Blog Archive

Bitcoin pool mining profitability

Bitcoin Pooled mining (BPM), also known as "slush's system", due to its first use on a pool called "slush's pool', uses a system where older shares from the beginning of a block round are given less weight than more recent shares. This reduces the ability to cheat the mining pool system by switching pools during a round, to maximise profit. Bitcoin Mining Profitability Calculator Calculate your monthly revenue and profit/loss, cumulative profit/loss, and operational cash flow with customized inputs and graphs to visualize the output with our Mining Insights tools. Pool hopping is a mechanism by which certain miners may exploit the payment mechanisms of pools to dramatically increase personal profits. The original mechanism by which funds were distributed to miners is the simplest and most obvious: Each miner submits "shares" of work and when the pool finds a block, the divide the block reward based on the proportion of the shares - if you did 50% of the.

Bitcoin pool mining profitability

mining profitability - What is pool hopping? - Bitcoin Stack Exchange

My first answer only refers to the " how do pool hoppers affect other miners? The loss to full time miners at a standard proportional reward pool can be calculated as:. If you're a miner, mine at a pool using one of the above reward methods. Either that or mine solo. Sign up to join this community.

The best answers are voted up and rise to the top. What is pool hopping? Ask Question. Asked 8 years, 2 months ago. Active 1 year, 1 month ago. Viewed 24k times. What is pool hopping and how do pool hoppers affect other miners? Are there ways to prevent it? Haribo Dr. Haribo 8, 10 10 gold badges 38 38 silver badges 60 60 bronze badges. Active Oldest Votes.

Meni Rosenfeld Meni Rosenfeld David Perry David Perry 14k 5 5 gold badges 58 58 silver badges 99 99 bronze badges. If pool hopping works, that means hoppers get more than their fair share. That means someone must get less than their fair share.

Take one guess who that is. I'm sorry but I have to downvote for the wrong and very misleading remark that hopped pools pay fairly over the long term. Will undo when that's fixed. I think you're working with an altered definition of "fair" that is only correct for PPS or other newer methods.

You're being paid exactly what you're supposed to be paid. At the times when the miners leave your shares are worth proportionally less than average. Hoppers aren't stealing from regular users, their share values will even out, they are simply mining at whatever place is most profitable for them right now - the failure of prop isn't that it lets hoppers "steal" it's that hopping creates volatility that pools are supposed to prevent.

I've been chatting with Meni outside of comments and I think I see where my brain was failing me yesterday - let's just say it all boils down to "don't do then argue about research while you're sick and pumped full of mind-altering medications.

Sign up or log in Sign up using Google. Sign up using Facebook. Sign up using Email and Password. Post as a guest Name. Email Required, but never shown. The Overflow Blog. Podcast What can you program in just one tweet? Ciao Winter Bash !

Featured on Meta. New Feature: Table Support. Swag is coming back! Linked The second source of revenue for Bitcoin miners is the transaction fees that Bitcoiners have to pay when they transfer BTC to one another.

This is the beauty of Bitcoin. Every transaction is recorded in an unchangeable blockchain that is copied to every mining machine.

Every miner needs to know the relevant tax laws for Bitcoin mining in his area, which is why it is so important to use a crypto tax software that helps you keep track of everything and make sure you are still making enough money after you account for taxes.

First of all, Bitcoin mining has a lot of variables. This is why buying bitcoin on an exchange can be a simpler way to make a profit. However, when done efficiently it is possible to end up with more bitcoin from mining than from simply hodling.

One of the most important variables for miners is the price of Bitcoin itself. If, like most people, you are paying for your mining hardware, and your electricity,- in dollars, then you will need to earn enough bitcoin from mining to cover your ongoing costs; and make back your original investment into the machine itself. Bitcoin price, naturally, impacts all miners. However, there are three factors that separate profitable miners from the rest: cheap electricity, low cost and efficient hardware and a good mining pool.

Electricity prices vary from country to country. Many countries also charge a lower price for industrial electricity in order to encourage economic growth. This means that a mining farm in Russia will pay half as much for the electricity you would mining at home in the USA. In practical terms. These days there are several hardware manufacturers to choose from.

The price of hardware varies from manufacturer to manufacturer and depends largely on how low the energy use is for the machine vs the amount of computing power it produces. The more computing power, the more bitcoin you will mine.

The lower the energy consumption the lower your monthly costs. Longevity is determined by the production quality of the machine. It makes no sense to buy cheaper or seemingly more efficient machines if they break down after a few months of running. One useful way to think about hardware is to consider what price BTC would have to fall to in order for the machines to stop being profitable.

You want your machine to stay profitable for several years in order for you to earn more bitcoin from mining than you could have got by simply buying the cryptocurrency itself.

Unfortunately most older machines are now no longer profitable even in China. The Bitmain S9 has been operational since and interestingly enough they are still being used in Venezuela and Iran where electricity is so cheap that it outweighs the risk of confiscation. There may, eventually, be more reputable sources of sub 2 cents electricity as the access to solar and wind improves in North America.

For the individual miner, the only hope of competing with operations that have access to such cheap electricity is to send your machines to those farms themselves.

Not many farms offer this as a service though. These days, every miner needs to mine through a mining pool. Whether you are mining with one machine, or several thousand, the network of Bitcoin mining machines is so large that your chances of regularly finding a block and therefore earning the block reward and transaction fees is very low. With one block per 10 mins they may have to wait 16 years to mine that one block. The oldest two pools are Slush Pool and F2Pool. Here comes the science part….

Pool fees are normally 2. Choosing the right mining pool is very important, as you will receive your mined bitcoin sent from the pool payouts every day. An often overlooked facet of mining profitability is the fees one pays to sell the Bitcoin one mines. If you are a small time miner, you may have to sell your coins on a retail exchange like kraken or Binance. Sometimes your fees are low but sometimes your fees are high - it really just depends on the fee structure of the exchange and the state of the orderbook at the moment.

However, if you are a professional miner like F2 or Bitmain, you likely have really advantageous deals with OTC desks to sell your coins at little to no fees - depending on the state of the market. Some miners are even paid above spot price for their coins. If you think you have what it takes be mine profitably, we suggest you make sure first by using our mining profitability calculator.

Bitcoin farms that operate at scale use these advantages to maximize their returns. As the difficulty of mining bitcoin increases, and the price lags behind, it is becoming harder and harder for small miners to make a profit. It all comes down to scale and access to cheaper prices.

When people enter the space, without prior relationships, they struggle to compete with established mining operations. Bitcoin mining is starting to resemble similar industries as more money flows in and people start to suit up. With increased leverage, margins are lower across the whole sector. Soon, large scale miners will be able to hedge their operations with financial tooling to lock in profits, whilst bringing in USD denominated investments like loans or for equity.

As mining becomes more professional , it will make things even harder for DIY miners. If you have put in the effort to learn about mining, and you have found a location with low cost electricity for your machines, then you still need to consider where to store the bitcoin that you mine. It is possible to mine direct from the pool to an exchange , but we recommend you keep your bitcoin in a wallet where you have access to the private keys.

No, and in the case of Bitcoin, it almost never was.

Mining pool Your Answer

Yes, mining Bitcoin is still profitable - based on the mining hardware hashrate of TH/s, electricity costs, and pool / maintenance fees provided. While, mining Bitcoin is still profitable as of right now Mining profitability can change very quickly. Find out what your expected return is depending on your hash rate and electricity cost. Find out if it's profitable to mine Bitcoin, Ethereum, Litecoin, DASH or Monero. Do you think you've got what it takes to join the tough world of cryptocurrency mining? Bitcoin Pooled mining (BPM), also known as "slush's system", due to its first use on a pool called "slush's pool', uses a system where older shares from the beginning of a block round are given less weight than more recent shares. This reduces the ability to cheat the mining pool system by switching pools during a round, to maximise profit. Tags:Risk investing in bitcoin, Futuros de bitcoin que son, Bitcoin private network mining, Bitcoin earning free guide, Europa casino bitcoin

0 thoughts on “Bitcoin pool mining profitability

Leave a Reply

Your email address will not be published. Required fields are marked *