Why Bitcoin mining is so important and How Much Does It Cost To Mine 1 Bitcoin? I’m going to tell you exactly how much it costs to mine one whole Bitcoin before I start calculating. Firstly I will be able to allow you to understand what’s bitcoin mining? Bitcoin mining is finished to remain current bitcoin exchanges in blocks, that square measure is then added to a blockchain or the record of past exchanges. Bitcoin excavators use programming to handle exchange-related calculations that check bitcoin exchanges. As result, diggers are granted a particular variety of bitcoin per block.
How Much Does It Cost To Mine 1 Bitcoin?
Let’s talk about prices around the world on how much it costs to pay for electricity per kilowatt-hours. And India is the lowest and this is from 2017 other numbers might be more accurate and the best way to know is actually to call your local power company and ask them how much you’re going to pay. But in the US California is actually 20 cents per kilowatt but the US average shows here 21 cents. Now in India is the lowest at 8 cents and in Germany is the highest at 33 cents. We can use this variety to calculate what proportion of cash it prices to mine one Bitcoin.
It uses more power to mine one Bitcoin really. Now we can calculate approximately how much it’s kind of costs to a mine one whole Bitcoin and how long it’s going to take we’re going to use the antimony s9 as a comparison for the mining for today. There are other machines out there that mined more or less power so that also changed a lot on how much you know how long it’s going to take and how much you’re going to face per coin. But let’s talk about s9 with 14 10 hashes hashing power so the consumption that I checked you know from the wall is a thousand four hundred watts.
It might be lower if you’re using 220 volts. Some people use 110 volts so they do pay more. Because it’s less efficient let’s start to look at eight cents per kilowatt for India. So because it’s the lowest in India we pay eight cents per kilowatt hours remaining 1/3 of a Bitcoin every year with the s9. So basically let’s calculate how much we’re going to pay per year it’s 981 dollars a year just Felicity’s price to mine one-third of a Bitcoin. So if you take that number and calculate times three I’m going to mine one whole Bitcoin. It’s going to cost us two thousand nine hundred and forty-three dollars.
Now it will take three years bit compressed for now is about eight thousand dollars. If the price stays the same and the difficulty stays the same which is you know very unlikely. You’re going to make about five thousand dollars mining with one of those machines. Now don’t forget there’s also the initial cost to run a mining rig and you have to buy the antimony s9 which is about a thousand something dollars and the power supply. So I calculate about one thousand six hundred dollars to buy that machine. So first you have to buy it and then for three years and only then you will see one Bitcoin.
Now there are some other things you have to consider like difficulty and also the internet. You have to pay intended for the internet every single month. You have to put it somewhere those things are configured you know really depends on you. If you already have it in a connection if you already have a space for it those things might be a little cheaper for you now. I actually have an s9 running right now and I pay about 20 cents per kilowatt-hour. So as you can see I pay a lot more for electricity I pay two thousand four hundred fifty-two dollars per year for electricity. So if I calculate that times three it’s seven thousand three hundred fifty-six dollars per year for me to mine one Bitcoin.
I pay 20 cents per kilowatt-hour and it will take me three years to mine 100 Bitcoin and it will cost me two thousand four hundred dollars per year to mine it. So total I will be going to spend seven thousand three hundred dollars in three years to mine one whole Bitcoin. Now that’s a very small profit as you can see here and the reason why actually makes a little bit of profit every month is that the price of electricity is actually a little less than what I’m going to pay for a coin. So it really depends if I am going to exchange it for cash or not if I am going to exchange it right away.
Every single day then yes you’re going to make you know a few cents per day profit or $20 a month profit. So this calculation really going to help you find the right now. If we take the highest price that people pay for existing with 33 cents you can see that’s even not preferable and it will cost over $12,000 to mine one whole Bitcoin so all you know is you need to take all those into consideration.
And also the difficulty rates to really see if it’s really worth it for you to mine bitcoins and I think it’s really important to inform people with this information. Before letting them start mining it’s definitely profitable if you do it right. If you pay low electricity prices if you already had to pay for Internet and if you have an easy way to find an S9 for a low price all those three might then you are able to make some profit.