Bitcoin mining calculator
The Invezz Bitcoin mining calculator figures out the cost of mining Bitcoin based on all relevant variables, including the electricity costs and efficiency of your hardware. Keep reading to learn how our Bitcoin mining calculator works, and how you can use that knowledge to evaluate whether or not that Bitcoin mining operation will make a profit.
How to use our Bitcoin mining calculator
Using our Bitcoin mining calculator is a simple process. Just follow these steps:
- Enter in the hashing power (the speed at which your crypto mining device operates). This is expressed in either TeraHASHes per second (TH/s), GigaHASHes per second (GH/s), MegaHASHes per second (MH/s), KiloHASHes per second (KH/s), or HASHes per second (H/s).
- Enter in the power consumption (expressed in watts).
- Enter in the cost of your power (expressed in cost per kilowatt hour, or KW/h).
- Enter in your pool fee, which is the fee that miners typically pay to share their processing power over a single, large network, thereby saving money. The pool fee is expressed as a percentage.
- Click calculate to determine your profit (or loss) per day, week, month, and year.
How the Bitcoin mining calculator works
The Invezz Bitcoin mining calculator tool tells you how efficient a mining operation is, and therefore whether or not it’s profitable (and if so, how profitable). It does this by calculating the cost of mining Bitcoin based on different variables, compares those costs to the current price of Bitcoin, then determines your expected level of profit or loss.
Why should I use it?
Only 21 million Bitcoin can ever be mined, and there are currently about 18.5 million Bitcoin in existence. With Bitcoin’s supply thus getting smaller by the way and the cost of Bitcoin rising fast, Bitcoin mining has gone from a cash cow business for many different people to a labor- and electricity-intensive process most suitable for only the most efficient mining operations.
If you’re trying to mine Bitcoin you need to know how efficient your operation is, because if your costs are greater than your revenue, you’re going to lose more and more money.
What is Bitcoin mining?
Bitcoin is the world’s most famous cryptocurrency, and Bitcoin mining is what makes the system work. Bitcoin is generated by Bitcoin “miners” who process and secure new coins using blocks of data on a decentralised digital ledger called a blockchain. Essentially Bitcoin mining is the process by which Bitcoin transactions are verified, with those who are carrying out the work being rewarded in Bitcoin.
In the early days of Bitcoin, you could set up a mining operation with something as simple as a laptop. Nowadays there is strong competition and you need to invest in specialised hardware if you’re going to stand any chance of making a profit.