Bitcoin Mining What Is It And is It Profitable
Bitcoin Mining What Is It And is It Profitable
Bitcoin Mining – What is it and is it Profitable? A Beginner’s Guide
Bitcoin Mining What Is It And is It Profitable, The value of the BTC mining is reaching to a new height. It is soaring to the top- approx 1200 dollars in March 2017. Many people are tempting and willing to invest their money in the equipments that are required for Bitcoin mining. This is something like any crypto currency is released.
For people who are interested in it, this is the process that you have to attempt in order to complete a block containing recent BTC transactions that are recorded in block chain (a digital ledger). Block chain is public and anyone can access it. The data is stored across a network so this is not susceptible to exploitation by central failure or hackers. When a block is complete, you will get a reward in the form of a specified amount of BTC.
Earlier the Bitcoin mining was known as gold rush. It has grown from small to large cottage industry. Profitable extract Bitcoin is possible only with high powered and specialised machinery. Bitcoin mining is possible for anyone but if you are with underpowered set up you will find more money is spent on electricity. Bitcoin mining cannot be profitable at a small scale unless you have access to cheap or free electricity.
The question is “would BTC mining be profitable in 2017”. Well the answer depends on how much people are willing to spend over it. The answer will be different for different person as BTC mining profitability depends on lots of different factors. Mining profitability calculators are there to figure out BTC mining profitability for these lots of different factors. You can find out hardware cost, electricity cost and various other variables by using the calculator. You will get an estimate of your project profit.
Here are some Bitcoin mining terms that you should be aware of Conversion rate: it may be impossible for you to know BTC/USD exchange rate in 2017 so it will also difficult to predict Bitcoin mining profitability. Conversion rate will not bother you if you are in mining to accumulate BTC but it may affect if you plan to convert BTC into any other currency in future.
Hardware cost: nowadays people don’t use graphic card or standard CPU in order to begin BTC mining. There are some good equipments have launched in market to make the process faster and mining successful.
Profitability decline per year: This can be very elusive and important factor. It is hard to find out the rate of miners who join the network and you cannot predict how difficult it will be mine in 6 years/6 months/6 weeks from now.
Time Frame: when figuring out the BTC mining profitability, you would have to define a time frame. You will earn more BTC if more time you give to mine.
Pool Fees: You need to join mining pool in order to mine BTC. This is a group of miners that you join together
Mining Pool: group of miners join this pool in order to mine effectively. This is a platform that brings all pool members together. You have to pay some fee in order to perform operations. Once the pool manages to mine BTC, the benefits are further divided between the pool members. Benefits may also depend on how much work a miner does or I must say it depends on has rate of miner.
Power consumption: each miner may consume different amount of energy. You have to figure out the total power consumption of your miner before finding out the BTC profitability. You have to measure power consumption in Watts. This is a simple process to do it, you can search it online.
Electricity Rate – operating a BTC miner uses electricity and you can find out it on your electricity bill. You need to figure out this electricity rate before calculating BTC mining profitability.
Bitcoin Difficulty – Constant BTC amount is produce in every 10 minutes by BTC network. It may be difficult to mine BTC when more miners join it.
Hash Rate – It refers to the performance of your miner.
You can calculate all these factors by using mining calculator. These factors may include hardware cost, power cost, power, pool fees, BTC reward, hash rate and difficulty factor. You can mine BTC with cloud mining mean you need not to go for physical mining rig but rather rent computing power from a different company. You can get paid as per the consumption of power.
Cloud mining may seem a good option as you can get rid of all hassles of buying, cooling and storing expensive equipments. But these sites are not good for long run. These schemes may be scams and may not be profitable. Genesis mining can be the best option if you choose cloud mining.
The other option to make it more profitable is mining Altcoins rather than BTC. There are various altcoins available in market and you will find them really simple to mine. With lots of options, it may be hard to find out which altcoin can be the best to choose for. We can suggest you some good options including Peercoin, Dogecoin, Litecoin and much more.
You should understand which currency is profitable. There are some websites that can give you clear idea about the complete Altcoin breakdown. You should be well aware of the things like where to buy it and what are the opportunities to profit BTC by mining any other altcoin.
You can make a profit from BTC mining in the long run, if you invest your time and money in a right mining rig. You should stay away from it, if you don’t have sufficient time and money. Well, the future profitability of mining BTC can’t be predicted reliably as to the ever changing nature of BTC price and difficulty modifier. This is all about the BTC mining process and factors affect its profitability. You should consider all the above mentioned factors in order to calculate BTC mining profitability accurately. Hope you like the post.