Is Bitcoin Mining Profitable or Worth it in 2018? The early days of Bitcoin is bitcoin gpu mining profitable franchises are often described as a gold rush. Those with a strong interest in such things, namely cypherpunks, cryptographers, technically-minded libertarians and assorted hackers, were first to stake their claim. But is there still gold in them thar hills?
Bitcoin mining has grown from a handful of early enthusiasts into a cottage industry, into a specialized industrial-level venture. The easy money was scooped out a long time ago and what remains is buried under the cryptographic equivalent of tons of hard rock. Only those with specialised, high-powered machinery are able to profitably extract bitcoins nowadays. While mining is still technically possible for anyone, those with underpowered setups will find more money is spent on electricity than is generated through mining. In other words, mining won’t be profitable at a small scale unless you have access to free or really cheap electriciy. A new block is created on average every ten minutes. Proof of Work Hashing: This is the cryptographic work which miners perform in order to find the solution which allows them to define a new block.
PoW hashing ensures the proper function of the Bitcoin blockchain. There are no shortcuts in this process, which can only be solved with raw computational power. By correctly hashing the current block, miners prove their investment of work and are rewarded with a certain number of newly-created bitcoins. The number of newly-created bitcoins, awarded to whichever miner creates a block. This number was initially set to 50, halved to 25 in late-2012, and halved again to 12.
The next halving event expected is around mid-2020. 210,000 blocks, until all 21 million bitcoins are created. Hashrate: Hashrate is the measure of a miner’s computational power. In early 2017, Bitcoin’s collective hashrate reached nearly 4 Exahash.
D of such hardware, and electrical expenditure. Difficulty: With hashrate shooting up over the years, it would seem blocks would be found by miners ever more rapidly. Bitcoin’s Difficulty measure is what prevents this from happening. It adjusts to hashrate to ensure that blocks are found roughly every 10 minutes. Note how closely Difficulty matches Hashrate in the 2 charts above. Electricity is the major on-going cost of Bitcoin mining. The price paid per Watt will greatly influence profitability.