Instructions on how to calculate mining profits for newbies

By F | Peach

How to calculate mining profits

In this article, I will show you how to calculate mining profits and answer some frequently asked questions.

Start writing yourselves!

To quickly calculate the profit of mining, you can visit the website Cryptocompare >> Mining >> Mining Calculator.

The example below I calculate the profit when digging BTC:

  • Hashrate: 4730 GH / s
  • Capacity: 1293 W
  • Electricity cost: $ 0.01 KWh
  • Pool Fee: 1%

So in a year, with the above parameters brothers profit about $ 102. This number will multiply many times when you own a larger hasrate (many excavators than).

You explore the shelves of the types of excavators here <<

Frequently asked questions when mining

The costs of mining

Here are the most basic costs for brothers who buy the machine and dig their own coin:

  • Excavator hardware purchase cost.
  • Operating costs: Installation fee (if any); Electricity money running the mining machine; Maintenance fee; Labor costs; Money for hardware upgrades.

In particular, electricity is the largest part of operating costs. Brothers in Vietnam, if you want to save this cost, you should find specialized power for production.

Below is the price list of electricity for production provided by Vietnam Electricity Group - EVN.

How much electricity is mined?

Electricity costs are probably the most significant part of the cost of mining. As mentioned above, you should find the production power supply to get the best electricity price.

A 6 VGA RX 570 8G, 180 Hash capacity consumes 22 numbers a day on average, about 1 million VND per month.

The cost of electricity is more or less dependent on the amount of miner & the machine you use.

Why doesn't the CPU need to be so strong when mining?

CPU (Central Processing Unit) or central processor, it was born to handle many tasks on the computer.

For example: You just played a game, opened Microsoft Office, listened to music in the browser, rendered video ... But in the mining machine, it only needed to handle one task. It is focusing the power to handle mining algorithms.

So, you do not need a CPU too strong, just a CPU enough to run Windows is enough, even RAM.

In a nutshell, the CPU is a "rather leisurely" component in an entire plow of buffalo plowing, it only needs to coordinate the "work" of centralized VGA graphics processing.

Also, anyone who knows the hardware will know that a mainboard will only allow 1-2 CPUs to be plugged in. That is, if you want to install multiple CPUs to dig, you have to use many mainboards, this will cost you to buy mainboards.

A plugged-in mainboard, on the other hand, can be extended to 6-8 VGA or more. So it will save money on hardware compared to using CPU.

What is the most important piece of hardware when mining?

As I mentioned above, VGA graphics card is the most important component of a mining rig. It largely determines the mining speed or mining performance.

The future of mining?

This will surely be a question many people are interested in when they want to buy a machine to dig.

Firstly, I want to talk about the difficulty of mining, you can watch about the Hashrate of BTC in the past three years. Obviously, the difficulty increases very quickly, this directly affects the amount of coins you mine.

At the same time, more and more people are participating in mining, making it more and more competitive.

However, why do so many brothers continue to believe in mining? Here are some reasons:

  • PoW The proof-of-work mechanism according to me is not easy to replace it with other algorithms such as PoS or PoSV ... Remember that most of the largest coins currently maintain the PoW: BTC mechanism, ETH, LTC, ZEC, XMR ...
  • Mining helps increase the security of the blockchain. Because a hacker wants to reverse the transaction, they must own more than half of the Hashrate. This is almost impossible, especially for large coins.
  • There are still new coins developed under the PoW mechanism. These will be new opportunities for you to catch up quickly. The closest I see two successful coins is GRIN & BEAM using PoW mechanism. In early 2019, many miners made a profit from digging these two coins.

In addition, I also want to talk about the trend of using new consensus mechanisms such as PoS, PoSV ...

These blockchains operate by proof of stake mechanism. Participants confirm transactions, create blocks just stake their coins, or use a computer not too big to participate.

Obviously, dig pools don't have too many roles here. This will be the opponent of the Miner in the future. However, this is far from affecting you.

In the future, I think PoW and PoS will still exist in tandem.

There should overclock the graphics card to increase performance

Yes.

This is very common for brothers who build their own machine to dig coins.

What if the power is lost while mining?

All the coins you earn from mining are stored on the blockchain addressing the wallet that you originally installed. So don't be afraid to lose that coin.

The only thing you took is the time to reopen the device and reinstall. In addition, the sudden loss of power during the operation of the entire machine will make the machine's service life is not long.

What is a mining pool?

Mining pools are organizations / companies that own large amounts of miners / hashrate for mining. They have the advantage of large excavators and cheap electricity.

Digging pools often have a big say when voting in a blockchain network.

The largest mining pool in the world today

Here are the largest mining pools in the world, according to Etherscan statistics such as Spark Pool, Ethermine, F2Pool Nanopool, Zhizhu, MiningPoolHub, Hiveon Pool, Mining Express, BTC.com ...

Should BTC or not?

Have!

BTC mining is still profitable, why not digging.

However, I want to note to you a few notes before deciding to buy the machine to dig:

  • Must prepare knowledge of mining coins to understand and calculate the profits and risks.
  • There is abundant capital, because investing a lot of money in the rig but you do not get it back immediately, it takes time even years. You need capital to operate and pay monthly facilities.
  • Do not invest sporadically. I know there are many brothers who want to mine coins to generate passive income, but the small investment of 1-2 machines does not generate significant profits for you compared to the risks you may encounter. Therefore, it is necessary to determine the size and ability inherent before starting.

summary

I have just introduced to you how to calculate the profit of mining and answering the frequently asked questions.

Hope you have more clarity about mining. In the next article, I will introduce about Cloud Mining - a service that allows you to participate in remote mining.

Hello and see you again in the next article!

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