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Another evolution came after on with FPGA mining. FPGA is a piece of hardware that can be connected to a computer in order to run a pair of calculations. They're only like GPUs but 3100 times quicker. The downside is that theyre more difficult to configure, which explains why they werent as commonly used in mining since GPUs. .

Finally, around 2013, a new breed of miner was introducedthe 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 the machine. .

Today, ASIC miners are the current mining standard. Some early ASIC miners even emerged in the kind 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 bit. 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 if you buy the best possible miner out there, youre still in a massive disadvantage when compared with professional Bitcoin mining farms.

Thats why mining pools came into existence. The idea is simple: miners team together to form a pool (i.e., combine their mining capability to compete more efficiently ). Once the pool manages to win the competition, the reward is spread out between the pool members depending on how much mining energy each of them contributed.

Now there are over a dozen big pools which compete for the chance to mine Bitcoin and update the ledger.

When calculating Bitcoin mining elevation, there are a lot of things that you need to take into account such as:

Hash rate: A Hash is your mathematical difficulty the miners computer needs to fix. The hash rate refers to a miners performance (i.e., how many guesses your computer can make per second). Hash rate can be quantified in MH/s (mega hash per 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 a miner finds the solution. This number started at 50 bitcoins back in 2009, and its halved every 210,000 blocks (about four years). The current number of bitcoins awarded per cube is 12.5. The last block-halving happened in July 2016, and the next one will probably be in 2020. .

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

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

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

Pool fees: When youre mining through a mining pool (you should), then the swimming pool will take a certain percentage of your earnings to rendering 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 be profitable. If you're planning to convert your mined bitcoins to any other currency in the future, this variable will have a significant influence on profitability.

Difficulty increase annually: This is probably the most important and elusive variable of all of them. The concept is that since no one can actually predict the rate of miners joining the network, neither can anyone predict just how hard it will be to mine in six weeks, six months, or even six years from now.

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

Once you have all of 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 check this every month. In case you cant get a favorable result on the calculator, it probably means you dont have the ideal conditions for mining to become rewarding. .