Before discussing about profit question, we need to understand what is. If you ever read our former post, and the Technology Behind It, you may have a obscure impression of what is. Let’s get a thorough understanding.
Unlike the traditional gold- or coal- which usually involves explosives and drilling, is to get by computer. Generally, there are two sources where a miner can obtain : and transaction fees. (The “” is not the noticeable exchange.) The total reward a miner can get is the sum of and all the transactions fees from all transactions included in the block.
Total reward = (block reward) + all transaction fees
is the new generated by the network system. As we know, one or few transactions will be batched together to form a block. The first transaction in a block is called transaction (also known as generation transaction), which is created by miners. Due to PoW system, is designed to encourage miners to verify the validity of transactions, confirm and collect transactions into the , ensuring the normal running of the whole network.
reward is calculated based on the block height. It starts with 50 Bitcoins per block and is reduced by half every 210,000 blocks. As stated in whitepaper, the system will adjust difficulty to ensure about 10 minutes a block. That’s to say, halving event occurs every 2100000 minutes (approximately 4 years) a time. The first block of a is regarded as genesis block, whose block height is 0. Currently, the block reward is 12.5 per block. It will be changed into 6.25 Bitcoins per block in the next halving in around 2020.
Generally a block doesn’t require miners to include a non- transaction. Therefore, transaction fees are included in a transaction to reward miners for collecting additional transactions into a block. Since the space for transaction in a block is limited to about 1 MB in network, the more transaction fees you pay, the more quickly your transaction will get processed. What we should know is that the transaction fees you pay only influence how long the transaction will get confirmed. Considering there are many transactions in a block, total transaction fees equals to the minus of the total amount sender input and the total amount output. At present, transaction fees for a block sum up to 4–5 .
Total transaction fees = Total input — Total output
As we mentioned before, is about solving the calculating problem to get the rights to collect the transaction into the block first. The massive calculation is accomplished by computer. The increasing difficulty makes it impossible to make profits through with a personal computer (CPU). Computer with ASICs () chips is specially for now. This kind of machine is so-called machine (rig) or generator.
Here are some related terms:
Hash Rate: It’s the speed of executing complex mathematical calculating when rig tries to collect transaction into block. It’s a measuring unit of processing power of network. The faster it calculates, the more blocks it can collect, which means more block reward. Measuring unit:
KH / s ( 10 ^ 3 calculations per second)
MH / s (10 ^ 6 calculations per second)
GH / s (10 ^ 9 calculations per second)
TH / s (10 ^ 12 calculations per second, this is a frequently used unit in current )
PH/s (10 ^ 15 calculations per second)
Miner: it’s rig which is running network protocol and special program. It gains reward by . Generally, it refers to people who use rigs to as well.
Farm/Facility: It’s a room or warehouse where those rigs collectively located. As the difficulty rises, it’s hard to make profit through one machine. So, many rigs are put together and placed in places with low electricity cost. The main cost of a farm is rigs and electricity fees.
Pool: It’s a pool where miners share their hash rate (processing power) over a network and get their share of reword based on their contribution to finding a block.
Difficulty(or Target): It’s the number the whole network share to keep every 10 minutes or so a block. Generating every 2016 blocks takes about two weeks. network will compare the actual time it takes to generate 2016 blocks with the two-week goal. It will adjust difficulty to reach the goal.
Power Consumption of a rig: the electrical energy per unit time a rig uses when . It’s measured in the unit of W or KW.
Total profit = the value of Bitcoins obtained via — electricity cost — rig cost — other fees (if any, like maintenance fees, pool fees)
Now, you know the key aspects of a rig and are capable of calculating your profit. You may use these tools to calculate you profit before investing in . Here is a calculator we used quite often:
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Published at Mon, 01 Apr 2019 03:10:45 +0000
