Why do you need the mining Bitcoin calculator?
I will let you know exactly why in a moment. First, let’s through some background information.
Mining is the means through which the community supports the network. And to incentivize this support, the Bitcoin core protocol is designed so that it issues new bitcoins to those who offer the necessary computer power.
A miner is a machine that provides the computing power to the Bitcoin network. It anticipates winning some of the rewards.
A miner also refers to the person or persons who own the mining equipment connected to the bitcoin network.
Indeed being a miner is being some kind of entrepreneur. You incur some costs and then hopefully recoup them along with a profit margin.
In the early days of Bitcoin, a simple desktop computer could do mining, and you did not have to spend a lot on electricity.
However, things have gradually changed in particular with the growing mining difficulty, which rendered ordinary desktops obsolete regarding mining.
Today you have to use superior equipment that can provide the really high hash rate to stand a chance to make any money from mining.
Excellent single mining equipment costs not less than $5000, and you need several of them to have a meaningful mining operation.
And owing to the computer power this equipment generates, it consumes a lot of electricity, and that means you have to spend a lot on power.
Also, today for you to stand a reasonable chance of winning the mining reward, you need to join a mining pool. This is a platform where miners from different parts of the world consolidate their computer resources and mine as a single entity.
Since a mining pool becomes a potent virtual mining machine, it stands an even better chance of winning the mining reward.
And the members of the pool share the reward according to what each member contributes.
But each member ends up paying some fees to the people running the mining pool, and this is a cost you have to have in mind when you consider mining Bitcoin.
Now, let’s recap the cost items that you should incur to carry out a viable mining operation; that would be the cost of buying the mining equipment, the cost of electricity, and the fees you will pay to the mining pool.
Of course, there are also other costs, such as labor and setting up costs. But you can know the impact of those after you figure out what you can end up making after taking away the first three primary cost items.
And that is what the mining Bitcoin calculator helps you find out. You input the initial cost of the mining equipment, the hash rate of your equipment, the cost of electricity per unit, and the fees the mining pool expects you to pay.
The mining Bitcoin calculator will then give you the best possible revenue you can. You can then go ahead and subtract the other cost you identify you might incur, such as labor from that revenue the calculator give you.
Indeed Mining Bitcoin Calculator is a critical tool for anyone who wants to get serious with Bitcoin mining.