The easiest way to calculate mining profitability is with a mining calculator. It should include several factors to change and a good mining calculator should include ability to input power rates, power usage, hash rates, difficulty increments, price of hardware, and price of Bitcoin just to name a couple.
Another easy way to calculate if mining is profitable is asking one simple question. Let say for example that you have $400. Now at time of writing, that could buy you one Bitcoin, or 1 s3 and still have .4 BTC left over.
To calculate if it’s profitable to mine instead of buying, you have to ask yourself if XXX mining hardware can generate more BTC than it costs to purchase the hardware. If not, then mining is not profitable.
When you take this approach, I hardly ever see mining being profitable. But if you’re mining, it’s usually for fun or you would like to help support the network.
To even have a slight chance in making profit as a miner, it’s almost needed now to join a multipool. A multipool is a mining pool that mines the profitable coin based on difficulty, selling price, etc. and then dumps xxx coin in exchange for payouts in BTC.
If you are mining for profit, a key element of making a profit is reselling. If you can resell your miner at the right time, you only have to make partial ROI from mining, and let the reselling take care of the rest. Another easy way to make profit from mining is renting your miner out to people. People are willing to pay a premium for not having to pay electricity or put up with the noise and heat outputted from a miner, so it’s easy to make a profit from here.
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