Find out what your expected return is depending on your hash rate and electricity cost. Find out if it's profitable to mine Bitcoin, Ethereum, Litecoin, DASH or Monero. Do you think you've got what it takes to join the tough world of cryptocurrency mining? For example, when you buy 2 Bitcoins (BTC) at $ and sell them at $, the transaction size is 2 Bitcoins (BTC). To calculate your profit, let’s take the selling price of $, subtract the buying price of $ and multiply the difference by the transaction size. That makes a profit of $ In order to use this Bitcoin profit calculator - you need to enter the amount you were willing to invest and the date you were willing to invest it at. Based on those two inputs, the calculator will determine the profits (or loss) you’d have made since then.
How to compute profit in bitcoinHow to Calculate the Profitability of Bitcoin Mining - Bitcoin Market Journal
Bitcoin functions in a similar manner. The higher the demand the higher the price. Elasticity: Price elasticity of Bitcoins is quite high. This means that a little drop in the price of Bitcoins could result in a large number of people buying Bitcoins.
This is why dips are always followed by periods of rapid price gain. People want to capitalize on the low prices and buy in large numbers. These are the major factors which determine the price of Bitcoins and are a result of the high volatility.
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Bitcoin BTC. What Determines the Price of Bitcoins? Recent News. However, it needs to be stated that there are certain assumptions that go into profitability calculations, such as where the price of bitcoin will trade and how the mining difficulty will evolve. Hence, any bitcoin mining profit calculation is only a rough estimate and will not accurately predict mining returns in the future.
The annual income, using the above-mentioned assumptions of price and mining difficulty stability, would be 0. As the example shows, bitcoin mining is rather costly to set up and has several variables such as bitcoin price, mining difficult, and electricity costs that come into play. Hence, it is difficult to accurately predict the profitability of mining. The key differentiating factors are that you have to pay a maintenance fee to the provider and that your contract can be canceled should bitcoin mining no longer be profitable due to a prolonged drop in the price of bitcoin.
Having said that, the return on investment periods are very similar. According to 99Bitcoins , if you have 1. That would mean it would take you around days to break even on your bitcoin cloud mining contract. The benefit of cloud mining is that it is much easier to get started as it incurs less startup capital and requires zero technical knowledge about bitcoin mining.
If you can afford to purchase multiple bitcoin miners, such as the Antminer S9, you can set up a small bitcoin mining operation, join a mining pool, and start earning bitcoin.
However, this will only be profitable if you have low electricity costs. In reality, for most individuals, mining bitcoin using hardware in their home will likely not be a very profitable venture due to electricity and maintenance costs as well as increasing mining difficulty. As an individual with little investable capital, your easiest option to get involved in bitcoin mining is by purchasing a bitcoin cloud mining contract.
Provided the price of bitcoin does not drop and stay below a price level where mining is no longer profitable, the mining contract should run indefinitely. The payback period for cloud mining contracts, which is dependant on bitcoin price fluctuations, will likely also take around one year.
However, it needs to be said that in recent years buying and holding bitcoin has generally been more profitable than mining bitcoin as an individual, regardless of whether you purchase a cloud mining contract or mine using hardware.
At the end of the day, the decision or mine or not comes down to what type of investor you are. The historical data points to the latter being the better choice but some investors may prefer the regular income option.
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Bitcoin Market Journal brings you hot investment tips from the best minds in bitcoin, altcoins, and ICOs. Straight to your inbox. What is Bitcoin Mining? Hardware Mining vs. Cloud Mining When bitcoin first launched in , users were able to mine bitcoin on their laptops and desktop computers. How Profitable is Bitcoin Mining? Before beginning a mining venture, weigh the cost vs.
Should You Mine Bitcoin in ?