How to calculate Bitcoin mining and convert power for the rigs? In order to find out how profitable your Bitcoin mining venture is, you will need to use a proper Bitcoin mining calculator that will provide accurate results.
This will help you to know whether the returns you are getting are as expected or do you need to make any changes here and there.
However, this is not as simple as using any ordinary calculator for calculating simple mathematical results.
You will need to know how exactly you should use a Bitcoin mining calculator in the first place and then convert the power for the rigs according to the results.
You will need to ensure that you figure out accurately how exactly you should stay profitable when you consider mining Bitcoin and whether or not it is the right thing for you to do in the first place.
This is very important in this aspect because Bitcoin mining, as it is, is extremely competitive. If you want to earn more passive income via Bitcoin mining it will only be possible when you play all your cards right.
This is where the Bitcoin mining calculator will come into play.
When you input the various parameters correctly, the calculator will even let you know how long it would take for your investment to pay you back in profits.
If you are not aware of these things, you do not need to fret because you are in the right place.
This article will let you know about it all including the reasons to use this calculator as well as the details you need to feed in and compute the accurate results.
Contents
How to Calculate Bitcoin Mining and Convert Power for the Rigs?
Bitcoin mining is very rewarding but is also very competitive at the same time.
Ideally, when you mine Bitcoin and want to make profits you will need to make sure that you use cheap electricity for the purpose.
Apart from that, you will also need to use one of the most efficient miners available and you can afford and also join a mining pool preferably.
Most importantly, you will need to have patience to see the profits. Remember, it is a long term approach.
Now, the question is: how long would you wait to see the profits knowing that patience does have some limits.
Well, for that you will need to use one of the several tools available now which will help you to make a more informed decision.
This will also ensure that you not only invest in proper hardware but also combine your hashing or computing power with other miners.
This will significantly increase your odds of churning more profits from Bitcoin mining.
This is a very important and productive approach because millions of computers are engaged in mining Bitcoin at the same time and are spread all over the world.
And, these computers have varied levels of computing power.
With such diverse capabilities, all of these computers race against time and other miners when the crypto coin is traded to be the first one to complete a computation and win the reward for the effort and computational power spent for it.
Every transaction that needs to be verified and confirmed before being added to the blockchain creates a 64 digit hexadecimal number.
This particular number is then included in the blockchain or the public ledger for everyone to see and confirm or verify the transaction and whoever does first gets the reward.
If you fall behind every time, you will not be able to make any profits from mining Bitcoin, and even if you are successful in being the first one to win the reward, the total amount earned may not be enough to cover your investment.
In such situations, putting in huge amounts of computing power or hash rate may not be feasible, which is why you will need to use the Bitcoin calculator.
Nowadays, the Graphics Processing cards or GPUs are quite powerful and come with advanced features and functionalities and need to run 24 hours a day and 7 days a week, with no off-days, even on holidays.
This is because the crypto market, unlike other stock markets, does not close.
Therefore, it is essential for you to know how much power your rig has at any given point of time.
In order to have a solid understanding about the power in your rig and be successful in your crypto mining operation you will need to ensure that the power costs do not become exorbitant as an overhead.
For that matter you will need to calculate and convert the power for the crypto miners so that you come to know about the monthly costs of Bitcoin mining and calculate your profits.
Now, to use a Bitcoin mining calculator you will need to know every aspect of it first.
However, the good thing about it is that these are developed by the miners and for the miners keeping the usability aspect in mind while creation.
Therefore, if you are using the latest versions of these Bitcoin mining calculators, you will find that it is very simple and easy to use to calculate your Bitcoin mining profits quickly.
All you have to do is adjust the values of the mining hash rates.
This will provide you with the mining information of the current block and the Bitcoin mining information will be updated continuously.
You can use this information in the Bitcoin mining calculator as default input along with the wattage specifications and the default hash rate of the miner as well.
This will allow you to know the profitability in Bitcoin mining.
Reasons to Use
As said earlier, using a Bitcoin mining calculator is perhaps the simplest and easiest way to know how much profit you are making from Bitcoin mining.
Apart from that, there are several other good reasons to use this calculator.
You will find it very easy to make the necessary changes in your mining strategies and even set up the right hardware to solve complex math puzzles easily and quickly, and receive Bitcoin in return, when you know the profit you can make from it.
You will be able to decide whether the power of your home computer will be enough to solve the math problems which have now become even more complicated.
More often than not, you will find that an upgrade is required because a lot of people are mining Bitcoin almost on an industrial scale.
This makes things much more difficult for the small-time miners who face tough competition from them.
This means that without using specialized and high power mining equipment you will find it extremely difficult to mine Bitcoin profitably today.
As a result, using such a calculator is always a good idea to set your profit targets and see whether or not you are able to achieve them.
The Bitcoin mining calculator will provide you with the correct answer.
Pre-entered Details
There is a wide array of Bitcoin mining calculators available online for you to use.
Depending on the type of calculator you use, the features and functionalities of each may differ.
However, most of these calculators come with a few pre-filled sections and information. These are, however, updated regularly.
These include:
- The current price of Bitcoin, which if higher indicates that mining is more profitable
- The block reward offered, which is 6.25 as of now and halved typically in about every four years and
- The mining difficulty which keeps the inflation aspect in control especially when more and more miners take part in the network.
All such pre-filled information will make using the Bitcoin calculator even simpler for you.
There may be a few specific types of Bitcoin mining calculators that may also allow you to make changes to the specific values that are pre-entered such as the Bitcoin current price.
At this point, it is very useful for you to know that the price of Bitcoin may fluctuate wildly just as the mining difficulty may change quickly.
Therefore, it is essential for you to stay up to date with your calculation results and do not have to make your assumptions based on the previous results.
Similarly, the cost of electricity may also change off and on and for that you will need to make fresh calculations.
With this feature you will be able to simulate the potential scenarios of the future as well.
Also, depending on the type of Bitcoin mining calculator you use, the upfront cost of your equipment may not be required to feed in.
This may be good or bad for you depending on your perspective but it is good to know that these costs can be pretty high.
This is because the cost will depend utterly on the type of the mining equipment you are using.
For example, if you are using several ASIC or Application Specific Integrated Circuit miners, it will cost you thousands of dollars to set them up.
Add to that, you will also need to invest quite a lot of money in cooling fans because these miners generate a lot of heat which may eventually affect the efficiency of the mining rig.
This will also add to the cost of electricity.
With all these costs taken into account while making your calculation, it may take anywhere from a couple of months to a few years to break even on the initial investment depending on the current price of Bitcoin.
Details to Enter
In addition to the pre-filled details in the Bitcoin mining calculator you will need to enter some other details as well.
Once again, depending on the type of Bitcoin mining calculator you choose to use, the parameters to enter may vary and there are several parameters to enter, mind you.
The more details you provide the more accurate results the calculator will provide.
The most common types of parameters to enter into the mining calculator are as follows:
You can use a CPU, GPU or an ASIC miner according to your need and affordability.
It is required that you enter the upfront cost of the mining equipment that you are using to mine Bitcoin.
You will also need to enter the hash rate of the mining hardware you are using.
This hash rate is typically measured in Giga Hashes per second and the higher the hash rate is the faster the system can mine Bitcoin.
You can calculate how efficient your machine is in mining when you divide the hash rate of the hardware in Giga Hash by the power consumption in Watts.
However, in the Bitcoin mining calculator you will simply need to enter the amount of power consumed in watts by your mining equipment and the calculator will do the rest of the calculations.
As you may know Bitcoin mining uses a massive amount of power.
This amount may vary according to the size or number of computers used for mining as well as the size of your mining operation.
If the cost of electricity is less, your mining operation will be more profitable.
In the Bitcoin mining calculator, you will need to input this cost of electricity as well.
You will be better off when you join a mining pool while mining Bitcoin.
These mining pools usually charge a very small fee usually based on the percentage of the power used by you but significantly enhances your chances to make profit from crypto mining by sharing computational power.
The Bitcoin mining calculator will need you to enter this fee charged by the mining pool.
The Results
Finally, it comes to calculating the results.
If you are sure that you have entered all the necessary details into the Bitcoin mining calculator correctly, you simply have to click on ‘calculate’ to get the results.
It will typically appear almost instantly and automatically.
Different types of calculators will display the results in different currencies but most of them display it in US dollars.
Using the Bitcoin mining calculator you can look at your profitability according to your need or wish.
You can see it on an hourly basis or even on a daily, weekly, monthly, and annual basis.
Converting Power
Now it comes to the conversion of the power part for your Bitcoin mining rig, which may be difficult if you do not know what to convert in the first place and follow the right approach.
In order to convert Kilowatts to Watts or kW to W:
A Kilowatt, referred to as kW, is a standard unit to measure power used by any electrical device.
However, this power consumption in small electronics components is measured in Watts most of the time and is referred to as W but if it is bigger in size the electricity consumption will be higher.
In such a situation it will be easier to measure the power consumption in Kilowatts where 1 kW is equal to 1,000 W.
Therefore, to convert Kilowatts to Watts you simply have to multiply by 1000 and to convert Watts to Kilowatts you will have to divide it by 1000.
In order to convert Kilowatts to Megawatts or kW to MW:
A Megawatt, referred to as MW, is equal to 1000 Kilowatts and in terms of Watts it is 1000000 watts.
However, this is how you should go about it. If you want to convert Kilowatts to Megawatts, you will have to divide it by 1000, and multiply by 1000 if you want it otherwise, that is from Megawatts to Kilowatts.
Remember, Megawatts, Kilowatts and Watts are all convertible by the same multiple.
In order to calculate Kilowatt Hours or kWh:
Therefore, you can see that it is very easy to convert Watts to Kilowatts or vice versa.
However, it may not be as easy as that when it comes to calculating Kilowatt Hours, referred to as kWh.
The process becomes a little bit more complex because it includes both time and power and there are several factors to consider while calculating it correctly.
The common steps that you should follow to calculate the Kilowatt Hour include:
- Finding the wattage of the mining rig
- Multiplying this wattage by the number of hours you use your mining rig, which is typically 24 hours since Bitcoin mining is a continual process
- Dividing it by 1000 to convert Watts into Kilowatts and
- Multiplying the result with the number of days, usually 30 days.
You eventually will get the result in Kilowatt Hours.
In order to convert the monthly cost of electricity from Kilowatt Hour into per Kilowatt Hour:
For this conversion, you will first need to know the cost per kWh charged by your utility company.
You will get it in the bill you paid in the last month but for that you will need to know the intricate details involved in it such as the fees, tiers, taxes and others, in order to get the real cost charged by the utility company.
If you do not then it is advised that you contact your utility company to get the actual cost per kWh.
Once you have it, multiply the kWh figure you obtained from above with the actual cost per kWh to get the monthly cost of electricity used by your mining rig.
In order to convert the monthly price per Kilowatt into price per rig:
To make this calculation, you will simply need to contact the mining farm or the data center to get the cost per Kilowatt per month.
Once again, the range of such costs may vary because it depends on several factors such as the space, the power, the cooling systems, internet, and security.
Once you get that, find the total power demand for your mining rigs. Make sure that this figure includes the load factor.
This is a common requirement of the mining farms and data centers.
The load factor will be 80% if you stay and mine in the United States which is also applicable to commercial buildings and homes for safety reasons.
The steps to follow to make the final conversion are:
- Determining the total power demand of your mining rigs in watts
- Multiplying the total power demand in watts by the load factor
- Converting Watts to Kilowatts and
- Multiplying the total power demand including the load factor by the price per Kilowatt for the month.
You may ask why it is necessary to take the load factor in the equation.
Well, the main reason to include the load factor into this specific calculation is that wire and circuit breakers often cannot take on a continuous load, which is something that you cannot do without while mining crypto coins.
With all these done correctly, you will know how much profit you can make from Bitcoin mining.
Just remember that doing your research, having the right kind of mining hardware, and choosing a low electricity cost where possible will increase your Bitcoin mining profitability.
Conclusion
Over the years just as mining Bitcoin has become more difficult it has also made it quite complicated and harder to calculate the profitability in it.
However, it is not impossible if you use the right Bitcoin mining calculator and know how to use it.
I have special interest in crypto and intend to help common people to gain knowledge about the digital asset as well as its potential. Follow Me at Linkedin.
