Determine how much profit you can make with your Bitcoin miner using CoinSmart’s easy and accurate Bitcoin mining calculator.
Determine how much profit you can make with your Bitcoin miner using CoinSmart’s easy and accurate Bitcoin mining calculator
Notes: Some values (e.g., the exchange rate) are updated automatically with the latest network stats. However, you can adjust any value manually to simulate possible scenarios.
Miners help to secure the Bitcoin network by updating Bitcoin’s ledger, also known as the blockchain. The higher the number of miners you have, the more decentralized and secure the network is. To compensate and encourage miners to provide mining services, an incentive system was created. This system provides a fixed amount of bitcoins to a miner when they min a block, also known as a block reward. When looking at mining profitability, there are numerous factors to be considered:
This upfront cost is usually the largest expense for any new mining operation. The quality and capability of mining equipment varies greatly, as does the cost. While there are many options for mining hardware, there are three main manufacturers on the market today.
Power Consumption2000 ~ 2145W
Hash Rate27th/s ~ 33th/s
Efficiency0.175 J/ Gh/s
Hash Rate14 th/s
Efficiency0.094 J/ Gh/s
Hash Rate15 th/s
Efficiency0.11 J/ Gh/s
If you are new to mining, it can be challenging to determine what hardware, or rig, to choose. One of the main considerations is the hash rate, which is measured in Terra Hash (Th/s). The higher the hash rate, the more powerful the mining rig. Hardware is powered by electricity and also generates a high level of heat. For these reasons, your hardware costs should also include considerations for power supplies and cooling equipment.
Hash power is not the only measure of quality when looking at hardware. You also want to consider the efficiency of bitcoins yielded relative to the amount of electricity consumed. The lower the watts per gigahash (W/Gh), the more efficient the mining rig is.
Electricity costs can quickly change the profitability of mining operation. Places like China and Venezuela are known for their prevalent and profitable mining operations due to the cheap costs of electricity. In the U.S., places like Washington State offer the same advantages due to their provision of hydroelectricity.
One easy to overlook factor is that these high levels of required electricity produces a considerable amount of heat that must be controlled. In cooler areas, miners can actually use the heat generated by the mining operation to help heat their homes, which can offset the cost of traditional heating, Cooler areas also can provide a cost saving by avoiding the need for cooling equipment. Both of these considerations should be factored in to a miner’s profitability calculation.
The Bitcoin mining difficulty is structured to allow a block to be mined, on average, every 10 minutes. If more hash power aka stronger miners are working on the blockchain, the difficulty can be higher. These are external factors and difficult to predict, so it does not directly go into the profitability calculation but is something to be aware of. It is important to stay current in your awareness of new mining technologies to help understand the impact it may have on the difficulty and has power of the network.
Bitcoin’s price is impossible to predict and often highly volatile. You should be aware that your profitability may be affected by fluctuations in the Bitcoin market.
While many parts of cryptocurrency and mining may be hard to predict, Bitcoin block reward is predictable and easy to understand. Every four years, the Bitcoin block reward is cut in half. For instance, in 2012 the reward was 25 bitcoins per block. In 2020, the reward will be down to 6.25 bitcoins per block. While it may seem unfair that miners’ rewards are progressively cut in half, this is offset by the increase in demand which leads to Bitcoin’s price rising.