple question with a complex answer. There are a few different factors that influence whether or not Bitcoin mining will be worth it for you. The primary factors that affect your Bitcoin mining profitable are: Mining difficulty and rewards Operational costs Mining difficulty and rewards The mining difficulty determines the complexity of the algorithm you need to solve when creating a new block of transactions.
As more miners join the network, the difficulty increases making Bitcoin harder to mine.
The purpose of mining
The reward for mining a block is currently Ideally, the price of Bitcoin will increase enough to outweigh the continuing decline of the mining reward. You should also factor in the conversion rate of Bitcoin to fiat if you plan on cashing out at any time. The biggest unknown when calculating your projected Bitcoin mining profitable is the amount of yearly profitability decline.
Hash rate The hash rate is the speed at which your mining rig can solve the algorithm needed to mine new blocks. Although a mining rig with a high hash rate may seem nice, they usually cost significantly more to purchase and operate.
Even though the hash rate may be lower, you may be able to pay off the initial purchase cost at a faster rate.
Operational costs There are a few different costs you need to consider when calculating your Bitcoin mining profitability. The electrical costs differ based on your electricity rate and the power consumption of your mining rig.
What is ‘Bitcoin Mining’
A mining pool is a group of miners that work together to mine blocks at an increased rate. The reward of each block is then split amongst the miners enabling you to get paid more regularly. You should also include the upfront cost of buying a mining rig when calculating your potential profitability..