Will 2017 be Profitable for Bitcoin Mining? Bitcoin mining during its early cheap asic bitcoin were generally called as a gold rush.
People with a strong interest in such things were first to stake their claim, namely cypherpunks, cryptographers, technically-minded libertarians and assorted hackers. But is there still gold in them thar hills? From a few of early enthusiasts, it is with certainty that Bitcoin mining has advanced into a cottage industry to a specialized industrial-level venture. The easy money was taken out long ago and the rest are hidden under the cryptographic equivalent of miles of hard rock. To be able to profitably excavate bitcoins nowadays, you need to have specialized, high-powered machinery. While it is technically possible for anyone to mine, those with underpowered setups will spend more money on electricity than have money generated through mining. A new block is created on average every ten minutes.
Proof of Work Hashing: this is the function miners perform in order to define a new block. PoW hashing ensures the proper function of the Bitcoin blockchain. There are no shortcuts in this process, which can only be solved with raw computational power. By correctly hashing the current block, miners prove their investment of work and are rewarded with a certain number of newly-created bitcoins. Block Reward: the number of newly-created bitcoins. This number was initially set to 50, halved to 25 in late-2012 and will halve again to 12. 21 million bitcoins are created.
Hashrate: a measure of a miner’s computational power. Difficulty: with hashrate shooting up over the years, it would seem blocks would be found by miners ever more rapidly. Bitcoin’s Difficulty measure is what prevents this from happening, ensuring blocks are found roughly every 10 minutes. When total hashrate rises, the Difficulty of POW hashing adjusts upwards – and the inverse also applies.
Watts per hashrate per second. Electricity is the major on-going cost of Bitcoin mining. The price paid per Watt will greatly influence profitability. By banding together with other miners in a so-called pool, your combined odds of solving a block rise proportional to the pool’s total hashrate. Having these terms in mind, it’s viable to calculate the current profitability of Bitcoin mining for your circumstances. Bear in mind that the future profitability of mining cannot be reliably predicted.