These days, digital currency has become a hot topic. Wherever you follow the media, one of the most important topics is digital currency, bitcoin and miner. Many people want to know what the price of a miner is or what they earn by buying a miner. In this topic we are going to speak about these subjects. Follow us.
What is a Miner?
Before we talk about the price of a miner, it is necessary to provide a definition of a miner. What is a Miner and what exactly it does?
Miners are devices with high processing power that solve puzzles in order to add a block to a blockchain. In fact, miners solve complex mathematical equations and are eventually rewarded after a block is released.
Factors affecting the price of miner
In general, any device that has a shorter payback time is more in demand and will naturally have a higher price.
But the factors that can affect the price of the miner are as following:
– Processing power or hash rate of the device
The hash rate indicates the processing power of the extraction devices, and the higher it is, the higher the power of the device. In other word, this processing power means how much the extraction machine can help the network process the blocks.
So the higher this processing power or hash rate, the more computing power the machine has and the more digital currency it can extract at a given time.
– Electricity consumption
Power consumption along with hash rate is the most important variable that has a direct impact on mining profitability, return on investment and consequently price of miners. In countries with high electricity tariffs, high-consumption (relative to power) mining devices are very cheap.
– Network status and price
Difficulty is a variable in bitcoins and some digital currencies that, as network processing power increases, also increases the difficulty and makes extraction more difficult.
When the difficulty of extraction increases and the price of extracted digital currency (such as the price of bitcoin) does not increase relative to it, the profitability of mining devices decreases and as a result the price of miners also decreases.
With the advent of new mining machines, the processing power of the network increases and the hardness increases too, as a result of which, after a while, the profitability of the old mining machines disappears and their prices fall.
– Weight and size
The small and compactness as well as the lightness of the extraction devices are considered as an advantage and affect the price of miners. The weight and size of the devices that are widely used are almost the same.
– Company and manufacturer brand
Surely, when you buy a laptop or phone, one of the most important issues that you pay attention to is the brand of that product. Some products are priced higher simply because the brand and factory that produced them have a brilliant track record in that area.
This statement is also true when it comes to the miners, the company produced it is very important. Among the most famous companies that currently produce mining machines are Bitmain, the manufacturer of Antminer miners, and MicroBT, the manufacturer of Whatsminer miners. The prices of miners of these two companies are higher than those of other companies.
How Much Money Does a Miner Make?
It is interesting to note that the bitcoin mining bonus is halved every four years. The first bitcoin was mined in 2009, and miners earned 50 BTC by mining a block. This amount was reduced to 25 BTC per block in 2012. Then by 2016 it reached 12.5 BTC and on May 11, 2020 it reached 6.25 BTC. The price of Bitcoin in November 2020 was about $ 17,900 per bitcoin. This means that by completing one block, you will get $ 111,875. But in any case, the price of bitcoin has changed a lot.
Also keep in mind that miners have to pay for expensive equipment – to increase their chances of resolving the hash problem. In addition, they require a significant amount of electricity. This is why many people say that bitcoin mining is not very beneficial for most miners. Some sites offer a useful calculator in this regard. This calculator allows you to specify numbers such as hash speed and your electricity bill to estimate costs and final profit. But as the value of bitcoin grows day by day, sometimes this extraction will have many benefits. According to the Kevin Telegraph, miners earn $ 4 million an hour.
Is cryptocurrency mining profitable?
To answer this question, you should know that cryptocurrency mining has many variables. So for many people, buying bitcoin and cryptocurrency may be a safer way.
One of the mining variables is the price of cryptocurrencies. If you need to pay for electricity and expensive hardware for cryptocurrency mining, you need to extract enough bitcoins to cover the costs and make enough money in addition to returning the initial investment like the price of a miner.
There are generally three variables that can affect the profitability of miners.
Cheap electricity, low cost hardware and a good mining pool.
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Efficient hardware
As mentioned before, the price of miners varies with different brands and has more to do with the amount of energy consumption as well as its hash rate. Because the higher the hash rate of miners, the more bitcoin mining will be. In addition, the less energy miners consume, the lower your costs will be.
Experience has shown that if the price of each bitcoin is between $ 5,000 and $ 6,000, most modern miners can be profitable.
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Cheap electricity
As you know, the price of electricity varies from country to country. Because countries have different policies towards the cryptocurrencies mining. For example, the cost of a mining farm in Russia is half the cost you have to pay in Europe.
For example, with the price of home electricity in the United States, it is never economical to cryptocurrencies mining, and you will suffer losses from the beginning.
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Reliable mining pool
It is quite clear that every miner needs a mining pool. It is important to choose the right mining pool. The mining pool must be reliable and provide appropriate facilities and services to optimize mining operations.