Mining bitcoin | is it worth it to mine Bitcoin?

It’s a simple question with a complex answer. There are many different factors that come into play to know if mining Bitcoin is worth it for you. Even with the increase in the price of bitcoin, installation costs and electricity costs can be greater than the revenue you could get from mining.

The main factors influencing the profitability of Bitcoin mining are:

• Mining difficulties
• Mining Rewards
• Hash rate
• Operational costs

The extraction difficulty determines the complexity of the algorithm that you must solve when creating a new transaction block. As more and more miners join the network, the difficulty increases, making Bitcoin more difficult to exploit.

Difficulties of mining and rewards

The extraction difficulty determines the complexity of the algorithm that you must solve when creating a new transaction block. As more and more miners join the network, the difficulty increases, making Bitcoin more difficult to exploit.

The reward for operating a block is currently 12.5 Bitcoin. This award is halved every 210,000 blocks, and the next “half cut” is expected in 2020. Ideally, the price of bitcoin will rise enough to offset the continuing decline in the mining reward, or miners will stop mining, which will lead to a decrease in difficulty.

You should also consider the conversion rate of Bitcoin into currency (Fiat) if you plan to cash at any time. With the volatility of Bitcoin’s price, this could affect your profitability.

The biggest unknown in calculating the profitability of your Bitcoin mining project is the amount of the annual profitability decline. Nobody knows how many miners will continue to join the network, so it’s almost impossible to calculate exactly how much your income will decrease each year. Indeed, more miners there is, less is profitable.

Bitcoin hashing rate

The hash rate is the speed at which your mining platform can solve the algorithm needed to extract new blocks. Although a mining platform with a high hashing rate may seem nice, it usually costs a lot more to buy and operate.

When choosing a mining facility, you should first determine how long you would like this station to work for you. If you plan to exploit Bitcoin for a short time, it may be advantageous to buy a cheaper miner. Even though the hash rate may be lower, you may be able to pay back the initial purchase cost more quickly.

Expenditure related to the purchase of mining equipment

There are some different costs that you need to consider when calculating your Bitcoin Mining Profitability.

Electricity costs vary depending on your electricity rate and the power consumption of your mining facility. Mining platforms are usually listed with their typical energy consumption, and you can find your electricity tariff on your electricity bills.

To effectively operate a Bitcon mining facility, you will need to join a Mining Pool and pay the associated fees. A mining pool or a mining pool is a group of miners who work together to exploit blocks at a higher rate. The reward of each block is then divided among the miners, which allows you to be paid more regularly. These fees vary between 0% and 5%.

You should also include the initial cost of purchasing a mining platform in calculating your potential profitability.

Profitability Calculators of Bitcoin Mining

Once you have determined some of your costs and options for your mining facility, you can use a calculator to determine if mining Bitcoin is worth it for you. 99Bitcoins and CryptoCompare both have excellent calculators to use.

If you find that you will not be profitable, do not worry. There are many other cryptocurrencies like Monero or Litecoin that you can find more profitable for you.