Hash calculator bitcoin
A kilowatt-hour (kWh) is the number of kilowatts (thousands of watts) used per hour. Most of us are at least vaguely familiar with the watt, however the electrical consumption of most appliances is measured in kilowatt-hours. Before we can start calculating this cost, we need to discuss how we measure power. Our only recurring cost is the price of electricity (assuming we already have internet access). It’s important to note that these expenses need to be paid before we’ve generated any revenue. Assuming the price of these is roughly $180, that means we’ve spent $2,500 on startup costs. However, the miner will also need a power supply, Ethernet cable, and power cable, among other accessories. Going back to our example, the price of a Bitmain Antminer S9 was $2,320. (Of course, in real life most miners will last only a few years until they break down and/or become obsolete, so our calculations here can only forecast a couple years into the future.) If we don’t account for capital depreciation, we can assume each miner to have an infinite lifetime. The only one-time cost is the price of the miner itself and associated gear. Our costs can be broken up into two categories: one-time costs and recurring costs. Now that we have our revenue, let’s start thinking about some of the costs we might encounter. At the time of this example, the network hashrate was 15 million TH/s.Īt the then-exchange rate of $13,500 per bitcoin, that would equal $27.12 per day. The first step would be to calculate what percentage of the total network hashrate our miner would represent. In this example, we’ll calculate everything on a daily basis. To figure out how much we would earn from investing in this one miner, we need to first figure out how many bitcoins this machine would mine in a given time period. Each miner mines Bitcoin at a rate of 13.5 TH/s (see archived webpage here). Since Bitmain dominates the mining gear industry, you’re considering purchasing one of their Antminer S9’s. Bitcoin has just made all-time highs, and you’re considering investing in a miner to cash in on this bull market. Let’s go back in time to New Year’s Day 2018. But how do you know which cryptocurrency would be most profitable to mine? Consider the following example: Since each miner can solve only certain types of algorithms, you need to decide which cryptocurrency to mine before you purchase a miner. To start, you need to consider which cryptocurrency would be most profitable to mine. When mining, your main (and only) revenue stream is the value of the cryptocurrency you mine.
#Hash calculator bitcoin how to
Let’s start by learning how to calculate total revenues and total costs, while utilizing a real-world example.