Join over 94,000 students, learn all you need to know about Bitcoin. One Email a Day, 7 Days in a Bitcoin 27th. Is Bitcoin Mining Profitable in 2018?
Each person asking himself this will get a slightly different answer since Bitcoin Mining profitability depends on many different factors. These calculators take into account the different parameters such as electricity cost, the cost of your hardware and other variables and give you an estimate of your projected profit. A Hash is the mathematical problem the miner’s computer needs to solve. The Hash Rate is the rate at which these problems are being solved. The more miners that join the Bitcoin network, the higher the network Hash Rate is.
The Hash Rate can also refer to your miner’s performance. Each time a mathematical problem is solved, a constant amount of Bitcoins are created. The current number of Bitcoins awarded per block is 12. The last block halving occurred on July 2016 and the next one will be in 2020. Since the Bitcoin network is designed to produce a constant amount of Bitcoins every 10 minutes, the difficulty of solving the mathematical problems has to increase in order to adjust to the network’s Hash Rate increase.
Basically this means that the more miners that join, the harder it gets to actually mine Bitcoins. Operating a Bitcoin miner consumes a lot of electricity. You’ll need to find out your electricity rate in order to calculate profitability. This can usually be found on your monthly electricity bill. Each miner consumes a different amount of energy. Make sure to find out the exact power consumption of your miner before calculating profitability.
This can be found easily with a quick search on the Internet or through this list. Power consumption is measured in Watts. In order to mine you’ll need to join a mining pool. A mining pool is a group of miners that join together in order to mine more effectively.
The platform that brings them together is called a mining pool and it deducts some sort of a fee in order to maintain its operations. When calculating if Bitcoin mining is profitable you’ll have to define a time frame to relate to. Since the more time you mine, the more Bitcoins you’ll earn. This is probably the most important and elusive variable of them all.
The idea is that since no one can actually predict the rate of miners joining the network no one can also predict how difficult it will be to mine in 6 weeks, 6 months or 6 years from now. The second reason is the conversion rate. USD exchange rate will be in the future it’s hard to predict if Bitcoin mining will be profitable. If you’re into mining in order to accumulate Bitcoins only then this doesn’t need to bother you. But if you are planning to convert these Bitcoins in the future to any other currency this factor will have a major impact of course.