Is bitcoin mining profitable
This page aims to give a beginners explanation to the question "Is Bitcoin Mining Profitable in 2018?"
Profitability Variables in 2011-2016
- Network Hash Rate - What is the combined computing power of all of the network miners.
- Network mining difficulty - As more miners join the network the network difficulty increases in order to mine a constant amount of Bitcoins in a given time period.
- Electricity rate - How much money are you paying per per KW for running your miner.
- Power consumption - How much power is your miner consuming. This is measured in Watts and can be found here.
- Time frame - how long are you considering mining for.
- Cost of mining hardware - as described.
- BTC conversion rate - this is only important if you want to exchange your BTC to a different currency. If you wish to only gain Bitcoins you can disregard this variable, but since most people want to profit in some other currency it usually is important.
The problem of profitability decline
The biggest variable that can not be predicted is how much will the difficulty increase throughout time. This will in turn cause a profitability decline. In order to take this variable into account, several mining profitability calculators have incorporated a "profitability decline" factor. This factor of course is an educated guess at the most.
The problem of variating BTC exchange rate
Much like the network's difficulty, the Bitcoin's exchange rate can also not be predicted. It may stay the same throughout your predicted time frame, increase or collapse completely. This also makes predictions of mining profitability inaccurate.
The early days of Bitcoin mining are often described as a gold rush.
Satoshi Nakomoto’s invention of Bitcoin, “a peer-to-peer electronic cash system,” opened up an entirely new frontier, not just of freedom but of occasionally outrageous profits.
Those with a strong interest in such things, namely cypherpunks, cryptographers, technically-minded libertarians and assorted hackers, were first to stake their claim.
The fact is:
Bitcoin mining has grown from a handful of early enthusiasts into a cottage industry, into a specialized industrial-level venture. The easy money was scooped out a long time ago and what remains is buried under the cryptographic equivalent of tons of hard rock.
The sad truth is:
Only those with specialised, high-powered machinery are able to profitably extract bitcoins nowadays. While mining is still technically possible for anyone, those with underpowered setups will find more money is spent on electricity than is generated through mining.
In other words, mining won’t be profitable at a small scale unless you have access to free or really cheap electriciy.
Bitcoin Cloud Mining
Those, who do not have enough money to invest in mining and still want to mine Bitcoins, they can participate in Bitcoin cloud mining. In this method, you do not need to buy a mining rig, hardware or software, you just get paid for what you earn. Sound like a cool idea, as there is no need to spend money on expensive equipment, electricity, and cooling etc. However, before getting into mining, read about the testimonials and company as there are plenty of mining companies who are doing the scams.
Is it profitable to mining bitcoin at home in 2018?
At home — earlier it was possible to mine on video cards, but now, with growth of number of participants mining of system, and computing capacities have to be strongly big. And mined bitcoins in profit on a home computer or laptop will not work.
If you calculate the cost of the graphics card, the price of electricity, power consumption the output is a loss.
The conclusion is: mining bitcoin at home, unprofitable idea!
But, you can buy or build a mining farm, for example to get bitcoin and other currencies. For example now, many miners at home mining Ethereum
Bitcoin mining on video cards in 2018
- Simple mining farm for home
- Even on the most powerful installation for an hour it is possible to earn 0,19 VTS and it is about 500 dollars, at the present rate.
- During this period, it does not cover even their electricity costs. It is just for bitcoin mining!
The General conclusion is: Bitcoin mining as we used to understand it does not bring income.
Bitcoin mining profitability calculators
- Bitcoin difficulty chart
- Bitcoin hash rate chart
- Is Bitcoin Mining Profitable - A beginners' explanation