Date: 6 months ago   Category: Economy

Opinion: Profitability of a mining - the myth or reality?


Many analysts at forecasts of the course bitcoin and other cryptocurrencies use such term as profitability. We will try to understand, what is it and how strongly influences the price of cryptocurrencies.

Many analysts at forecasts of the course bitcoin and other cryptocurrencies use such term as profitability. We will try to understand, what is it and how strongly influences the price of cryptocurrencies. Wikipedia prompts

to us that Profitability is a relative indicator of economic efficiency. Economic efficiency, in turn, this relation of the received results to expenses.

How to count "profitability" of a mining?

We will review an example of bitcoin though the scheme will remain to the same for all in the slightest degree the widespread cryptocurrencies using PoW (that is a mining).

is Very conditional, for a mining it is required to us: the device which will make calculation of hashes (for bitcoin ASIC have driven all other decisions out of the market). The Internet - but the traffic created at a mining so scanty that he can be not considered is required. And here the electric power is required to us. Also it is required her much. If with physical wear at electronics everything is very good

, then here with moral obsolescence - everything is sad. Constantly there are new chips for a mining, producers compete in improvement of technologies and each new generation of ASIC if doesn't dump predecessors, then strongly reduces their efficiency. And it, in turn, to force any who has decided to become a successful mayner, sooner or later to change the equipment. in general the main expenses we have defined

- it is the equipment and the electric power. And if with the equipment everything is clear, then how to calculate quantity of the electric power?

A here also begins the most interesting. Most likely, profitability of a mining with which analysts operate is "temperature, average on hospital" - that is the general хешрейт has been taken network which can be calculated, proceeding from the current complexity, the average power of modern ASIC is taken, and calculation proceeding from their energy consumption is executed.

Voila! Also it is possible to say that "profitability of a mining makes not less than 3000 US dollars for bitcoin".

Only as Raikin spoke: "In principle you are right. But in essence you are deeply mistaken". And now we will consider why.

Such calculation doesn't consider one of the main properties of a mining, per se.

A nominal "the winner receives everything".

That is a mayner or a pool of mayner who have signed the block receive all award entirely. And already among themselves distribute her "according to the bought tickets". Also there is no guarantee that having ASIC with defined heshreyty, you will be among lucky. And here you will burn the electric power anyway. And the means spent for the equipment - too. Also it turns out that "on average" has already distorted the calculations given above. we Will assume

statistically that on rather long interval of time your pool in

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