How To Calculating Profitability of Bitcoin Mining

Bitcoin Cash Bitcoin - How To Calculating Profitability of Bitcoin Mining. Bitcoin's mining profitability is something that is always changing.

With Bitcoin having such a high difficulty and great desire, sometimes profitability can happen in some ways.
bitcoin mining profitability

Calculating Bitcoin Mining Profitability

The first set of data you want to use to find out whether Bitcoin mining may benefit you or not is the following but is not limited to:
  • Miner cost Bitcoin ASIC (s)
  • The cost of electricity for the miners (how much you charge per kwh)
  • Cost of equipment to run the miner (s)
  • PSU charge (power supply unit)
  • The cost of network equipment
  • Internet access charges
  • The cost of other supporting equipment such as shelves, racks, cables, etc.
  • Building cost or data center if any
  • Bitcoin key value during the miners age

Taking all these factors into account will give you a rough investment return date (ROI), which is the date on which all components are paid for by your mining revenues. Some reoccurring though like the cost of electricity, internet access, and the cost of building or data center if applicable.

bitcoin mining costs

Bitcoin Mining Tool (ilustrated).

As noted, the key to achieving ROI is the value of Bitcoin, as we all know has high volatility, sometimes with extreme changes. This sometimes makes the calculation of profitability problematic. Your goal is to mine bitcoin at current value as efficiently as possible. This means buying the most up-to-date equipment when you buy it unless you can get some ASICs that are generations or more that are cheap enough to still make more on bitcoin than electricity. The latest Bitcoin gene ASIC miners are typically stronger using less power per gh/s.

With increasing difficulty, it can also reduce your profits if you take up less part of the rewards of the block due to the increased number of pilgrims. Difficulty rising or falling based on how fast or slow the block time is. Block time is the time it takes to set transactions to be recorded and hashes created in blockchain. Bitcoin targets for block time ~ 10 minutes and will reset approximately every two weeks based on the average time to complete (process) one block. If over a period of time more miners are added to the network allowing a block to be solved in less than ~ 10 minutes, the difficulty will increase to slow the generation of blocks to ~ 10 minutes. If enough of the hashrate has left the network and the blocks are solved for more than ~ 10 minutes, the difficulty will go down so that miners can process blocks in intervals of approximately ~ 10 minutes. You will want the hashrate to be quite stable as it will keep the amount of bitcoin you receive for mining approximately the same. If the Bitcoin value persists or rises it will also help.

Bitcoin dot com has launched its own pool mining operation along with a cloud mining contract at competitive prices, which you can register and start mined today. There is also a great third party tool created by Gray Wyvern to estimate your return on investment in Bitcoin Pool based on some user-insertable variables that will calculate profitability.
bitcoin dot com change the way you view the world

Bitcoin change the way you view the world.

As you can see Bitcoin's profitability is a moving target so be vigilant in monitoring your costs every month to earn rewards and value upon receipt. Keep an eye on the pool mining costs as they are free and others not with a percentage or more added to your mining costs. The higher Bitcoin value the longer you can run your mining equipment profitably as long as the total hashrate does not continue and it also causes difficulty to keep your income even down or down over time.

While running your own mining equipment can be fun and at a lucrative time it's not always something you can do at home. Miners produce a lot of heat and noise. It needs to be considered where you will place your miners. Most can not be run at home unless you have a garage, basement or room that can handle heat and noise. In this case you may want to host your miners in the data center or elsewhere as appropriate. If you want to be able to mine without the hassle of the physical miners themselves you can use cloud mining or hosting services.
If you start mining in Bitcoin dot com mining ponds and have questions to get started, costs, or payments, just sign in and go to the Getting Started page to read some common questions and answers. There is also a community forum where users can engage with other miners.
Also Read:
What is Bitcoin and Why is Bitcoin Important?
Bitcoin Mining Pool Exactly Meaning! A Guide for Miner

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