**Bitcoin Mining Calculator**\- Enter your Bitcoin mining hashrate, power consumption in watts, and costs.
Most accurate Bitcoin mining calculator trusted by millions of crypto miners since May 2013. Best Bitcoin mining profitability calculator with difficulty preloaded along with the newest ASIC Bitcoin miner specs (hashrate, watts, & kWh) for 2021.
Our Bitcoin mining calculator makes it simple and easy to quickly see Bitcoin mining profitability based on hashrate, power consumption, and costs. Default inputs are preloaded with the latest Bitcoin difficulty target and Bitcoin mining hashrate for the best Bitcoin miner.
Calculate Bitcoin mining profit using one of these Bitcoin miners. Select or click a miner to have the inputs preloaded automatically. Then simply click the "Calculate Mining Profit" above.
Every aspect of our Bitcoin mining calculator has been developed for miners by miners.
The latest version of the Bitcoin mining calculator makes it simple and easy to quickly calculate Bitcoin mining profits by adjusting the mining hashrate values or by selecting one of the Bitcoin mining hardware devices from the ASIC Bitcoin miners list.
The Bitcoin mining information is updated continually with the current block mining information. This information is used as the default inputs for the BTC mining calculator along with the default hashrate and wattage specs from the best ASIC Bitcoin miner.
With this information and our backend hashrate calculator, you can calculate your BTC mining profits - providing valuable and strategic profitability information allowing you as the miner to make better-informed decisions about Bitcoin mining.
Along with the Bitcoin mining profitability, the list of top 5 ASIC Bitcoin miners is updated frequently. A Bitcoin miner is also referred to as a Bitcoin mining rig, or a Bitcoin mining hardware device, or a Bitcoin mining machine, but we simply call them miners, or more specifically, Bitcoin miners.
Each BTC mining calculator input has been preloaded with the best Bitcoin mining hardware hashrate and energy consumption in watts, average electricity costs as well as the current Bitcoin price, Bitcoin block reward, and Bitcoin difficulty.
Calculate your Bitcoin mining profitability and estimated mining rewards by starting with the Bitcoin mining hashrate calculator inputs above; mining hardware, mining costs, and mining reward.
Bitcoin mining is the process of securing and validating Bitcoin transactions on the Bitcoin blockchain.
In order to secure and validate transactions - Bitcoin miners are constantly trying to solve the next Bitcoin block.
This process requires an enormous amount of computing power, which is represented by the Bitcoin hashrate.
The Bitcoin hashrate is a number of possible solutions (hashes) being generated per second. As of January 2020, the Bitcoin hashrate peaked at 131 EH/s.
**When a Bitcoin miner finds the correct hash to solve the next Bitcoin block, the miner is rewarded with Bitcoin. Currently, 6.25 Bitcoin is created when a block is solved.**
To start mining Bitcoin, you’ll need cheap electricity (a lot of it), an internet connection, and at least one Bitcoin mining hardware device - an ASIC Bitcoin miner.
In the very early days (2009-2011) you could mine Bitcoin with a CPU, then mining software was created to utilize the computing power of a GPU, then came FPGAs, and in 2013 the first ASIC Bitcoin mining devices became available.
Now, all Bitcoin mining is done using an ASIC Bitcoin miner as it is no longer profitable to mine with a CPU, GPU, or FPGA.
That being said, most ASIC miners require 220 volts or higher and at least 20 AMPs. You can check the Bitcoin miner specs to see the power requirements.
At this point, you should determine your available power capacity in wattage at the location where you’ll be mining.
If you have a 200 AMPs electrical service with 220 volts, then the total power capacity is 200 AMPs \* 220 volts = 44,000 watts.
But you never want to use more than 75% of that capacity, otherwise, you’ll trip the breakers.
So, 44,000 watts becomes 33,000 watts of usable power capacity.
Now that you know how much power capacity you have (more is better), you can determine how many miners you can run. In this case, it would be about 11 Bitmain Antminer S17+ at 2,920 watts per device.
Once you have the Bitcoin mining hardware in hand, the last step is to configure each miner.
Typically, the configuration consists of setting the Bitcoin mining pool, username, and password.
Most Bitcoin mining device manufacturers provide a guide on how to configure the Bitcoin mining hardware.
Given the Bitcoin hashrate, it is statically impossible to generate enough hashes to solve a Bitcoin block mining solo (by yourself).
To increase the chances of solving a Bitcoin block, you can join a pool of other miners all working together to solve a block.
Once a block is solved the Bitcoin mining reward is split between the pool participants.
And in turn, the Bitcoin mining pool charges a small fee, typically 1% to 4%.
Yes, mining Bitcoin is still profitable - based on the mining hardware hashrate of 110.00 TH/s, electricity costs, and pool/maintenance fees provided.
While mining Bitcoin is still profitable as of right now...
The blockchain is constantly growing and the Bitcoin difficulty increases and decreases over time based on the total computing power currently mining blocks and generating hashes.
That said, we recommend checking your mining profitability frequently.
The Bitcoin mining profitability results and mining rewards were calculated using the best BTC mining calculator with the following inputs.
A BTC mining difficulty of 15,556,093,717,703.00, a BTC mining hashrate of 110.00 TH/s consuming 3,250 watts of power at $0.05 per kWh, and a block reward of 6.25 BTC at $49,702.22 (BTC to USD).
Based on the mining hardware inputs provided, 0.00088905 Bitcoin can be mined per day with a Bitcoin mining hashrate of 110.00 TH/s, a block reward of 6.25 BTC, and a Bitcoin difficulty of 15,556,093,717,703.00.
After deducting mining power costs and mining fees, the final daily Bitcoin mining profit is $40.28 Bitcoin to USD.
As of Tuesday, August 24, 2021, it would take 1,124.8 days to mine 1 Bitcoin at the current Bitcoin difficulty level along with the mining hashrate and block reward: a Bitcoin mining hashrate of 110.00 TH/s consuming 3,250.00 watts of power at $0.05 per kWh, and a block reward of 6.25 BTC.
It is important to point out that the number of days calculated does not account for difficulty increases and decreases as well as block reward increases and decreases (halving).
Bitcoin Mining Profit Calculator
There are many factors that affect your mining profitability. Two of the main factors that influence your profitability are: The Bitcoin network hash rate is growing at a rate of 0.4527678% per day. This means if you buy 50 TH/s of mining hardware your total share of the network will go DOWN every day compared to the total network hash rate.
Our calculator assumes the 0.4527678% daily increase in network hash rate that has been the average daily increase over the past 6 months.
Without factoring in this growth, most Bitcoin mining calculators show results that appear MUCH, MUCH more profitable than reality.
Even though the network hash rate will cause your share of the network hash power to go down, the Bitcoin price can help make up some of these losses.
The Bitcoin price is rising at a slightly lesser 0.3403% per day over the past year. We suggest you enter a custom Bitcoin price into our calculator based on what you expect the average price to be over the next year.
The price has gone down for most of the past year, which is a factor that should be strongly considered in your calculations. Since our calculator only projects one year out, we assume the block reward to be 6.25. We also use the current Bitcoin price in our calculations, but you can change the Bitcoin price to anything you like to get better data. Mining can be an effective way to generate passive income. However, there are numerous factors that affect mining profitability, and oftentimes they are out of your control.
Some seem to believe they will be able to quit their nine-to-five job after investing in a few Bitcoin miners – unfortunately, it is not necessarily the case.
It is important to understand the constantly changing dynamics that play into mining profitability, especially before you invest your hard-earned money. Nevertheless, a proper passive income can be generated if you play your cards right. Let’s explore the factors that you need to consider before you buy mining hardware:
Mining or buying bitcoins? You can’t do either without a Bitcoin wallet.
Our guide on the best bitcoin wallets will help you pick one. Read it here! Once you find one you like, you can learn how to add your mining funds to your wallet.
The initial investment in efficient mining hardware is probably one of the things keeping you from pulling the trigger, and for good reason. Mining hardware is expensive!
In actuality, the high cost of dedicated mining hardware ASICs (Application Specific Integrated Circuits) is largely to blame for the centralization of Bitcoin mining in China.
You can also mine litecoin with Bitcoin mining machines, but it’s usually just best to buy litecoin from an exchange.
In case you were not aware, most mining operations are in China, primarily because of cheap electricity (more on that later.) Since ASICs are expensive, many average consumers do not have the capital to invest.
Large mining corporations operate mining farms with thousands of ASICs. The average Joe can’t even afford one ASIC, much fewer thousands of them.
_Instead of mining being spread out across the world, the validation process is controlled by fewer people than first anticipated upon Bitcoin’s inception._
ASICs impact on Bitcoin aside, it is important to determine your ROI timeline before investing. Some hardware might not pay itself off at all. The additional factors below are largely responsible for determining your ROI period.
You can use the calculator above to determine your projected earnings based on the ASIC you're using and your electricity cost.
Every time a block is validated, the person who contributed the necessary computational power is given a block reward in the form of new-minted BTC and transaction fees.
The bitcoins block time is roughly 10 minutes. Every 10 minutes or so, a block is verified, and a block reward is issued to the miner. When Bitcoin was first created, miners received 50 BTC for verifying a block. Every 210,000 blocks – roughly 4 years – the amount of BTC in the block reward halves.
50 BTC per block may seem high, but it is important to consider the price of Bitcoin at that time was much less than it is today. As the Bitcoin block reward continues to halve, the value of Bitcoin is predicted to increase. So far, that trend has remained true.
First, the amount of newly minted BTC (often referred to as coinbase, not to be confused with the Coinbase exchange) halved to 25 BTC, and the current coinbase reward is 12.5 BTC. Eventually, there will be a circulating supply of 21 million BTC and coinbase rewards will cease to exist.
If BTC is no longer minted, mining won’t be profitable anymore, right?
Bitcoin transaction fees are issued to miners as an incentive to continue validating the network. By the time 21 million BTC has been minted, transaction volume on the network will have increased significantly and the miner’s profitability will remain roughly the same.
Of course, block rewards have a direct impact on your mining profitability, as does the value of BTC – since the value of BTC is volatile, block rewards will vary. Additionally, successfully confirming a block is the only way you will generate any revenue whatsoever by mining.
On a simple level, hashrate is the way we measure how much computing power everyone around the world is contributing toward mining Bitcoin. Miners use their computer processing power to secure the network, record all the Bitcoin transactions, and get rewarded in bitcoin for their efforts.
The higher the hashrate of one individual Bitcoin mining machine, the more bitcoin that machine will mine. The higher the hashrate of the entire Bitcoin network, the more machines there are in total and the more difficult it is to mine Bitcoin.
At the end of the day, mining is a competitive market.
Another way of looking at it is that hashrate is a measure of how healthy the Bitcoin network is.
It’s good for Bitcoin if the overall hashrate is high because it makes the network more secure. Somebody who wanted to attack Bitcoin would need at least 51% of all the hashrate in the world and that gets expensive when there are millions of mining machines running.
It’s also healthy if those machines are being operated in different countries by different people because it means it would be very hard for the entire network to be shut down. Bitcoin is like a many-headed hydra, now it is unstoppable.
Before we get too deep into the Bitcoin Mining topic, please note that mining isn’t the fastest way to get bitcoin.
Cloud mining is Typically, we call this finding the next block. Like many things connected to Bitcoin, this is an analogy to help things be easier to understand. The deeper you go into the Bitcoin topic, the more you realize there is to learn.
Whichever machine guesses the target number first earns the mining reward, which is currently 6.25 BTC. They also earn the transaction fees that people spent sending bitcoin to each other.
Just like winning the lottery, the chances of picking the right hash are meager. However, modern bitcoin mining machines have a big advantage over a person playing the lottery. The machines can make an awful lot of guesses. Trillions per second. Each guess is a hash, and the amount of guesses the machine can make is its hashrate.
No. Other cryptocurrencies, like Litecoin, that use mining to support and secure their networks can be measured in hashrate. However, different coins have different mining algorithms, which means that the chance of a mining machine guessing the target, writing the block onto the blockchain, and getting the reward is different from one cryptocurrency to the next.
We can still compare the amount of hashrate between two different cryptocurrencies, and the Bitcoin network has a lot more computing power than all the other currencies put together. Therefore, it’s easy to argue that Bitcoin is the most stable and secure, and why it’s very unlikely that a new coin will take over its crown.
The algorithm that Satoshi Nakamoto implemented for Bitcoin is called SHA-256. So, when we talk about the hashrate of the Bitcoin network, or a single Bitcoin mining machine, then we are really talking about how many times the SHA-256 algorithm can be performed. The most common way to define that is how many hashes per second.
You’ll see it listed as H/s or more commonly TH/s, which is one trillion hashes per second!
When Satoshi gave the world Bitcoin back in 2009, it was easy enough to measure hashrate in hashes per second because the computing power on the Bitcoin network was still relatively low. You could mine Bitcoin on your home computer and it was quite possible and likely that you would occasionally earn the then 50 BTC block reward every so often.
Today the block reward is only 6.25 BTC and the hashrate is measured in trillions, quadrillions, and even quintillions of hashes per second.
It is surprisingly tricky to work out the exact hashrate of the Bitcoin network because the mining machines don’t need to identify themselves to contribute their computing power to the network. The machines are simply hashing away locally and then communicating to the network (usually via a pool when they have found the latest block.
It’s hard to accurately measure the hashrate of all machines in the network. Hashrate charts are reverse engineered by comparing block frequency and network difficulty. The oscillations exist because the difficulty is constant in two weeks, but block frequency varies greatly. At F2Pool, we find that the estimated Network Hashrate is best represented as a moving average.
The daily estimation of hashrate is calculated by comparing the number of blocks that miners discovered in the past twenty-four hours with the number of blocks (144) that we would expect would be discovered if the speed stayed constant at one block every ten minutes.
It’s a little bit more complicated than just dividing the number of blocks because it includes the concept of mining difficulty. Bitcoin is programmed to mine a block about every 10 minutes. It maintains this production rate by adjusting the “mining difficulty” in line with the overall hashrate of the network. In short, it becomes more difficult for miners to find the target. As hashrate increases, so does Bitcoin’s mining difficult.
The main point is that the answer that this formula produces is not entirely accurate and can lead to hashrate charts that look a little strange if they aren’t averaged out. The Tweet below is a good example of the confusion hashrate data can create when it is not presented as a moving average.
Look at this Bitcoin chart. Why is the BTC hash rate oscillating so much? The amplitude seems to have increased in recent months; does that imply hash rate centralization? Or are Bitcoin POW pools gaming the difficulty calculation?
The chart below shows Bitcoin Hashrate as a three-day moving average vs. the price of Bitcoin itself, without the wild oscillations.
To put it bluntly, the more hashrate you have, the more you’re going to earn from Bitcoin mining. That’s because you are increasing your chances of getting rewarded for discovering a block with every TH/s you add in terms of computing power.
In 2020, modern machines produced between 60 and 100 TH/s. The Whatsminer M20S produces 68 TH/s. Compared to the entire Bitcoin network, that one machine is a drop in the ocean. There are millions of machines in multiple countries hashing away, trying to discover the next block.
This means that over time, as seen in the following chart, the revenue for 1 TH/s has fallen dramatically.
In June 2020, 1 TH/s will earn less than 10 cents in USD per day. So, one M20S will earn around $6, and that’s before you have paid your electricity bill. Mining is a margins game, where every cent counts.
If you’ve been paying attention, you might be asking yourself one more question. If one M20S runs at 68 TH/s, and the entire Bitcoin network is above 100 EH/s, what on earth are the chances of one individual machine mining a block.
If you ran an M20S on its own, then probabilistically, you would earn a single block every 16 years. It would be a pretty good payday (around $60,000 at today’s prices) from a machine that costs about $1000, but it’s a long time to wait, and that’s where mining pools come in.
Another aspect of the mining business that affects revenue is taxes. Every miner needs to know the relevant tax laws for Bitcoin mining in his part of the world, so it is important to use crypto tax software when calculating profits. For instance, we have a great guide on how that software works to pay taxes on Coinbase buys.
As the hashrate on the Bitcoin network increases, the chances of earning a reward through solo mining decrease. To increase their chances of earning mining revenue, miners connect to a mining pool to pool their computing power and proportionately share the block rewards of any block mined by the pool based on the amount of hashrate they contributed.
A PPS+ pool, like F2Pool, takes the variance risk away from miners, as the pool will pay out mining revenue to miners regardless of whether the pool successfully mines a block. Usually, PPS+ pools payout once per day.
If the Bitcoin Network Hashrate is at 100 EH/s (100,000,000 TH/s), a WhatsMiner M20S ASIC miner with 68 TH/s earns around 0.001224 BTC per day. It’s guaranteed by the pool regardless of luck.
When Satoshi created Bitcoin and gave it to the world, he took the idea of hashrate and used it to ensure that Bitcoin would remain decentralized and secure. Miners compete to earn rewards, and the computer power they contribute to the network makes it very hard for a bad actor to mess around with people’s transactions.
To attack Bitcoin, you need at least 51% of all the hashrate in the world. Now that the miners produce 100 quintillion hashes per second, that are becoming a costly and unlikely scenario. In short, the more hashing power used to mine Bitcoins, the harder it is for a single person to get 51% of it.
Mining difficulty or just “difficulty” is a measure or a network-wide setting that indicates how much effort miners require to find proof of work.
In Bitcoin, a proof-of-work is just a piece of data - or more precisely a number - which falls below a predetermined difficulty target that is continually and automatically readjusted by the Bitcoin protocol.
For miners competing in the Bitcoin network, finding, or generating this number involves repeatedly hashing the block's header until the hashing algorithm spits out an output that falls below the aforementioned pre-set difficulty target.
Miners expend computational energy and compete to find the proof-of-work because finding the proof-of-work is the only way to validate blocks, and validating blocks is how miners in the Bitcoin network make their living.
The first miner to validate a block gets to create a unique transaction, called a coinbase transaction, whereby the miner rewards himself with a set amount of newly minted bitcoins.
The process of hashing is, in fact, quite simple but requires an enormous amount of computational energy.
Put, hashing transforms a string of characters (the input) into a usually shorter, fixed-length value or key (the output) representing the original string.
The trick with hashing is that, while running the same input through the same algorithm always gets us the same output, changing only the smallest bit of the input and running it through the same algorithm changes the output completely.
To find the proof-of-work, miners must repeatedly change the input (which is consisted of the block header - the part that stays the same - and a random number called a nonce - which is the variable that miners change to get a different output) and run it through the SHA256 cryptographic algorithm until they find a hash that meets the preset difficulty target.
Using sophisticated mining hardware called ASICs (Application-Specific Integrated Circuits), miners can make hundreds of thousands of these calculations per second.
It takes the entire network of miners roughly 10 minutes to find and validate a new block of transactions.
The moving or self-readjusting difficulty target is a crucial component of Bitcoin security for several reasons, but mainly because it ensures the network’s neutrality by preventing any single miner from taking full control over the protocol.
The ever-changing difficulty target ensures that the Bitcoin protocol runs smoothly and that a new block is validated and added to the Bitcoin blockchain roughly every 10 minutes on average. This 10-minute interval between blocks is better known as block time.
Difficulty matters for more than just protocol security. Maintaining a stable block time has substantial monetary implications. If miners start mining blocks faster, they’ll generate bitcoins faster, which translates into a higher inflation rate.
Maintaining a low, fixed, and the predictable inflation rate is essential for a scarce digital asset like Bitcoin.
To keep the block time fixed as more miners join and/or leave the network, the Bitcoin protocol must keep pace and continually readjust the mining difficulty accordingly.
The average block time of the Bitcoin network is evaluated every 2106 blocks (roughly every two weeks); if the block time is greater than 10 minutes, then the difficulty will be reduced, and if it’s less than 10 minutes, the difficulty level will be increased.
In other words, if the cumulative hash power of the network rises, the Bitcoin protocol will readjust and make it harder for miners to find the proof-of-work. And, conversely, if the cumulative hash power drops, the difficulty will drop to make it easier for miners to validate blocks and keep the interlude between each new block and the previous one fixed at ~10 minutes.
It’s important to note that not every cryptocurrency is designed with the same block time in mind. Ethereum, for example, aims for an average block time of 20 seconds, while Litecoin aims for a block time of 2.5 minutes.
You may be wondering: "How does the Bitcoin blockchain know if block times have been longer or shorter than ten minutes on average? Wouldn’t this require an oracle to keep track of block times?"
Good question. The way the blockchain "knows" how much time the average block has taken during this difficult period is by referencing timestamps left by the miners of each block. To some extent, there are protocol rules in place that prevent a miner from lying about the timestamp.
Difficulty directly impacts miner profitability. Difficulty adjustments make it easier or harder for active miners to find new blocks and earn bitcoins.
Greater difficulty means that miners need more hashing power to secure the same chance of winning a block reward. Since in today’s world, nearly all individual miners join mining pools, greater difficulty means that miners will earn fewer bitcoins per unit of hash power contributed to the mining pool or per unit of electricity consumed.
Usually, when the Bitcoin network experiences a drop in mining difficulty, the price of bitcoin was too low, and the most inefficient miners couldn’t cover their operating costs and had to stop mining.
If you are interested in mining, make sure to check out our mining profitability calculator before you get started.
When inefficient miners shut their mining rigs off, the efficient miners who survive get to experience greater profit margins — but only for a short time. In free markets with relatively low barriers to entry, high margins tend to attract competition.
In that way, the Bitcoin protocol acts as a self-stabilizing ecosystem through the moving difficulty target.
Another aspect of the mining business that affects profit is taxes. Every miner needs to know the relevant tax laws for Bitcoin mining in his part of the world, so it is important to use crypto tax software when calculating profits.
Yes, but getting to the maximum difficulty is practically impossible.
The maximum difficulty is a ridiculously huge number (about 2^224), which quite literally means that to mine a block with this difficulty would require all the energy in the universe.
Electricity cost is probably the factor that has the most impact on mining profitability.
After all, Bitcoins SHA-256 mining algorithm is classified as Proof-of-Work (POW) because work must be done to validate the network. The work is computational power – therefore, electricity is required to validate the network.
Always look at a miner’s hashrate/power consumption ratio. Ideally, you want an ASIC that has a high hashrate and low power consumption. Such an ASIC would be efficient and profitable because you’d hopefully validate a block that would be worth more than your electricity costs.
If you don’t successfully validate a block, you’ll end up spending money on electricity without anything to show for your investment. To maximize your profitability, purchase the most efficient ASIC and mine where electricity is cheap.
In the United States, the average electricity cost is around $0.12 per kilowatt-hour. In other countries, electricity costs will vary. Asia’s electricity is particularly cheap, which is why China is home to many mining operations.
Paying taxes is the one thing that many people forget about when they are trying to figure out if mining is profitable or not.
Like any business, miners must also pay taxes on the profits, making margins even tighter for the miner.
Make sure that when you calculate your mining profitability, you also consider the tax situation on mining in your country and use crypto tax software to help you out.
Bitcoin mining is very competitive. If you are looking to generate passive income by mining Bitcoin, it is possible, but you must play your cards right.
Now you have the tools to make a more informed decision. Mining is competitive yet rewarding. If you invest in the proper hardware and combine your hashing power with others, your odds of turning a profit will increase considerably.
Bitcoin (BTC) Mining Calculator is a simple calculator used to calculate profitability or several bitcoins generated using specific bitcoin mining hardware. To use the same, you will need the configuration of your mining hardware and the electricity price in the area you will set up the bitcoin mining rig.
This Bitcoin mining calculator will help you predict the amount of profit you will be making based on the various factors that influence the mining operation. It works on a simple principle. Takes the input value of your mining hardware, feeds it into the Bitcoin Mining Algorithm, does the calculation, and predicts the profit/revenue, or you can not of bitcoin generated and profitability of the same.
Basically, you first need to consider your miner's Hash Rate - the higher the hash rate, the faster it can mine for Bitcoins. Hash Rate is usually measured in GH/s (Giga Hashes per Second).
Next, you need to enter the amount of power (in terms of Watts) that your mining device consumes.
After that, the price of the power is considered - the price at which you get electricity. The lower the price of electricity, the more profitable your Bitcoin mining operation is.
Pool fees percentage is also considered in this - most Bitcoin mining pools charge a small fee. After deducting that percentage of the fees, you can get a better, clearer picture of your mining profitability.
Mining difficulty is also considered a factor. Ever since the Bitcoin network went live, mining difficulty has constantly been increasing - the higher the difficulty, the harder it is for miners to mine for Bitcoin.
Another crucial factor here is the block reward - basically, the number of Bitcoins released upon solving a block: this number keeps reducing by 50% every four years. The current block reward is 12.5 BTC per block, which will reduce to 6.25 BTC per block in May 2020.
Finally, the Bitcoin price is also considered, which has a major impact on Bitcoin mining profits. The higher the price of BTC, the more profitable your mining operation is. Also, you can see the Bitcoin Price Prediction calculation.
When you enter all these factors into the Bitcoin mining calculator, the profitability of the mining operation is determined. The mining calculator shows you your profits hourly, daily, weekly, monthly, and yearly.
Mining is much more than just something that you do to gain Bitcoins. It is a proper investment, and it requires a detailed thought process behind it. No investment is usually made without keeping the profitability in mind - and Bitcoin Mining Calculators help you determine the profitability of your mining operations.
Considering that everything is so dynamic in the world of cryptocurrency - one always needs to keep track of their progress - and how profitable their mining operations continue to be. Sometimes, these ‘dynamic changes’ can be internal - such as an increasing mining difficulty or a drop in the block reward. However, there can be some external changes, such as the cost of electricity or a change in the pool fees percentage.
Keeping all these factors in mind is essential, and any change in any of these factors would change the profitability of your mining operations. The most important factor, however, continues to be the price of Bitcoin. The higher the price of Bitcoin goes, the more profitable a mining operation becomes, and the lower it falls, the profits fall along with it.
Hence, a Bitcoin Mining Calculator helps you always check about how profitable your operation is, keeping all the other factors in consideration. You can pause or resume your mining operations based on profitability - to ensure that you are not making any losses while mining.
The biggest factor that determines your Bitcoin mining operation is the price of Bitcoin itself. Anyone who invests in Bitcoins must know about the price volatility. Bitcoin, which went from $950 to $19,500 in 2017 - has been on a major downtrend in 2018. However, the potential to bounce back is immense.
The price of Bitcoin can be the make-or-break factor for all mining operations. When the price rises, mining operations can provide extremely high returns. However, when the price declines, the profitability of the Bitcoin mining operation goes down.
To understand Bitcoin’s price volatility, one must understand some basic economic concepts: demand and supply. When the demand for Bitcoin rises, people begin to buy it in large numbers - and the more Bitcoin is purchased, the higher the price rises. This is because there are only a limited number of Bitcoins in circulation - the lesser Bitcoins remain in circulation, the higher the price. However, when people begin to sell their Bitcoins - and the Bitcoins in circulation rise, the currency's price falls because of abundance—the lesser the supply, the greater the price of the currency.
Moreover, there are several other reasons which can result in Bitcoin’s price fluctuations. Sometimes, government actions such as China banning cryptocurrency exchanges or Korea launching a probe in crypto exchanges in the nation result in price crashes. Other times, it might be an external malicious force such as a group of hackers who break into an exchange, stealing cryptocurrencies. These kinds of events lead to a fall in the price.
Whenever there’s a major fluctuation in the Bitcoin prices, miners need to check the impact of the change of prices on their profitability using a Bitcoin Mining Calculator. Our Bitcoin mining calculator automatically grabs the latest Bitcoin price to ensure that you are shown the latest results based on the current price of Bitcoin.
Several factors influence your Bitcoin mining profitability: while the most basic factor, as discussed above in detail - is the price of the Bitcoin itself. Several other factors need to be considered before you begin your mining operations. Let us look at three main factors which affect mining profitability.
Investment into the mining setup: One factor that many people tend to miss out on is their investment in the mining setup. Bitcoin mining is not a cheap affair, and it often requires thousands of dollars to set up a proper mining rig with multiple ASIC miners. It often takes miners months or even years to break even on that initial investment they put in, after which it is all profit. Everyone can use a Bitcoin mining calculator to check the amount of time it would take you to break even, given that conditions remain static.
Cost of Power: Bitcoin mining operations tend to consume a large amount of electricity. Hence, the cost of power has a major role to play here - the higher the cost of the power, the higher the cost of the mining operation. This is the reason several Bitcoin mining operators are choosing locations with cheap power for their mining operations.
Block Rewards: Considering that block rewards reduce by 50% every four years - your profits would significantly reduce when this happens in 2020. However, the logic behind this is that with every drop, the price of Bitcoins too would increase as they would become an even more scarce resource - hence neutralizing the reduction in quantity.
Conclusion: Before setting mining farm, it is advisable to use Bitcoin Mining Calculators to calculate the profitability of the same.
Bitcoin mining calculators are not just a one-time tool - they are constant support that Bitcoin miners need. With any change to any of the factors - the price of Bitcoin, the price of electricity, or the difficulty/rewards, miners need to know its impact on their mining process. Our Bitcoin mining calculator shows an exact breakdown of how each price influences the profits.
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**Highlights of OXBTC Cloud Mining**
Instead of buying any mining rigs, you can just start your mining journey online from the purchase of cloud mining smart contracts.2, Free from additional risks such as mining machine failure or poor performance, you can mine with lower maintenance costs yet enjoy stable investment yields.3, You are saved from the trouble of dealing with waste machines upon contract termination.
**Alerts for the Purchase of OXBTC Cloud Mining**1, Preference should be given to crypto platforms with a long operating history to avoid fraud and risks. With six years of experience in mining, OXBTC can secure you mining stability.2, Beware of the major differences between “actual revenues” and “theoretical revenues” in the rules of profit allocation.3, A huge advantage of these services is that it’s totally hands-off — no equipment to buy or manage, no space to find for the equipment, no equipment noise, no heat to deal with. Cloud mining service solves those issues for you.
If you are interested in the profitability of mining Bitcoin (BTC) on OXBTC, there is [OXBTC Mining Profit Calculator](https://www.oxbtc.com/support/profitCalculator) for you to simulate Bitcoin (BTC) miner profitability.