Editor's Note: Original text fromcointelligence,author:Paul Maritz。
Editor's Note: Original text from
Translator | Odaily Qi Ming
If you are serious about mining and want to make a profit from it, then you must understand how you can maximize your equipment and investment resources. If you don't know what kind of equipment to buy and how to maximize its usefulness, then in the long run, you can't lie down and make money. Also, if you don't know your mining profit, it may cost you a lot of money or you will overestimate the profit. This guide will tell you how to calculate the profit of mining and recommend corresponding tools for calculating profit.
Factors Affecting Mining Profitability
algorithm
Many factors will affect the profit of mining. Among them, the most important factors are the price of cryptocurrency, algorithm, mining hardware and hash rate of the network.
SHA-256
algorithm
Crypto mining is the process of computing complex cryptographic puzzles. Through such a POW (Proof of Work) process, miners will be rewarded with encrypted digital currency. There are currently two proof-of-work hash algorithms widely used in encryption mining: SHA-256 and Scrypt. This article discusses only these two main algorithms.
Scrypt
SHA-256 is an algorithm for computing cryptographic puzzles in a brute force manner. At first, bitcoins could be easily mined with only the CPU and GPU (graphics processing unit) cards of an ordinary laptop. But in recent years, as mining bitcoin has become more difficult, encryption hardware has also been continuously upgraded, resulting in the emergence of specialized processors called "application-specific integrated circuits" (ASICs). Today, bitcoins can only be mined with this type of mining rig.
The Scrpyt algorithm was developed by the famous FreeBSD hacker Colin Percival for his backup service Tarsnap. The original design was to reduce CPU load, rely on CPU calculation as little as possible, and use CPU idle time for calculation. Therefore, Scrypt not only takes a long time to calculate , and it takes up a lot of memory, which makes it extremely difficult to calculate multiple summaries in parallel, so it is more difficult to use rainbow table (rainbow table) to carry out brute force attacks.
hardware
Any encrypted currency based on the Scrypt algorithm can be mined with the Scrypt algorithm mining machine, and currently it is more used to mine Litecoin. These cryptocurrencies are not as difficult to mine as Bitcoin.
hardware
There are currently two main ways to arrange these mining systems.
DIY mining machineRegarding how to DIY mining machines, Odaily has previously reported "》。
ASIC
Start the mining journey and teach you to DIY an Ethereum graphics card mining machine
text
ASICs are faster at computing algorithms and require less power since they are specifically designed for mining.
The mining efficiency of different systems can be calculated as follows: the number of hashes that can be executed per second is divided by the power consumed to calculate, that is, hash speed / power consumption = mining efficiency.
secondary title
Earnings Profit Calculator
CryptoCompare There are many websites that will calculate the profitability of mining a particular cryptocurrency based on the mining rig you are using, power consumption, cost, and other parameters. Some calculators are relatively simple with fewer parameters, while others are more advanced with multiple parameters, such as hash rate, power consumption, electricity price, mining pool fee, difficulty, block reward, USD price, etc. Profitability can be calculated according to different periods, such as hours, days, months, and years.
CoinWarz When you first start digging into mining, you are immediately overwhelmed by the amount of trivialities as there are so many factors that affect the profitability of mining. Some software with a simple user interface will be easier to use.
99Bitcoins is a calculator that provides many parameters with default values, but also allows you to enter your own hash power, power consumption, cost per kWh, and pool fees. With these parameters, you can estimate your daily, weekly, monthly and annual profits. However, it does not account for future difficulty changes, leading to a potential overestimation.
Is a calculator similar to CryptoCompare, but you can also enter parameters such as difficulty, block reward, bitcoin dollar price, and increase hardware costs.
MyCryptoBuddy A similar customizable calculator is provided, except that many of the parameter values on it do not have default values.
NiceHash Of course, there are other calculators that take future price and difficulty changes into account.
The customization features of the aforementioned sites are available, along with options for monthly price and difficulty variations. Based on these entered parameters, the site will generate a graph of your potential future earnings, allowing you to see what will happen to your future profitability.
BuybitcoinWorldwide Allows users to check profitability against specific mining hardware, allowing you to check monthly profitability when using NiceHash's hardware. This type of result is more focused on backtesting profitability rather than predicting profitability.
Most mining calculators show higher profits than actual profits when the growth rate is factored in.
in conclusion
in conclusion
Mining allows you to make money lying down. However, considering various factors that affect mining profitability, especially when some factors are not under the control of individuals, it is still quite difficult to accurately predict mining profitability.
Start the mining journey and teach you to DIY an Ethereum graphics card mining machine
