What is bitcoin mining? Many new crypto users think it’s too complicated to understand. But in reality, it can be very simple to answer:
Mining is buying bitcoin at a discounted price every day.
You buy a miner and start mining, then 2 things repeat:
- Pay electricity bill.
- Get daily mining payout in bitcoin.
As you can see in the process, you are buying bitcoin daily payout with your electricity bill.
There are two basic facts you need to know before you calculate your profit.
- The same hashrate unit mines the same mining payout across bitcoin network, but the number of bitcoin mined every day varies because of total hashrate increase. Right now 1TH/s(Equals 1000GH/s) can mine 0.00001833 BTC ($0.138) everyday. For realtime data see poolin.com
- Different miners have different efficiency, the newer and better miners cost less electricity per hashrate unit. (See the Fee/Revenue Ratio below)
As you can see in the chart, Antminer T17 electricity fee is 57% of daily bitcoin payout, which means you are buying bitcoin at a 43% off discount every day if you own Antminer T17 hashrate.
Now, you may ask if it’s so simple, why didn’t anyone tell you that before?
Because on other platforms, they don’t sell you hashrate or miner ownership, they only sell “contract”, which means you only rent it, cannot resell to cover initial capital, so you have to cover all your cost on hashrate with mining profit, for more detailed explanation, click the article here
Only on veryhash.com, you own the hashrate you pay for and you can resell it after mining to cover initial capital, and because hashrate&miner price change with bitcoin price, you can profit from trading hashrate too!
Now you are already an expert because you have mastered the most profitable model in bitcoin mining, that is
- Buy hashrate of the newer model.
- Get discounted bitcoin with electricity fee every day.
- Sell hashrate when bitcoin price rises to high point and exit.
Happy mining and trading on VeryHash