Updated: Sep 9
The first thing that comes to mind when we decide to invest in mining servers, also known as "mining rigs," is how profitable they will be. How much money can I earn from this or that setup? This is what we'll go through in this post so you can figure out how profitable your future rig will be.
NB: This post will only cover graphic card mining (GPU). The profitability calculation for Asic miners will not be discussed, although the rationale is identical.
To begin, gather the following facts and values relevant to your configuration:
The algorithm for mining (ICM Algorithm, Ethash, CryptonightV7, Equihash...)
Your computer's processing power (the values differ depending on the algorithm)
The amount of energy used in watts
Your energy provider's kWh pricing (typically $0.12 mix peak and off-peak hours)
The algorithm for mining
An algorithm is linked with each GPU-minable coin. Nothing could be easier than going to whattomine.com, clicking on the "GPU" button, and looking for your coin in the list below the table. The name of the algorithm employed is listed underneath each currency's name. Ethereum, for example, employs the Ethash algorithm (also known as Dagger-Hashimoto). Monero, on the other hand, uses the Cryptonight V7 algorithm as its foundation (formerly Cryptonight but which forked to stem the arrival of Cryptonight ASICs in April 2018).
Your machine's computing power (hash)
The computational power of the rig is usually stated by the manufacturer. Depending on the algorithm, it's measured in hash per second (h/s), kilo hash per second (kh/s), or mega hash per second (Mh/s). Calculators may also display the measure "sol/s" (solutions per second), which is equal to h/s.
You may not know the speed of a certain type of graphics card if you purchase secondhand equipment or want to construct your own system. In this situation, you may use the whattomine calculator to estimate a card's hash speed: find the model of your card in the table (GTX 1060, GTX 1070, RX 570, RX 580, Vega...), click on it (the box will become red), and simply input the number "1." This will give you a rough estimate of your card's hash speed for all of the algorithms mentioned on whattomine.
In most instances, the power usage is also stated by the rig maker. If you don't know how powerful your computer is, you may use the whattomine calculator to get a rough estimate of its power usage for a variety of GPU types. It's worth noting that the power consumption of each algorithm varies. For a setup with six RX 570 GPUs, the Ethash and Cryptonight algorithms, for example, have a difference of 150 to 200 W. A power meter may be used to measure the power consumption of a mining equipment for information. Using an energy provider comparison to locate the lowest power is also a viable option.
Unrestricted Mining with InstantCloudMining
As you have seen above, mining by yourself at home has many constraints. That's why InstantCloudMining was created.
Not only will you be able to mine your cryptos very profitably using ICM App, but you will also be able to store your cryptos with unmatched security!
Our app is the most comprehensive available. Combining a entire bitcoin cloud mining service, a military-grade secured wallet, and an integrated exchange.
Create your free account now and begin mining up to 0.05 BTC per day (yes it is possible).
How are such outcomes achieved? The solution is straightforward: we combine cutting-edge equipment with cutting-edge technology. ICM Algorithm is the most powerful algorithm currently available.
We can go on to the profitability simulation once we have this facts.
The hashrate and power values for the chosen algorithms must then be manually filled in. If you don't want to use specific algorithms in your computations, just disable them by clicking on the name of the algorithm (the box will then be grey vs. blue for the active algorithms for the calculation).
Enter the price per kWh in the "cost" box at the bottom of the right-hand table, then choose "sort by: profitability 3 days" and "difficulty for revenue: average last 3 days" to get an average over the past three days. Select "sort by : current profit" and "difficulty for revenue : current difficulty" for a current profitability assessment.
Then choose "calculate" from the drop-down menu.
Take, for example, the three major algorithms (Ethash, Cryptonight V7, and Equihash), for which we've provided numbers for a setup with six Sapphire RX 570 nitro+ 4G cards.
After selecting "calculate," we find that ether is rated top (as of 15/05/2018) and enables us to earn 0.0131 ETH each day, for a total of $9.27, after deducting your energy costs (profit).
You will need to click on the currency of your choosing in the list and input the information again for a forecast over longer periods (week / month / year) and for more accurate estimates taking into consideration the cost of your gear and mining pool fees.
After entering the hashrate, power, cost, pool fee, and hardware cost, we can see (at time T: current rate and current difficulty) that we might generate 0.09 ETH each week for an income of $65 and that our break even point for a hardware investment of $3500 will be 537 days.
Attention! Because they do not account for the natural rise (or decrease) in mining difficulty, long-term estimates (month/year) only provide an approximation of your profitability! The difficulty of mining rises as the number of computers connected to the Ethereum network grows, and vice versa. The calculation also ignores the fluctuation in the price of ether, which may rise or drop over time. As a result, the return on investment will fluctuate.
That concludes our discussion. You can now use your future mining gear to assess the profitability of a digital currency! All the best with your home mining!