What is digital currency extraction or mining?
Mining is the process of creating a block of transactions that must be added to the blockchain. Miners use their time and computing power to process transactions and generate blocks, and receive rewards for approved blocks.
Bitcoin Mining (BTC)
The Bitcoin mining process involves a series of complex mathematical calculations that are used to verify transactions. These calculations require a lot of computing power that has evolved. In principle, a simple computer can do the extraction without any problems, but today special equipment is required to do so. This is because the difficulty of bitcoin mining has increased dramatically since its inception.
Due to the complexity of the work, miners receive the cost of validating and creating each block. Depending on the amount of work provided, this form will be delivered in bitcoin. Bitcoin mining can be very profitable for miners depending on the current hash rate and bitcoin price. When transactions are distributed across the network, they are collected by miners and packaged in blocks, which in turn are protected by complex cryptographic calculations. Successfully added to the blockchain to receive rewards.
Factors affecting the revenue of cryptocurrencies
Several important factors in mining profitability are:
- Appropriate hardware: Miners must have the latest hardware to compete and succeed in mining. Equipment can become obsolete within a few years.
- Electricity costs: It is essential that a miner can use electricity at the lowest possible cost.
- Digital currency price: The price of the desired currency is very important in extraction. Because miners receive a certain amount of digital currency when solving math problems correctly. If the value of the currency is low, it may not be cost-effective to extract.
- Network Hardness: Network difficulty is a measure of how to extract a block of cryptocurrencies, or more technically, to find a target. The high difficulty of the network means that extracting the same number of blocks requires more computing power and makes the network more secure against attacks.
- Hash rate: The hash rate is a unit of measurement of the processing power of the blockchain network. The network must perform intensive mathematical operations for security purposes. When the network reaches a hash rate of 10 Th / s, it means that it can perform 10 trillion calculations per second. In other words, a hash rate is the total computational power used to extract and process transactions in the proof-of-work blockchain. The hash rate is often used as a measure of network health in proof-of-work cryptocurrencies. The higher the hash rate, the 51% more difficult it is to successfully attack. But increasing hash rate over time can also indicate an increase in mining interest. Conversely, reducing the hash rate causes miners to leave the network. Because network security is no longer profitable for them.
Digital Currency Mining Calculator
To make the most of your mining equipment, as well as have a better estimate of mining revenue, you need to explore the potential of your mining machine and not go into the process blindly. Hence the use of digital currency mining calculators is essential.
To work with the bombe's Bitcoin mining calculator, consider the following:
- Hashing Power: Enter the hash rate of the extractor in the TH / S unit.
- Power Consumption: Enter the amount of energy and electricity that your mining hardware consumes per watt unit.
- Cost per kilowatt-hour: Enter your electricity tariff (household, industrial, etc.) in kilowatt-hours.
- Pool fee: Enter the amount of fee the pool receives from you in percentage points.