April 5, 2019, | AtoZ Markets - The word bitcoin has been around a lot lately, and you have been wondering about it. You have also head about bitcoin mining. Satoshi Nakamoto invented bitcoin as a P2P electronic cash system. The early days of bitcoin were exploited by the technically informed often harvesting huge profits. Mining bitcoins was easier then and could be done by a single individual using AISC hardware and even computers. Now the industry has exploded by few individuals to a high-level venture and mining bitcoins requires heavy machinery now.
Is Bitcoin mining profitable or worth it in 2019?
Following is a guide to bitcoin and bitcoin mining in 2019 and the very important question, is bitcoin mining still profitable or worth it in 2019?
Block: A group of Bitcoin transactions. They are chosen from the mempool and recorded by a miner into the ever-growing record of blocks which is known as the blockchain. This is the number of newly created bitcoins or satoshis awarded to the miner that creates a block. Initially, this was set to 50 but it was reduced to 25 in late 2012. Later, in mind-2016 block size reduced to 12.5 and is expected to reduce to half again around mid-2020. Accomplishing the block rewards is the only legit way to create new bitcoins.
Difficulty: Hashrate has been rising up over the years and this could have helped bitcoin miners to find blocks more rapidly. However, bitcoin’s difficulty prevents this from happening. It ensures that blocks are found every 10 minutes. When the total hash rate of the network increases, the difficulty of POW adjusts upwards.
Hash: To mine bitcoins, miners must solve a cryptographic puzzle. This needs computational power and miners are rewarded with freshly-mined bitcoins.
Hashrate: This is a measure of computational power. With an increase in hashrate, more and more bitcoins can be mined, but the difficulty is set such that a block is found roughly every 10 min.
Bitcoin mining calculator
For answering the question: Is Bitcoin mining profitable in 2019? This will explain to you how much bitcoin mining cost. You can use a CoinWarz Bitcoin mining calculator to make this part easier for you. Here are the details to calculate how profitable is bitcoin mining. Power, power cost and hardware cost will vary according to your location.
- Hash Rate: 23000
- Power (Watts): 1541
- Power Cost ($kWh). 0.10
- Pool Fees %: 0 (assume)
- Bitcoin Difficulty: 6379265451411.05000000
- Block Reward: 12.5
- Bitcoin to Dollar (USD): 4999
- Hardware Cost: 1,500
In this example, we are using the default power cost of 10c. This is a likely rate for an industrial area or one in which the electricity is subsidized.
Whenever a big mining pool comes online, the Bitcoin hashrate rises. Due to this, big miners may find their profit margins under threat. In 2019, home miners have no chance to compete in this challenging environment. You might find new and more efficient bitcoin mining hardware at any time after purchasing a machine that you thought was the best bitcoin mining hardware just a few months ago.
Bitcoin mining is a monotonous activity that requires time and resources. In the past, this has been an easy job to do for individual miners and has been a great source to earn free bitcoins. However, over time, this has changed, and the process has become more challenging and less profitable.
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