Since 2016 - 2017 mining has developed as a stable and rapidly growing industry, bringing income regardless of the volatility of fiat and cryptocurrency assets. When one starts creating a realistic financial ROI model of return on investment in equipment, they need to take into account many factors. For any miner the electricity costs, the price on asics and accessories are of great importance.
For initial profitability calculations, online calculators that automatically calculate the profitability of equipment models are sufficient.
Here there are for you the basic definitions needed to calculate the profitability of mining bitcoin and other currencies:
Hashrate is the number of hashes per second computed by a mining device (a GPU farm or an asic-miner). Hashrate demonstrates the efficiency and performance of cryptocurrency mining devices. It is measured in hashes per second (H/s).
A miner - or an asic, or an asic miner - is a device specifically designed to mine cryptocurrencies (also a video card, an ASIC miner, a CPU processor).
Mining complexity is a value that depends on the complexity of the network. The complexity increases with the arrival of new players.
Payback period is a period of time when the profit will exceed the cost of equipment and monthly payments for electricity, hosting, maintenance and repair of equipment. Estimated payback period of mining equipment depends very much on the rate of cryptocurrencies, as well as on the entry point - whether the equipment was bought at the time of a bear market, when the price of acics/video cards/GPU farms was minimal, or at the time when bitcoin and other cryptocurrencies were growing rapidly and, consequently, at a high price of equipment.
Hardware energy efficiency – energy consumption divided by hash rate. Example: Whatsminer M21S 3300/56 has 58 W/T energy efficiency. The lower this value is, the more efficient the equipment is.
To calculate profitability, you can use one of the following calculators:
1. What To Mine: A handy calculator for calculating the profitability of equipment, which most miners love.
2. Cryptocompare: Online calculator that we can recommend as one of the most convenient for calculations.
3. NiceHash: Easy to use and quite accurate calculator for calculations.