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Another evolution came later on with FPGA mining. FPGA is a piece of hardware that can be connected to a computer in order to run a pair of calculations. They're only like GPUs however 3100 times quicker. The downside is that theyre more difficult to configure, and this explains 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 bits of hardware manufactured only for the purpose of mining Bitcoin. Unlike GPUs, CPUs, and FPGAs, they couldnt be utilized to perform anything else. Their function was hardcoded into the machine. .

Today, ASIC miners would be the current mining standard. Some ancient ASIC miners even appeared in the kind of a USB, but they became obsolete fairly quickly. Even though they began in 2013, the technology quickly evolved, and new, more powerful miners were coming out every six months.

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After about three years of this crazy technological race, we finally reached a technological obstacle, and things began to cool down a little. Since 2016, the pace 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 if you buy the best possible miner out there, youre still in a huge disadvantage compared to professional Bitcoin mining farms.

Thats why mining pools came into existence. The idea is simple: miners group together to form a pool (i.e., combine their mining power to compete more efficiently ). Once the swimming pool manages to win the competition, the payoff is distributed between the pool members depending on how much mining power each of these contributed.

Now there are over a dozen large pools that compete for the chance to mine Bitcoin and upgrade the ledger.

When calculating Bitcoin mining elevation, there are a lot of things you need to take into account for example:

Hash speed: A Hash is the mathematical problem the miners pc needs to fix. The hash rate refers to your miners performance (i.e., just how many guesses your pc can make per second). Hash rate can be measured in MH/s (mega hash per second), GH/s (giga hash each second), TH/s (terra hash per second), and even PH/s (peta hash per second). .

Bitcoin reward per cube: The number of Bitcoins generated when a miner finds the solution. This number began at 50 bitcoins back in 2009, and its own halved every 210,000 blocks (approximately four years). The current number of bitcoins awarded per block is 12.5. The final block-halving occurred in July 2016, and the next one will be in 2020. .

Mining issue: A number that represents how hard it's to mine bitcoins in any given moment considering the amount of mining power currently active in the system.

Electricity price: How many dollars are you currently paying each kilowatt Youll need to find out your electricity rate in order to compute profitability. This can usually be found on your monthly power bill. The reason this is important is that miners consume power, while for powering up the miner or for cooling down (those machines can become very hot). .

Power consumption: Each miner consumes a different amount of energy. Youll need to find out the specific power consumption of your miner before calculating adulthood. This can be found easily with a quick search online or via this list. Power consumption is measured in watts.

Pool fees: When youre mining by means of a mining pool (you should), then the swimming pool is going to take a certain percentage of your earnings for rendering their services. Generally, this could be somewhere around 2%.

Bitcoins cost: Since no one knows what Bitcoins price will be in the future, it's challenging to predict if Bitcoin mining will be profitable. 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 annually: This is most likely the most important and elusive variable of them all. The concept is that since no one can really predict the rate of 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 two factors are the reason no one will ever be able to Provide a complete answer to this question is Bitcoin mining rewarding

Once you have all of these variables at hand you can insert them into a Bitcoin mining calculator (as can be seen below) and find an estimate of how many Bitcoins you may earn every month. In my website case you cant get a favorable result on the calculator, it probably means you dont have the right conditions for mining to be profitable. .