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At current difficulty rates, what is the profitability formula for cost of electricity versus hashrate? example: if you aren't getting X Mh/s @ $Y kw/h, it isn

At current difficulty rates, what is the profitability formula for cost of electricity versus hashrate? example: if you aren't getting X Mh/s @ $Y kw/h, it isn't profitable?

y3k 7y ago
I'm not "smart enough" to calculate that acurately, but if the "cost per transaction" is high enough to get a couple of articles written about it, I won't participate into that. I'm more worried about humanity having a future.
iopq 7y ago
Depends on the hardware, mining difficulty, block reward. Right now? Something like 0.15 per kw/h is the break-even point, and if you're not getting below 0.10 you won't get the cost of your hardware back fast enough In other words, you should mine if you're in China where you can get those rates
- paulmd 7y ago
  to add: china often pays zero, because they're bribing local officials to ignore their bitcoin farms
  - celticninja 7y ago
    Pays zero what? They have to buy the hardware so I assume you mean electricity, pretty sure bribing allows them to operate, it doesn't cover electricity costs.
    - paulmd 7y ago
      pays zero electricity costs, yes. A couple grand a year can buy you all the electricity you want. tens or hundreds or of grand per year, or millions. A couple grand is a lot in terms of China salaries. https://www.theguardian.com/world/2019/jul/12/chinese-police-crack-down-on-bitcoin-miners-over-3m-of-stolen-electricity https://www.theguardian.com/world/2019/jul/12/chinese-police... http://www.scmp.com/news/china/society/article/2143758/chinese-household-caught-stealing-electricity-power-its-home http://www.scmp.com/news/china/society/article/2143758/chine... https://www.ccn.com/chinese-police-seize-600-bitcoin-mining-computers-over-electricity-theft/ https://www.ccn.com/chinese-police-seize-600-bitcoin-mining-... http://www.scmp.com/news/china/society/article/2108486/four-accused-stealing-power-chinese-oil-company-generate-bitcoins http://www.scmp.com/news/china/society/article/2108486/four-... https://kyc360.com/article/bitcoin-causes-electricity-crisis-parts-china-fresh-crackdown-looms/ https://kyc360.com/article/bitcoin-causes-electricity-crisis... you'll never find a systematic article on it, but these aren't the first or the last incidents. they also pay much lower hardware costs than the US does, because it all happens off the books. Chinese mining farms with internal hardware/super cheap power are nothing new. china doesn't and never has played fairly in terms of hardware or power costs. crypto as a whole has been embraced because it's a good system to move value past chinese capital controls, you just are getting your beak wet as that money moves. just like those 2 million dollar houses in vancouver or whatever. Sure, it's great to be trading in that current, or providing property management services, or to be holding the asset as it's pumped up by that money moving under the chinese capital controls!
wmf 7y ago
There are various calculators that can do this for you and you can easily try different scenarios. https://btc.com/tools/mining-calculator https://btc.com/tools/mining-calculator https://www.nicehash.com/profitability-calculator/bitmain-antminer-s17-pro-50th https://www.nicehash.com/profitability-calculator/bitmain-an...

At current difficulty rates, what is the profitability formula for cost of electricity versus hashrate? example: if you aren't getting X Mh/s @ $Y kw/h, it isn't profitable?

y3k 7y ago

I'm not "smart enough" to calculate that acurately, but if the "cost per transaction" is high enough to get a couple of articles written about it, I won't participate into that. I'm more worried about humanity having a future.

iopq 7y ago

Depends on the hardware, mining difficulty, block reward. Right now? Something like 0.15 per kw/h is the break-even point, and if you're not getting below 0.10 you won't get the cost of your hardware back fast enough In other words, you should mine if you're in China where you can get those rates

paulmd 7y ago
to add: china often pays zero, because they're bribing local officials to ignore their bitcoin farms
- celticninja 7y ago
  Pays zero what? They have to buy the hardware so I assume you mean electricity, pretty sure bribing allows them to operate, it doesn't cover electricity costs.
  - paulmd 7y ago
    pays zero electricity costs, yes. A couple grand a year can buy you all the electricity you want. tens or hundreds or of grand per year, or millions. A couple grand is a lot in terms of China salaries. https://www.theguardian.com/world/2019/jul/12/chinese-police-crack-down-on-bitcoin-miners-over-3m-of-stolen-electricity https://www.theguardian.com/world/2019/jul/12/chinese-police... http://www.scmp.com/news/china/society/article/2143758/chinese-household-caught-stealing-electricity-power-its-home http://www.scmp.com/news/china/society/article/2143758/chine... https://www.ccn.com/chinese-police-seize-600-bitcoin-mining-computers-over-electricity-theft/ https://www.ccn.com/chinese-police-seize-600-bitcoin-mining-... http://www.scmp.com/news/china/society/article/2108486/four-accused-stealing-power-chinese-oil-company-generate-bitcoins http://www.scmp.com/news/china/society/article/2108486/four-... https://kyc360.com/article/bitcoin-causes-electricity-crisis-parts-china-fresh-crackdown-looms/ https://kyc360.com/article/bitcoin-causes-electricity-crisis... you'll never find a systematic article on it, but these aren't the first or the last incidents. they also pay much lower hardware costs than the US does, because it all happens off the books. Chinese mining farms with internal hardware/super cheap power are nothing new. china doesn't and never has played fairly in terms of hardware or power costs. crypto as a whole has been embraced because it's a good system to move value past chinese capital controls, you just are getting your beak wet as that money moves. just like those 2 million dollar houses in vancouver or whatever. Sure, it's great to be trading in that current, or providing property management services, or to be holding the asset as it's pumped up by that money moving under the chinese capital controls!

wmf 7y ago

There are various calculators that can do this for you and you can easily try different scenarios. https://btc.com/tools/mining-calculator https://btc.com/tools/mining-calculator https://www.nicehash.com/profitability-calculator/bitmain-antminer-s17-pro-50th https://www.nicehash.com/profitability-calculator/bitmain-an...