_ Here's how it works: Anybody can ask a question Anybody can answer The best answers are voted up and rise to the top up vote 7 down vote favorite 2 This question already has an answer here: How much Bitcoin will I mine right now with hardware X?What is the basic equation for computing profit from mining given gigahash per second of the miner, timeframe, miner costs, and current bitcoin economy stats like mining difficulty and dollars per coin?And what are some URLs that have these stats always up to date?I'm looking for the equation, not an online calculator.mining-profitability marked as duplicate by Murch This question has been asked before and already has an answer.If those answers do not fully address your question, please ask a new question.up vote 9 down vote The average amount of time (in seconds) to find a single share is: difficulty * 2^32 / hashrate In that equation, difficulty is the difficulty of a share and hashrate is your hash rate in hashes per second.

A day has 86,400 seconds in it, so the number of shares you'll find in 24 hours is: 86,400 / (difficulty * 2^32 / hashrate) A slightly more complex formula, using PHP: $hashTime = ((float) $difficulty) * (pow(2.0, 32) / ($hashRate * 1000.0)) ; $powerCostPerYear = 365.25 * 24.0 * $powerConsumption / 1000.0 * $electricityRate; $blocksPerYear = (365.25 * 24.0 * 3600.0) / $hashTime ; $coinsPerYear = $blockCoins * $blocksPerYear; $revenuePerYear = $coinsPerYear * $conversionRate; $profitPerYear = $revenuePerYear - $powerCostPerYear; $netProfit1st = $revenuePerYear - $costHardware - $powerCostPerYear; if ($profitPerYear <= 0) $breakEvenTime = -1; else $breakEvenTime = $costHardware / ($profitPerYear / (365.25 * 24.0 * 3600.0)); up vote 2 down vote You effectively need a spreadsheet to calculate the profit because the difficulty factor changes every 2016 blocks, or about every two weeks.bitcoin vending

The difficulty factor is currently compounding itself somewhere around 35% to 55% per month.If you don't include this nonlinear effect you are kidding yourself.The compounding difficulty factor is the dominant term that will make or break ROI.Browse other questions tagged mining-profitability or ask your own question.Are you serious about mining cryptocurrencies?reddit bitcoin mining poolIf so, you need to know how to make the best use of your money and equipment.bitcoin mixing service deutschIn this guide, we’ll show you how to mine your digital treasure in the most profitable way.bitcoin kaufen per kreditkarteObviously, the big money is going into costly bitcoin ASICs.litecoin reward system

If you are already in that position, you probably know how the process works and are intending to mine bitcoin.However, those of you on a more moderate budget are probably looking at building a GPU miner for scrypt currencies, or a buying a small ASIC machine for bitcoin or other SHA-256 currencies.In that case, you have come to the right place.ethereum mining difficultyThe process of mining digital currencies involves solving complex cryptographic puzzles.dogecoin shopBy doing this, miners are providing ’proof of work’ that is rewarded with digital currency.bitcoin kreditBroadly speaking, there are two proof-of-work hashing algorithms in use today: SHA-256 and scrypt.litecoin with asic miner

Note that there are some lesser-used alternatives, which we will not be looking at in this guide (for example, Primecoin).Depending on your budget and the type of currency you intend to mine, there are two ways to go when setting up your mining system: Mining requires electricity – lots of electricity.If you are building a DIY rig, you’ll be getting an ATX power supply unit (PSU) anyway, so it’s worth investing in the most efficient supply you can get.Consider the following two cases, for example: A PSU that is guaranteed to supply 860W and is 93% efficient would actually draw 925W (860W/0.93).By contrast, a 750W power supply that is only 80% efficient would actually draw 937.5 W (750/0.8) – thus using more power, but supplying less.When building a mining rig, you will need to take account of the power requirements of all the components you are using ­– especially all those graphics cards.Plus it’s a good idea to provide some excess capacity to deal with unexpected events and provide the potential to overclock your system.

ASICs, on the other hand, can do far more calculations with far less power because they are highly specialised devices.And since they ship with an appropriate power adapter, you won’t have to worry about doing all the maths to find one that is up to the task.The mining efficiency of different systems can be compared by taking the ratio of the number of hashes it can perform in a second, divided by the power it consumes: Hashing speed / power consumption = mining efficiency After the initial expense of your rig, the essential thing you need to know to calculate your ongoing profitability is the cost of your electricity.Check with your provider, or take a look at your last bill.If the power charges add up to more then you earn, it obviously isn’t a good business model.Rather than go it alone, it usually makes more sense to join a pool, where you combine resources with other miners.By joining a pool, you earn a share of the coins mined by all members of the pool and stand a greater chance of solving a block.

Miners earn a share of the rewards if the difficulty level of the blocks they solve is greater than the level set by the pool operator.That level is always somewhere between 1 and the difficulty level of the currency.Inevitably, the difficulty level of all currencies increase with time – a fact that will reduce the chances of your equipment earning coins or mining shares.As a result, it is important to start with the best equipment you can afford, in order to mine profitably over the longest period of time.The volatility of the currency being mined also affects your long-term profitability.If the price suddenly drops, you will be faced with the choice of either selling at a low price or hanging onto your coins until their value increases.In the former case, you would have to keep mining for longer to recoup your expenditure on equipment and electricity.Whichever way you mine, it’s a computationally intensive operation that creates lots of excess heat.Mining efficiency decreases as temperature increases, so make sure your rig has adequate ventilation and cooling.

As mentioned above, this is why some mining rig builders  use beer crates rather than PC cases – to maximise airflow around their components.Even a standalone desktop fan can help to keep your kit cool.When building a DIY mining rig, it doesn't make sense to save money by buying a cheap PSU.Any instability in the power supply could hit performance, or even cause a system crash that will lead to downtime, so do invest in a high-quality unit.If your hardware isn’t mining, you are losing money.Here are some ways to minimise downtime: There are costs involved with mining, of course, like the rig and the ongoing electricity costs for starters.However, some extras are less obvious: For assistance with some of the calculations miners need to make, there are several websites that provide profitability calculators.You can input parameters such as equipment cost, hash rate, power consumption, and the current bitcoin price, to see how long it will take to pay back your investment.As a test, we entered the specifications of two mining systems into the calculators below.