Yes it is profitable to mine Bitcoin ter India.
(update given on Two/Five/2018) Bitcoin difficulty have bot lowered.
Wandering why it is profitable?
Let understand Bitcoin difficulty ter details.
Bitcoin difficulty is an estimate about how difficult it is to mine (find) a fresh bitcoin block. Bitcoin mining has two main purposes. One is adding transactions to the bitcoin block chain. The other purpose is to create fresh bitcoins.
The total number of bitcoins that will everzwijn be mined is limited to 21 million. Moreover, the bitcoin protocol determines a time horizon overheen which the bitcoins will be created. This is done to limit the supply of bitcoins . A fresh block is mined every Ten minutes. The number of bitcoins ter one block is presently BTC 25 and is halved every 210,000 blocks or approximately every four years.
If everybody could lightly mine fresh bitcoins, inflation would be the result. Bitcoin difficulty exists to ensure a limited bitcoin supply. This does not mean there could be no inflation for bitcoin. Activities like bitcoin lending can increase the bitcoin money supply. But the main underlying driver of money supply remains the monetary base which is represented by the number of mined bitcoins. Therefore bitcoin difficulty is significant to maintain the bitcoin purchasing power .
Bitcoin mining gets more difficult with an enhancing computing power te the network. The protocol always makes sure the pre-defined trajectory of bitcoin creation is kept. The computing power is measured te hashes vanaf 2nd. To understand what that means, the process of mining needs to be explained te further detail.
Bitcoin mining overview
When a pc mines bitcoins, it attempts to calculate a hash which is the block’s header. The hash starts with a certain number of zeros. The number of zeros is defined by the target. The target is a 256-bit number and is therefore utterly long. All bitcoin clients know the target.
It gets more difficult to mine bitcoins, the more leading zeros the hash has got. At the same time the rekentuig is more likely to find a block at a given bitcoin difficulty when it has more computing power.
This makes it crucial to optimize mining hardware . At today’s high bitcoin difficulty levels, almost all miners use so called ASICs (application-specific integrated circuits). Thesis are more efficient te their energy consumption and have a higher chance to find a bitcoin block.
Mining is like playing a spel of probabilities
Mining resembles a spel where you roll a dice which comebacks a hash. If the hash starts with a number of zeros that is smaller or equal to the number of zeros spil defined by the target, you have won a bitcoin block. If the number of zeros is larger, you have to roll the dice again.
The more dices are spinned at the same time, i.e. the more computers are mining, the higher is the probability to find a fresh block. The probability also increases if the computing power of a single machine is enlargened. It simply resembles throwing more dices at the same time.
Bitcoin mining pools are the way to go
Since mining difficulty is indeed high today, single miners are very zonderling. Most individuals join their computing power ter so called mining pools .
To make sure that on average a fresh block is created every Ten minutes only, the target needs to be adjusted frequently. This is because every 2nd fresh mining equipments can be added to the network.
Bitcoin difficulty explained
The bitcoin protocol determines the recalculation frequency of the target. This means the protocol also determines the bitcoin difficulty. A fresh recalculation takes place every time the number of Two,016 blocks have bot mined. If the targetted interval of Ten minutes vanaf block wasgoed realized, this takes two weeks. Every bitcoin client does the reacalculation on its own by simply comparing the actual time it took to mine Two,016 blocks with the two weeks it wasgoed supposed to take. The target is modified by the percentage deviation from the targetted time.
Two weeks are the omschrijving of 336 hours. So if for example Two,016 blocks were mined te 13 days instead of 14 days, this is a deviation of 7%.
The concrete value for the bitcoin difficulty is derived from the target.
This means that bitcoin difficulty can also go down should the mining of blocks take longer than Two weeks. Ter December 2014 this actually happened for the very first time. Bitcoin is live since January 2009, so it took fairly a while.
Since the bitcoin difficulty went down te 2014 for the very first time, this didn’t toebijten very often again. Most of the time a decline te bitcoin difficulty is driven by a decreasing bitcoin price. A lower price makes bitcoin mining less profitable. This causes miners to turn their machines off which decreases the hash rate. A lower hash rate means on average it takes longer to mine fresh bitcoin blocks, hence the bitcoin difficulty needs to decrease.
I think you have got the right reaction te details.
This is something of a conversation with a friend, think this might come handy here:
Q: Reasons? Isnt legality a big hindrance. Also power of currency ter supply getting challenged?
A: Just my opinion, I feel that there is a request for anonymous decentralized transactions and it is going to grow te the future. Any legal alternative will defeat the purpose and thus, with developers integrating fresh technologies it seems Bitcoin will keep soaring.
Q: Any idea about mining bitcoin yourself?
A: Yep, anyone can do it, need a high upfront cost to achieve profitability, again with a high risk factor due to volatility
Q: Is the process automated?
A: Mostly yes, needs specialized graphic cards however and domain skill
Q: I agree that the transaction is not traceable hence, the illegal transactions (or hawala) :p would be fairly simpler.
A: Yep, there could be significant barriers that governments could create like the latest geobsedeerd ter China, which will increase the associated risk. Here is nice article I read a few days back covering a few Indian miners : https://factordaily.com/cryptocurrency-bitcoin-ethereum. /
Q: China banned the trading, not the currency however!
A: What will you do with a currency you can’t trade, spil good spil dead
Q: Isnt it like Stamping your own currency through mining.
A:not ter case of bitcoin, the miners just verify transactions on the network and the network ter turn pays them with some coins
Q: pls explain, this is fresh to mij. what i perceived wasgoed that you can samenvatting bitcoins through block chain technology. However the only differentiation ter Bitcoin and other crypto wasgoed that bitcoins are immobilized and limited,
A: you are right that fresh coins are created, but the are the result of transaction verification the limit will never be reached spil it will become more difficult overheen time to mine those coins Here is a good movie
Q: yes the prizes are decreasing.. so extraction opf bitcoin will take more time
A: more investment so to say
Q: yes.. time will convert into cost only
BTW, interesting discussion forum you just commenced
Q: i did not understand this part, transaction verification
A: It took a loterijlot of time for mij to get it spil well, the system is designed such that verification of transactions is done by peers, if you participate ter that verification (this involves solving a cryptic problem needing computing powers), you are rewarded by the network with some coins.
Q: Ok.. so only money will not get mij bitcoins, a programmer can if possible fetch bitcoins spil prizes
A: yes, there is the onmiddellijk way to exchange bitcoin with money + 2nd way of mining it
Cuz i wasgoed contemplating why not mine it yourself..
A: Earlier the system grew like that, but now mining is costly
but it is not the cost, challenge is if any intellect is reqd for mining
A: many people are self-taught miners, I don’s see any barrier ter that direction
A: The mining software is itself loosely available
Q:So if i want to mine, i can mine bitcoins even however im technically handicapped
A: Technically, you can do it but risk and high upfront cost are the obstacles.
Q:Bitcoin is also on the trajectory of a bubble te the future.
A: Once you commence mining you get locked ter, unlike traders who may dessert. Exactly!
It wasgoed nice discussing with you.
A:I should thank you too, got mij thinking on thesis things spil an investment chance
Q: haha.. let mij know if u invest.. im also contemplating
you know that there is an ATM ter India, that does accept Bitcoin
A: not aware of that, only know of BTCX india exchange
Investment for mij will take some time now, all this loan to pay off
Q: hahaha. can understand.. but see an chance for u to pay off quicker
with 5X terugwedstrijd on bitcoins
A: will take some drinks to gather that courage
Bitcoin mining profitability is something that is always te flux. With Bitcoin having such a high difficulty and large total hashrate, at times profitability can come down to several things.
The very first set of gegevens you will want to use for discovering if Bitcoin mining can be profitable for you or not is the following but not limited to:
- cost of Bitcoin ASIC miner(s)
- cost of tens unit to power miner (how much you are charged vanaf kwh)
- cost of equipment to run the miner(s)
- cost of PSU (power supply unit)
- cost of network gear
- cost of internet access
- costs of other supporting gear like shelving, racks, cables, etc.
- cost of building or gegevens center if applicable
- key value of Bitcoin overheen the life of the miner
Taking all of thesis factors into account will give you a rough come back on investment (ROI) date, which is the date by which all the components are paid for by your mining earnings. Several are reoccurring tho’ like tens unit costs, internet access, and building or gegevens center costs if applicable.
Spil noted the key to achieving ROI is the value of Bitcoin, spil wij all know it is has high volatility, sometimes with extreme swings. This can make calculating profitability problematic at times. Your purpose is to mine bitcoin at its current value spil efficiently spil possible. This means buying the most up to date equipment when you are buying it unless you can get some ASIC that is a generation or so back that is cheap enough that still makes more te bitcoin than is costs te electro-therapy. Newest gen Bitcoin ASIC miners are usually more powerful using less power vanaf gh/s.
With the rising difficulty it can also cut into your profits if you are taking less of a share of the block prizes due to rising total hashrate. The difficulty goes up or down based on how swift or slow block times are. Block times are the time it takes for a transaction set to be recorded and the hash created on the blockchain. Bitcoin targets for a
Ten minute block time and will reset harshly every two weeks based on the average time to solve (process) a block. If te the time period more miners are added to the network that permits a block to be solved ter less than
Ten minutes it means that the difficulty will go up to slow the block generation to
Ten minutes. If enough hashrate has left the network and blocks are being solved ter more than
Ten minutes the difficulty will druppel permitting the miners to process blocks te harshly
Ten minute intervals. You will want the hashrate to be fairly stable spil that will keep the amount of bitcoin you receive for mining toughly the same. If the Bitcoin value holds constant or goes up spil well it will help spil well.
http://Bitcoin.com has launched it’s own pool mining operation along with cloud mining contracts with competitive pricing, which you can register for and start mining today . There is also a excellent third-party implement made by Grey Wyvern to estimate the come back on your investment on the Bitcoin Pool based on several variables the user can input which will calculate profitability.
Spil you can see Bitcoin profitability is a moving target so be vigilant te monitoring your costs each month to mining prizes and their value at the time of receiving. Keep an eye on mining pool fees spil some are free and others are not with a percentage or more added into the cost of your mining. The higher Bitcoin’s value goes the longer you can run your mining gear profitably spil long spil the total hashrate does not keep going up spil well causing the difficulty to keep your earnings even or even down spil time goes by.
While running your own mining equipment can be joy and at times profitable it is not always something you can do at huis. Miners generate slew of fever and noise. That needs to be taken into account for where you are going to place your miners. Most cannot be run te the house unless you have a garage, basement or slagroom that can treat the warmth and noise. Ter this case you may want to host your miners te a gegevens center or some other suitable place. If you want to be able to mine without the hassle of the physical miners themselves you can use a cloud mining or hosting service.