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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 pair of calculations. They're only like GPUs but 3100 times faster. The downside is that theyre harder to configure, and this explains the reason why they werent as commonly utilized in mining since 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 solely for the purpose of mining Bitcoin. Unlike GPUs, CPUs, and FPGAs, they couldnt be used to do anything else. Their function was hardcoded into this machine. .

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

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After about three decades of the mad 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 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 possible miner out there, youre still at a huge disadvantage compared to professional Bitcoin mining farms.

Thats why mining pools came into existence. The idea is simple: miners group 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 payoff is spread out between the pool members depending on how much mining power each of these contributed.

Now there are more than a dozen large pools which compete for the chance to mine Bitcoin and upgrade the ledger.

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

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

Electricity price: 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 electricity bill. The reason that is important is that miners consume electricity, while for powering up the miner or for cooling it down (these machines can get really hot). .

Power consumption: Every 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 prices: If youre mining by means of a mining pool (you should), then the pool is additional reading going to take a certain percentage of your earnings for rendering their services. Generally, this would be somewhere around 2%.

Bitcoins cost: Since no one knows what Bitcoins price will be in the future, it's challenging to predict whether Bitcoin mining will likely be rewarding. If you are planning to convert your mined bitcoins to any other currency in the long run, this factor will have a significant impact 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 actually predict the rate of miners joining the network, neither can anyone predict just how hard it will be to mine in six weeks, six months, or even six years from now.

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

Once you have all of these factors 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 each month. If you cant get a favorable effect on the calculator, then it probably means you dont have the right conditions for mining to be profitable. .