Calculation of profitability: Ethereum Mining with graphics processors
The rise of the Ethereum network has brought a new era to cryptocurrency enthusiasts, but also offers the opportunity for those interested in mines to join the supporting group. When the CPU mining became less viable, it was replaced by an alternative mining equipment. One such option is the use of graphics processing units (GPU) from specialized mining equipment.
In this article, we will look at how to calculate the profitability of GPU mining in Ethereum and other cryptocurrency.
Understanding the basics
Initially, it is necessary to understand the basics of cryptocurrency mining. The mining activities include authentication of events on the Blockchain network and adding new transaction blocks to the main book. The process requires significant computational power that is typically provided by specialized equipment such as GPU or application -specific integrated circuits (ASIC).
GPUs are designed for parallel processing, so they are ideal for tasks such as matrix functions and scientific simulations. However, Ethereum’s mining algorithm depends on the work certificate (POW), where miners competed to solve a complex mathematical puzzle to validate events.
Calculation of profitability
To calculate the profitability of GPU mining in Ethereum we need to consider serious factors:
- Mining Difficulties
: The difficulty level determines how often mining workers need to find solutions for a mathematical puzzle. A higher level of difficulty makes mining more profitable.
- Hash speed : This measures the number of calculations per second that GPU or ASIC can perform. The higher Hash interest rate increases profitability.
- Block Prize : The amount of the questionnaire that has been awarded for mining workers in each block is fixed and usually about 6.25 ETH (Ethereum).
- Power consumption : The power effect of the mining device affects profitability. Lower costs can increase profit margins.
By using these factors, we can calculate the mining worker victory per hour or a day using different formulas. Here are some examples:
Example 1: Simple calculation
Suppose the GPU with a hash speed of 100 th/s (tera -hashi per second) and mining difficulty 10^15. The block fee is 6.25 ETH.
Victory per hour = (2^31 – 1) / 4 x (6.25 eth / 1 eth) x 24 hours
= $ 14.17
Victory of the day = $ 14.17 x 365 days
= $ 54.15
Example 2: More complicated calculation
Assume ASIC with a hash speed of 100 th/s and mining difficulty 10^16. The block fee is 6.25 ETH.
Victory per hour = (2^31 – 1) / 4 x (6.25 eth / 1 eth) x 24 hours
= $ 14.17
However, the calculation of profits becomes more complicated as it is considered as additional factors such as energy costs and time spent on maintenance.
Energy Costs
The power consumption of the mining device affects profitability. Assume that average costs are 0.05 kWh per hour to generate electricity for GPU or ASIC. The total cost of the hour would be:
GPU: $ 2.31
ASIC: $ 7.45
Time spent for service
A more realistic scenario was looked at from the time spent on maintenance, which can range from serious feelings to several days, depending on the complexity of the mining regulation.
Assuming that the average maintenance time is 24 hours per month (conservative estimate), we can several with a factor of 12 to consider the annual costs:
GPU: $ 2.31 x 0.25 = $ 0.58
ASIC: $ 7.45 x 0.33 = $ 2.44
conclusion
To calculate the profitability of GPU’s profitability in Ethereum means consideration of many factors such as mining difficulties, hash value, blocking fee and energy costs. Using different formulas and taking into account extra costs, such as maintenance time, we can achieve a more realistic assessment of the mining worker’s profit.
