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Another evolution came after on with FPGA mining. FPGA is a piece of hardware which can be connected to your computer in order to run a set of calculations. They're only like GPUs however 3100 times faster. The downside is that theyre harder to configure, and this is why they werent as commonly used in mining as GPUs. .

Finally, around 2013, a new breed of miner was introducedthe ASIC miner. ASIC stands for application specific integrated circuit, and these are pieces of hardware manufactured only for the purpose of mining Bitcoin. Unlike GPUs, CPUs, and FPGAs, they couldnt be used to do anything else. Their function has been hardcoded into the machine. .

Today, ASIC miners are the current mining standard. Some early ASIC miners even appeared in the form of a USB, but they became obsolete fairly quickly. Even though they started out in 2013, the technology rapidly evolved, and new, stronger miners were coming out every six months.

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After about three years of the mad technological race, we finally reached a technological obstacle, and things started to cool down a little. Since 2016, the speed at which new miners are published has slowed considerably.

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Assuming youre just entering the Bitcoin mining game, youre up against some heavy competition. Even if you purchase the best potential miner on the market, youre still in a massive disadvantage compared to professional Bitcoin mining farms.

Thats why mining pools came into existence. The idea is simple: miners team together to make a pool (i.e., combine their mining capability to compete more efficiently ). Once the swimming pool manages to win the competition, the reward is spread out between the pool members depending on how much mining energy each of them contributed.

Now there are more than a dozen big pools that compete for the chance to mine Bitcoin and update the ledger.

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

Hash rate: A Hash is your mathematical problem the miners pc needs to fix. The hash speed refers to a miners performance (i.e., how many guesses your computer can make per second). Hash rate can be quantified in MH/s (mega hash per second), GH/s (giga hash per 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 started at 50 bitcoins back in 2009, and its own halved every 210,000 blocks (about four years). The current number of bitcoins given per block is 12.5. The final block-halving happened in July 2016, and the next one will probably be in 2020. .

Mining issue: 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: Just how many dollars are you paying each kilowatt Youll need to find out your electricity rate in order to compute profitability. This can typically be found on your monthly power bill. The reason that is important is that miners consume power, whether for powering up the miner or for cooling it down (those machines can get very hot). .

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

Pool fees: If youre mining by means of a mining pool (you need to ), then the pool will take a certain percentage of your earnings for rendering their service. Generally, this could 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 likely be profitable. If you're planning to convert your mined bitcoins to any other currency in the long run, this factor will have a significant influence on profitability.

Difficulty increase annually: This is most likely the most important and elusive variable of all of them. The idea is that since no one can really predict the speed of miners joining the network, neither useful reference can anyone predict just how difficult it's going to be to mine in fourteen days, six months, or six years from now.

The last two variables are the reason no one will ever be able to Provide a complete answer to this question is Bitcoin mining rewarding

Once you have each these variables 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 will earn every month. If you cant get a favorable result on the calculator, it likely means you dont have the right conditions for mining to become profitable. .