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"We joke about the fact that the bitcoin calculator is" unprofitable. "
Here's how RandomCrypto's CEO, Josh Metnick, described his newly released tool that calculates the profitability of bitcoin mining: the process of solving puzzles to earn bitcoins, Usually only possible with expensive processors called ASICs
Revealed to CoinDesk exclusively, Metnick hopes the new calculator will improve on other tools out there, which he thinks do not paint the whole truth about the fact that 39; mining equipment is worth buying and using.For example, using its new measurements at current prices, the RandomCrypto calculator shows that the most popular extraction hardware is not profitable.
flagship of Bitmain S9 and GMO's new 7nm B2, says
"Our goal is not to show mining as profitable or non-profitable tice: our goal is to bring more truth, accuracy and transparency in the extraction of [proof-of-work]. Sometimes mining activities are profitable and sometimes they are not. create tools and reporting systems to keep hardware manufacturers honest, "Metnick told CoinDesk.
Metnick is quick to point out previous mining scams in the industry as examples of where the industry leaves transparencies and honesty to be desired.
I've spent a good part of my life – years, really, many years – trying to chase Butterfly Labs, Advanced Miner and KnCMiner for the millions of dollars I sent them before they could escape with my life savings "he said.
Since Metnick himself has been active in the mining industry since 2013, it is a project dear to his heart.
Metnick told CoinDesk:
"This computer was born for many years passed to be broken down in various ways by mining companies." [19659011] Dif calculator ferente
Online calculators allow you to enter a series of variables such as the cost of electricity, the cost of hardware and so on, then to generate the amount of revenue at which these variables should refer to, based on the value of the bitcoin at the moment.
The RandomCrypto calculator adds is quite simple, but has never been implemented in existing models, said Metnick.
"What we have discovered, over several years of observations, is that all the major bitcoin mining calculators in circulation show bitcoin mining output as" profit ", rather than what it really is: output," said Metnick.
A key thing that these computers do not include is the "hard" evaluation programmed by bitcoins: the greater the difficulty, the more power is needed to solve the puzzle required to extract bitcoins. So far, the difficulty has grown exponentially with time.
Sites such as CryptoCompare and CoinWarz show difficulty as a static variable, based on what is measured on a specific day.
Metnick argues that because rapid growth in difficulty is not considered in these calculators, it makes mining machines more profitable than they actually are. The RandomCrypto team also argues that if the difficulty has grown exponentially to this point, this trend is likely to continue as in the last 10 years, and the computers must incorporate this fact.
"The mining difficulties have grown exponentially since the advent of bitcoin: deny this, or not incorporate this fact, this reality, in a mining computer, should be illegal, "said Metnick.
CoinWarz declined to comment CoinDesk's requests, while CryptoCompare did not respond before the printing time.
Impossible to predict it
Metnick went on to say that, based on the price of bitcoin at the moment, the small-scale extraction is not profitable at the moment.
of writing this e-mail and the price of bitcoin, there is not a single manufacturer selling a ROI machine [return on investment] at the retail level. Take a moment to stop on that, "he argued.
At least, according to his new calculator, th
But is it really possible to predict it?
Although the bitcoin's difficulty has grown rapidly in the last 10 years, not there is no way to know for sure that this trend will continue.
"It is not as predictable as the sun, the moon and the stars. But it's predictable in a narrow range of specificities, "said Metnick.
Using historical data they combined an algorithm that has been fairly accurate so far, he continued, adding:
" The models we coded May 8 have not changed, and we have been with a precision of 1%. "
Image Calculator via Shutterstock
The leader in blockchain news, CoinDesk is a multimedia point of sale committed to the highest journalistic standards and adheres to a strict set of editorial policies CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrency and blockchain startup.
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