Today, we’ll look at some terms you’ll come across while mining Bitcoins. They are the basics that you need to know in order to run a profitable operation. Get these wrong and you may be out of pocket, get them right, and you’ll be earning a sizable income.
A Hash is the Mathematical Problem that you need to solve to generate Bitcoins. A Hash Rate is the rate at which you can solve those problems. We looked at the AntMiner which came with a Hash Rate of around 14 TH/s. This means it had a rate of around 14 Terra Hash per second.
For Ethereum, we looked at something which had a combined Hash Rate of around 248 MH/s (Mega Hash per second).
It is Hash Rate that you need to look at while calculating profitability. The more people that mine, the harder it gets to mine as the Hash Rate increases. However, Bitcoins are produced every 10 minutes, so there is a very good chance of a profit. Keep in mind the hash Rate, as you’ll have to balance it against the Electricity Rate. This term is useful to know about.
Every device that mines also uses up Electricity. You’ll need to look at your tariffs to calculate your Electricity Rate. You will then have to see how much electricity your mining operation will need, and balance it with the Hash Rate of the equipment.
Each miner consumes a different amount of energy. The term Power consumption defines this. The power of a Mining Rig can be around 1300 W, or 1.3 KW. Make sure you keep this and the electricity rate in mind, before investing in a mining rig. The Antminer is one that can make a profit, and there are others out there as well, but you need to be careful when buying
Mining can be done via joining a mining pool, which is a group of people who put their processing powers together to mine more effectively. Keep in mind that these platforms usually charge their own fees, and this has to be kept in mind as well.
This term is the amount of time it will take you to break even. You should be looking at a time frame of around an year at the most, assuming current rates. While Cryptocurrency rates have risen year on year, this is considered the safest matrix to invest by. Once you’ve calculated all of the above and accounted for it, you be assured that you will profit in your venture.