How to easily calculate the profitability of mining.
When selecting equipment for mining cryptocurrency, it is necessary to find out how effectively it will work and how quickly the money invested will pay off. Specialized services allow you to do this
How to calculate
First Step
There are many various types of mining hardware that are used to produce digital assets. For example, these can be ASIC-mainers by different producers varying in price and specifications.
When choosing equipment, it is important to determine the possible profits it can bring, taking into account all the parameters of a particular model, including its performance, energy efficiency and other characteristics.
Key Terms
There are several basic concepts that you need to know when calculating the profitability of the equipment.
We' ll consider them in more detail in the following cards.
Hashrate
Hashrate ranks the power units of the miners. The higher it is, the more powerful the device. If you know the exact computing power of the equipment, you can calculate how much a particular cryptocurrency can be mined in a certain period of time.
To determine the computational power, the indicator H/s is the number of hashes per second. For example, the hash rate of the whole bitcoin network as of September 28, 2022 was 224.41 EH/s, where E is 1 quintillion (10 to the power of 18).
Mining complexity
The complexity of mining shows how difficult it is to release a new block into the network and get rewarded for it. It is tied to the hash rate directly. The greater the hash rate, the more difficult it is and the opposite is true. This is necessary to keep cryptocurrency issuance at the same level.
Due to the fact that miners know the difficulty of mining a particular coin, they can take this parameter into account when selecting equipment, as well as predict possible changes in the complexity of mining for future periods.
Power consumption and energy efficiency
Two important factors for cryptocurrency mining devices are energy consumption and energy efficiency. The first value shows how much energy the equipment consumes, the second - how efficiently it is consumed, that is, what is the ratio between energy consumption and performance.
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Energy consumption is measured in kilowatt hours (kW⋅h). More energy-efficient devices are often more profitable because they can mine more cryptocurrency with less power consumption.
Payback period
The main parameter for a miner is the period during which the equipment will recover its value, including the cost of electricity, and will begin to bring profit.
If you know the hash rate of the device, its power consumption and the power of the total network on the corresponding algorithm, you can find out the profitability of mining. However, there is an easier way - specialized services.
Due to the overload of information or too complicated interface some calculators are not suitable for the newbies. Intelion Data Systems has improved the functionality of its service, so it is suitable even for non-professional market participants.
