As a basis for its security, bitcoin (BTC) uses a Proof-of-Work (PoW) concept algorithm. This means that it, like many other cryptocurrencies, has a network of cryptocurrency miners who find new blocks and add to them still unapproved transactions.
The process of finding one block, which takes about 10 minutes, also leads to the release of a fixed number of new bitcoins. At current time, this is 6.25 BTC per block; it is reduced by half, approximately every four years (with the production of 210,000 blocks), which reduces the number of bitcoins released with each extra block. The released BTC is provided as an incentive for the miner (or a group of miners, if the work is carried out in the mining pool), which has obtained the block.
It is simple
The profitability of mining depends on many parameters. The only one that you can influence is the power of your computer. Everything else is market variables that are constantly changing and do not depend on you in any way.
Also read : How To Mine Bitcoin On Mac
Even though it takes 10 minutes to find each block and the one who mined successfully is given a reward of 12.5 BTC, it is important to understand that in the process of finding blocks, the whole net of bitcoin competes on the way.
This means that only one miner from the entire mining network can successfully find the block. And since thousands of bitcoin miners are working here, the chances of reaching a block alone is low.
For this reason, overwhelming majority of bitcoin miners work together as part of the mining pool, combining their hashrate to have more chances in finding block. Regardless of which miner from the pool finds the block, the rewards are distributed equally across the entire pool. Therefore, the miner, which provides 1% of the total hashrate of the pool, will also receive 1% of the bounties paid for the block.
At present, F2Pool is the largest mining pool. It controls 20% of hashrate, in another words collective computational energy. A separate miner, which provides 1% of the pool hashrate (~ 267 PH / s), will earn approximately 1.79 BTC per day. This means that at current levels of difficulty, the miner will need about 149.2 h / s hashrate to extract on average 1 BTC per day.
The answer to the question of how much to mine 1 bitcoin can be submitted in several interpretations:
Also read : How Long Does a Bitcoin Transaction Take
At the beginning of the history of mining cryptocurrency, miners used CPU. With the help of such equipment, miners could easily mine bitcoins, the rate of which in 2013 was $ 15 per 1 BTC. Over time, the popularity and rate of cryptocurrency began to grow, and it became more difficult to select keys and break ciphers using a conventional processor. The cost of consumed electricity began to exceed the miner’s profit.
A video card or GPU was 100 times faster than a regular CPU and performed many identical tasks, and in the process of mining bitcoins and other cryptocurrencies, hardware speed and multitasking play an important role.
Over time, many miners abandoned their processors and switched to video cards. The time for mining 1 bitcoin on the GPU was 2 weeks, especially since until 2014 the complexity of the tasks and the rate of the cryptocurrency were low. Some miners in order to increase performance were creating a farm, that is, connecting several video cards to one computer.
Recently, it has become difficult to mine on one computer, even with a powerful video card, so many miners began to unite in mining pools.
ASICs are integrated circuits specially designed to provide mining power at high speed. ASIC is a collection of microchips equipped with powerful fans, which allows mining on it without any problems, but it is recommended to install it in a separate room. The main advantages of this equipment are low power consumption, which reduces costs and leads to an increase in the miner’s income, as well as a significant increase in productivity.
If we consider the most popular ASIC models, then it is possible to earn 1 bitcoin worth about 8 thousand US dollars on such equipment in a period of 33 to 48 months. This time depends both on the power of the equipment and the complexity of the tasks, and on the change in the rate of the cryptocurrency.
Every year this process becomes more complicated and costly. The mining of cryptocurrency and the time spent on it is influenced by such indicators as the exchange rate, the complexity of mining tasks, and others.