Will I earn money by mining?- An answer to all newcomers (self.Bitcoin)submitted by [M]When people start their adventure with Bitcoin, they often go through a small gold fever with the concept of mining (I would know, that's how I started ;) ).Here is a small guide to answer your eternal question "will I make money with it?": First of all, lets talk about hardware (click on the link for a long and useful list).You won't make money mining bitcoins unless you either have a really high-end GPU from ATI, an FPGA or an ASIC.That's the short answer.Having a decent CPU can be used for Litecoin mining, which can be a small income in itself, but we are here to talk about Bitcoin.To see whether you will earn any money, you need to input a few pieces of data into a special calculator: cost of your hardware (cost of buying an ASIC, GPUs, motherboards, power supplies, etc.)how fast can it hash (mega hashes per second).This you can get from your hardware list how much power does it consume (again, hardware list) your cost of electricity (check with your power company) And then there are two magical variables that will either make it all work out, or be doomed for failure: * difficulty - it is automatically filled in by the calculator, but for long-term mining (more than a few weeks), you want to be a pessimist.

Multiply the value by 10 for predictions over a few months or 100 for a year or two (it will rise steeply soon) * bitcoin price - also filled by the calculator - it might go up or down in the future, affecting your bottom line.It will probably increase in the long run, but lets be pessimistic and lower that to $10-$20 to make sure we are earning money no matter what Having all your hard data and your guesses on the last two variables, you put it all into the mining calculator and see what you get.You will get your earnings in BTC and dollars, as well as summary of your costs and when you will brake even, and what will your net income be over your investment period.Most likely you won't be earning money with Bitcoin mining, and that's okay - mining has become a very specialised process.If you want to invest money into new ASICs, you might be able to turn a tidy profit.TLDR: Use this to check everything.ASICs may earn you money, GPUs won't anymore.π Rendered by PID 12038 on app-404 at 2017-06-24 10:58:53.053530+00:00 running 3522178 country code: SG.

Before we start, if you’re new to Bitcoin mining and don’t know what it is watch this short and simple explanation: The short answer would be “It depends on how much you’re willing to spend”.Each person asking himself this will get a slightly different answer since Bitcoin Mining profitability depends on many different factors.In order to find out Bitcoin mining profitability for different factors “mining profitability calculators” were invented.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.Before I give you a short example of how this is calculated let’s make sure you are familiar with the different variables: Hash Rate – 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.Today Bitcoin miners (those super powerful computers talked about in the video) come with different Hash Rates.Miners’ performance is measured in MH/s (Mega hash per second), GH/s (Giga hash zper second), TH/s (Terra hash per second) and even PH/s (Peta hash per second).bitcoin france interBitcoins per Block – Each time a mathematical problem is solved, a constant amount of Bitcoins are created.kurs bitcoin 2012The number of Bitcoins generated per block starts at 50 and is halved every 210,000 blocks (about four years).bitcoin hash 256The current number of Bitcoins awarded per block is 25.bitcoin exchange ukashHowever soon enough the block halving will occur and the reward will be downgraded to only 12.5 Bitcoins.litecoin growth

Bitcoin Difficulty – 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.bitcoin etf yahooElectricity Rate – 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.Power consumption – 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 is Watts.Pool fees – 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.Once the pool manages to mine Bitcoins the profits are divided between the pool members depending on how much work each miner has done (i.e.their miner’s hash rate).Time Frame – 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.Profitability decline per year – This is probably the most important and illusive 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.This is one of the two reasons  no one will ever be able to answer you once and for all “is Bitcoin mining profitable ?”.The second reason is the conversion rate.

In the case below, you can inset an annual profitability decline factor that will help you estimate the growing difficulty.Conversion rate – Since no one knows what the BTC/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.In order to calculate all of these parameter and get an answer to our question we will use a mining profitability calculator.here’s a simple mining calculator from 99Bitcoins: KH/s MH/s GH/s TH/s PH/s However, now let’s take a look at a more complex example were we include more factors: Today one of the most advanced miners out there is the Antminer S9.It’s what is known as an ASIC mining rig.It has a mining rate of 14 TH/s.If we use the simple Bitcoin mining calculator (shown above) you will see that at today’s difficultly you will earn around 1 Bitcoin a month.

But of course this doesn’t take into account the hardware cost, electricity cost, pool fees, etc. Let’s try to calculate all of these together.This data was taken from an advanced Bitcoin mining calculator using the following stats: 2% mining pool fees, 25 Bitcoins as a block reward, 14 TH/s hash rate, 1375W power consumption.So after 12 months we should be making around $6,000.However we haven’t deducted the hardware cost yet, so it’s more like $ 3,400.Also, pretty soon the block reward goes down to 12.5 so we’ll actually only be breaking even.Of course this result can change depending on your own electricity cost, the change in mining difficulty and most importantly the change in the price of Bitcoin.So you’re probably not going to get rich by mining Bitcoins at home unless you buy some heavy duty equipment and have very low electricity costs.Here’s a list of the most efficient Bitcoin mining hardware out there today.There’s not a lot of variety to pick from since home mining is a dying art.

88%Read review95%Read review81%Read review83%Read review79%Read review76%Read review70%Read review So even though home mining is an expensive business there are still other option that may be relevant for you to get into the mining game at a lower cost.There a new concept called “cloud mining“.This means that you do not buy a physical mining rig but rather rent computing power from a different company and get paid according to how much power you own.At first this sounds like a really good idea, since you don’t have all of the hassle of buying expensive equipment, storing it, cooling it, etc. However, when you do the math it seems that non of these cloud mining sites are profitable in the long run.Those that do seems profitable are usually scams that don’t even own any mining equipment, they are just elaborate Ponzi schemes.If you do want to take a look at cloud mining I suggest using Genesis Mining – the only cloud mining company that has been around long enough to prove it’s not a scam.

But make sure to do the month before putting your money into any of these plans.One more option you can consider is mining Altcoins instead of Bitcions.Today there are hundreds of Altcoins available on the market and some of them are still real easy to mine.The problem is that because there are so many Altcoins it’s hard to tell which ones are worth investing your time in.Some good examples for Altcoins are Litecoin, Dogecoin and Peercoin.In order to understand which Altcoins are profitable you can find website indexes such as CoinChoose that give you a complete Altcoin breakdown.On CoinChoose you can see the difficulty for each Altocoin, where can you exchange them and what are the chances to profit Bitcoins by mining each specific Altcoin.My guess is that in the long run you could make a profit from Bitcoin mining but only if you invest a considerable amount of money in a good mining rig (e.g.I’d currently stay away from Altcoins but that’s my own personal opinion.If you don’t have the time or the money – stay away from mining and just invest in buying Bitcoins for the long run.