Due to the possibility of extraction, cryptocurrencies are often compared to precious metals or minerals. Extraction of digital coins, especially Bitcoin, is a multibillion-dollar industry. In this article we will analyze what complexity of the mining industry depends on, find out what it's a hashrate and, of course, answer the main question: is it profitable to be engaged in mining in 2018? So, first.
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Why does the complexity of cryptocurrency extraction grow?
What is a hashrate and what does it depend on?
How profitable is the mining sector in 2018?
Blockchain it consists of a chain of blocks found by miners. This is basically the process of extracting new coins. To open a new block, the miners must solve a complex mathematical problem, after which they receive a prize in the form of an unlimited number of coins. Every coin has a different reward.
The cryptocurrency suppression number has a limited number of coins, for example, Bitcoin has 21 million coins. Initially, in the Bitcoin algorithm, every new block generated every 10 minutes was placed, ie the last coin will be extracted not before the year 2140.
At the beginning the participant network was very small, so the complexity was minimal. But with the growing popularity of the currency, the number of miners increased and, to maintain the program, it became necessary to take control of the pace of the mines. The Bitcoin network reconsiders the complexity at block intervals of 2016. If the miners open them in less than 2 weeks, the difficulty increases, if it is longer, then decreases.
For a regular user, such words may seem like a rocket science, but this is not as difficult as it seems at first.
The hashrate network is the total computing power of all active miners. The more equipment is engaged in mining, the more quickly the problem will be solved and, as a result, the network will respond with increasing complexity.
Each processor, video card, asicator, etc. It has its hashrate (hash / second). Depending on the power of the equipment, this speed may be different, for example an average video card can provide a minimum of 15-20 MH / s and a specialized ministry 14-16 TH / s.
To know the complexity of mining, you need to know the hashrate of the network. To obtain this data, it is better to visit the official coin sites or use third-party services that keep track of these indicators online. But it is important to remember that this Bitcoin extraction calculators they are not always accurate, since the hashrate is a very dynamic indicator. To get a more accurate picture, it is better to collect data from different sources and determine the average value. Here are some popular services:
As you can see on this chart, the hashrate of the Bitcoin network is constantly growing.
In September 2018, there are 53 exahash per second. This is a rather large value, which, unfortunately, makes Bitcoin extraction absolutely unprofitable for most people.
Industry experts have calculated that the complexity of popular coin networks increases by around 7-8% each month. For this reason, starting to extract cryptocurrencies with high complexity in 2018 is not really profitable.
There are several options:
- Invest a large amount of money in equipment. This will increase the reward share, but it is not a fact that it will pay the money invested, because due to the constant increase in complexity, computing machines can become almost useless. In the event of greater complexity, even the acceleration of the video card for mining will not help, as it gives an insignificant increase.
- Expand the extraction of unknown coins, which does not require a large capacity. This option is also rather risky, since there is the possibility that this cryptocurrency does not increase in price.
- Mina coins that are already widely known, but their complexity has not yet grown to huge values. For example, Dash, BTC Cash, Monero, Litecoin, etc. In terms of risk / profit ratio, this is the most optimal and balanced solution.
The steady increase in the complexity of popular coin networks, unfortunately, makes their mining activity an absolutely unprofitable business for most people. To be successful in the mining industry, you should always keep the hash rate in mind and be able to shift the focus on extracting another currency over time.
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