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Another evolution came later on with FPGA mining. FPGA is a piece of hardware that can be connected to a computer in order to run a set of calculations. They are only like GPUs but 3100 times quicker. The downside is that theyre more difficult to configure, and this explains the reason why they werent as commonly used in mining since GPUs. .

Finally, around 2013, a new breed of miner was introduced: the ASIC miner. ASIC stands for application specific integrated circuit, and these were bits of hardware manufactured solely for the purpose of mining Bitcoin. Unlike GPUs, CPUs, and FPGAs, they couldnt be used to perform anything else. Their function was hardcoded into this machine. .

Now, ASIC miners are the current mining standard. Some early ASIC miners even emerged in the form of a USB, but they became obsolete fairly quickly. Even though they began in 2013, the technology quickly evolved, and new, stronger miners were coming out every six months.

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After about three decades of this mad technological race, we finally reached a technological obstacle, and things started to cool down a little. Since 2016, the pace at which new miners are published has slowed considerably.

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Assuming youre just entering the Bitcoin mining game, youre up against some heavy competition. Even in the event that you purchase the finest potential miner on the market, youre still in a massive disadvantage when compared with professional Bitcoin mining farms.

Thats why mining pools came into existence. The notion is straightforward: miners team together to form a pool (i.e., combine their mining capability to compete more effectively). Once the pool manages to win the competition, the payoff is distributed between the pool depending on how much mining power each of them contributed.

Now there are more than a dozen big pools that compete for the chance to mine Bitcoin and update the ledger.

When calculating Bitcoin mining elevation, there are a lot of things you need to take into account for example:

Hash speed: A Hash is your mathematical problem the miners pc needs to fix. The hash rate refers to a miners performance (i.e., just how many guesses your computer can make per second). Hash rate can be measured in MH/s (mega hash each second), GH/s (giga hash per second), TH/s (terra hash per second), and even PH/s (peta hash per second). .

Bitcoin reward per cube: The number of Bitcoins generated when index a miner finds out the solution. This number started at 50 bitcoins back in 2009, and its halved every 210,000 cubes (approximately four years). The current number of bitcoins awarded per cube is 12.5. The last block-halving occurred in July 2016, and the next one will probably be in 2020. .

Mining difficulty: A number that represents how difficult it's to mine bitcoins in any given moment considering the amount of mining electricity currently active in the system.

Electricity cost: How many dollars are you currently paying per kilowatt Youll need to find out your energy rate in order to calculate profitability. This can usually be found on your monthly electricity bill. The reason this is important is that miners consume power, whether for powering up the miner or for cooling down (those machines can get very hot). .

Power consumption: Each miner consumes a different amount of energy. Youll need to find out the specific power consumption of your miner before calculating adulthood. This can be found easily with a quick search online or via this list. Power consumption is measured in watts.

Pool prices: If youre mining through a mining pool (you need to ), then the swimming pool will take a certain percentage of your earnings for rendering her response their service. Generally, this could be somewhere around 2 percent.

Bitcoins price: Since no one knows what Bitcoins price will be in the future, it's challenging to predict whether Bitcoin mining will likely be profitable. If you're planning to convert your mined bitcoins to any other currency in the long run, this variable will have a significant influence on profitability.

Difficulty increase per year: This is probably the most important and elusive factor of all of them. The idea is that since no one can actually predict the speed of miners joining the network, neither can anyone predict how hard it's going to be to mine in six weeks, six months, or six years from now.

The last two factors are the reason no one will ever be able to give a complete answer to the question is Bitcoin mining rewarding

Once you've got each these factors at hand you can insert them into a Bitcoin mining calculator (as can be seen below) and find an estimate of how many Bitcoins you will earn each month. If you cant get a favorable effect on the calculator, it likely means you dont have the ideal conditions for mining to become rewarding. .