In today's digital currency boom, Bitcoin has always been the focus of attention. With the fluctuation of Bitcoin prices, people have doubts about whether mining can still be profitable. This article will explore the profit prospects of mining Bitcoin from multiple perspectives such as Bitcoin computing power, mining machine costs and income calculation, revealing the pros and cons and reality.

The rise of Bitcoin computing power

The birth of Bitcoin has ushered in the blockchain era. Mining, as an important means to maintain network security and confirm transactions, has extremely high requirements for computing power. With the prosperity of the Bitcoin market, mining computing power is also growing worldwide. Miners have invested more computing power to compete for block rewards, which has also led to the rising cost of mining machines.

Mining machine cost and income calculation

The core of mining lies in mining machines, and the cost of mining machines is one of the important factors affecting mining profitability. The price and performance of mining machines directly affect mining income. At the same time, factors such as electricity costs and maintenance costs also need to be fully considered. Under the current market conditions, the price of mining machines is relatively high, and the fluctuation of Bitcoin prices has also greatly affected mining income.

Is mining Bitcoin profitable now? 

For ordinary miners, whether mining Bitcoin is profitable now depends on the comprehensive consideration of multiple factors. The first is the price of mining machines. The high cost of mining machines will directly affect the return on investment. The second is the cost of electricity. The electricity prices in different regions are different, and miners need to make reasonable choices based on local conditions. In addition, the fluctuation of Bitcoin prices is also a factor that cannot be ignored. The price drop will directly affect the profitability of mining.

Empirical data analysis

According to the latest data, with the continuous fluctuation of Bitcoin prices, the balance between the cost and income of mining machines is also changing. Some data show that the output capacity of some high-performance mining machines is quite considerable, but their prices are also quite expensive. This requires miners to conduct a comprehensive cost-benefit analysis when investing to ensure that they can obtain stable profits.

Creative insights

At present, mining Bitcoin is no longer as simple as simply obtaining profits. Miners need to have a keen insight into the market and constantly update their mining strategies. Only by constantly learning and adjusting their investment portfolios can they remain invincible in the fierce market competition.

Conclusion

In summary, whether mining Bitcoin is profitable depends on the comprehensive consideration of multiple factors. Factors such as mining machine costs, electricity costs, and Bitcoin prices will directly affect the profitability of mining. When choosing to mine, you must be cautious and do sufficient market research and risk assessment to gain more profits in this wave of digital currency. Although mining is an investment with both risks and opportunities, only by continuous learning and practice can you remain invincible in this field full of opportunities and challenges.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Is it still profitable to mine Bitcoin now? The most useful and informative topic in this chapter is the cost-benefit calculation of Bitcoin. Next, we will go deeper into the core logic of the problem step by step.

Lead readers to go deeper into the core logic of the problem step by step.

First, open the Btc.com website, and there is a piece of content in the lower right corner.

For the content inside, we will look at the total network computing power today, which is 90.27 E at this time.

Take a currently most common high-computing mining machine as an example (Bitmain Ant S17+)

Parameters that need to be known:

Computing power: 73T hash/s (generally abbreviated as T, the full name is T hash/s)

Power consumption: ≈3 kw

Electricity fee: 0.33 yuan/kWh

Total network computing power: 1000E hash/s

All the above parameters can be changed:

For example: different mining machines have different computing power and power consumption.

The electricity fee is different for each miner, some are 0.2 yuan per kWh, and some are 0.38 yuan per kWh. Just from the price point of view, thermal power and hydropower are different, and different time periods are also different. Looking at the whole year, 3.3 yuan per kilowatt-hour is a fair figure, which is neither cheap nor expensive.

The computing power of the entire network has also fluctuated, and it may increase in the future. However, our following calculations are based on the 93E computing power of the entire network in the recent period.

Let's calculate the most essential thing, how much profit can 1T computing power make in one day.

Profit = sales - cost

The cost is mainly electricity costs (1 kilowatt-hour is 1kwh, and a 1kw machine consumes 1 kilowatt-hour of electricity for one hour), and the sales volume is how much the bitcoin mined every day is worth when sold.

Cost formula: 3kw x24h x 0.33÷73T = 0.325 Unit: RMB per ton per day

Sales formula: 1T/ (93x10^6T) x 12.5 x 6 x 24h x50000= 0.9677 Unit: RMB per ton per day

The above content is briefly explained. A 3kw machine runs for 24 hours a day, which means it consumes a few degrees of electricity a day. Multiply it by 0.33 yuan to get the electricity cost of that much electricity. Divide it by 73T, which is the electricity cost of one ton a day.

1T computing power divided by the total network computing power 93E, the unit needs to be converted, 1E=10^6T, currently the reward for a Bitcoin block is 12.5 coins, about ten minutes a block, one hour is equal to 6 ten minutes, so multiply by 6. Then multiply by 24 hours a day, and you can get how many BTCs can be mined with a T computing power in a day, and then the price of Bitcoin is about 50,000 yuan per one, so you can get how much the coins mined with a T computing power in a day are worth when sold.

Profit formula: 0.9677-0.325=0.64 yuan

This is how much money 1T computing power makes in a day.

There is something interesting about the above content. The electricity cost of one kilowatt-hour in the cost formula is 0.33 yuan. The cost of one day is calculated to be 0.325, which is about equal to one kilowatt-hour of electricity. Look at the power consumption of a single T, 3kw/73T=41W, that is, when the power consumption of a single T is close to 40w, one T consumes one kilowatt-hour of electricity a day.

So for this 73T machine, the profit per day is: 0.64 x 73 = 46.7 yuan

If the computing power of the entire network remains unchanged, the block reward (12.5 BTC) remains unchanged, and the price of Bitcoin remains unchanged, how long is the payback period?

Assuming that the price of this machine is 15,330 yuan, 15,330/46.7 = 328 days. That is 11 months. Nearly a year.

After the Bitcoin halving in June next year, the 12.5 in the sales formula will become half, that is, 6.25. Then this income will be extended.

If the computing power of the entire network increases (no longer 93e but 100e, or 120e), that is, the denominator in the sales formula becomes larger, the number becomes smaller, and the income decreases.

If the price of Bitcoin is no longer 50,000 per coin, the price rises, the income increases, and the price drops, the income decreases.

The so-called "cloud computing power" is also the same algorithm. The essence of a regular cloud computing company is still to mine Bitcoin with a mining machine and obtain block rewards.

This article is to teach you the specific formula method for calculation. Of course, you can set the table formula according to your personal needs, and then change the parameters according to your needs.

The parameters that may change are as follows:

1. The computing power of the mining machine

2. The computing power of the entire network

3. The power of the mining machine

4. The cost of one kilowatt-hour of electricity

5. The reward of the block

Based on the basic formula of the calculation method, more complex changes and calculations can be made according to needs. Readers can think about this carefully. Combined with the three contents of Bitcoin mining, strengthen the understanding of Bitcoin mining.