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Is Bitcoin mining profitable?

The most basic answer to the question: is Bitcoin mining profitable? Would be to say: “Yes, but it depends on how much you’re willing and able to spend.” To work out work out if mining bitcoins is profitable you’ll need to find a Bitcoin mining calculator.
    Getty – Philippe Lopez

Bitcoin mining calculator

This is a complicated business so you'll need a Bitcoin calculator to work out the profitability of your potential investments. You'll find some good ones at coinwarz.com and bitcoinwisdom.com. These calculators work as a rough guide to the profitability you can expect. They're based on statistical calculations and don't account for exchange rate fluctuations or the pool's efficiency, if you're mining using a pool.

Pool

If you are mining using a pool, then the expected earnings can vary greatly depending on the pool's efficiency, the orphan rate and fees. If you're mining without a pool, the estimations vary depending on factors like reject rates and ultimately luck.

Making money from Bitcoins

There are three ways in which you can get Bitcoins. You can be paid them in return for a service or product, you can buy them or you can make them through Bitcoin mining. Bitcoins come into existence as a result of a calculation that involves hardware and energy costs. This complicated system means that each new Bitcoin is harder to mine than the one before. Now that there are so many in existence, lots of computers are needed to mine them. There are even custom Bitcoin mining computers on the market which come with ASIC chips (application-specific semiconductor chips) that optimise Bitcoin mining algorithms.

Hash rate

The speed of calculation is the main determining factor on profitability. It's called the hash rate. To make money from bitcoins you need the hash rate high with the cost of hardware and energy low.

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