In recent years, cryptocurrencies have become a very popular tool for investments all over the world, as they ensure the safety of investors' investments, and also have good prospects in terms of increasing their value, and hence their value.
For the production of cryptocurrencies, which is called mining (from English mining - mining), complex encryption is used with the help of various computing equipment, most often based on powerful graphic processors, that is, video cards.
Mining equipment payback calculators and cryptocurrency mining profitability
There are several options for how mining can be carried out, each of which has its own advantages and disadvantages. Now that video cards have grown significantly in price, cloud mining is the most relevant when miners rent computing power, instead of buying expensive equipment on their own.
However, many cryptocurrency miners still prefer to build their own GPU farms themselves, using conventional video cards assembled in a single complex. Others acquire specialized ASIC mining machines.
To decide which mining method is best to choose, you should not rely on chance, because a lot of electricity is spent on cryptocurrency mining. You can calculate how beneficial a particular mining method will be to you and how quickly your investment will pay off using specialized online programs - mining calculators. Mining calculators vary depending on the type of device you use to mine cryptocurrency.
What affects the profitability of mining
First of all, you need to understand what are the main factors that influence the return on your investment in mining.
If you decide to create your own mining farm, then initially you will have to spend money on equipment. Only after these costs have paid off you will be able to profit from your investments.
- A device that is used for cryptocurrency mining. For the production of cryptocurrencies, different computing devices can be used, although they all have different efficiencies. The most effective are most often video cards, but ASIC, hard drives and CPU processors are also used for mining.
- Electricity consumption is one of the most important parameters that affect the profitability of cryptocurrency mining. When you specify the data of your mining farm in the appropriate fields in the mining calculator, be sure to use such tariffs that apply in your conditions, otherwise even a small difference can give a big error in calculating the profit and payback.
- The time after which you begin to make a profit is called the payback period. It is also worth remembering that to the cost of mining equipment you need to add the cost of electricity that your GPU farm will spend during this time. In addition, there may be other expenses if, for example, you placed mining equipment in a rented building and others.
- The total processing power of your farm or the hash of mining equipment. This parameter determines how many crypto coins your equipment will have time to generate in a certain time.
- The next important indicator is the complexity of mining, which depends on what cryptocurrency you mine. The blockchain of various cryptocurrencies has different mining complexity, while it constantly grows with time.
As for farms from GPU processors, there is a maximum of possibilities for mining on such equipment, hundreds of types of cryptocurrencies working on many different algorithms. To calculate the profitability of mining and return on investment today, the most trusted and accurate calculator can be called WhatToMine. On this mining calculator, you can calculate the profit from the mining of most of the main cryptocurrencies and choose the best from all in terms of profit. To do this, you only need to choose the type of your video card and you can find out the profitability and payback from mining right away for all available types of digital currency. This is very convenient, because the calculator will automatically calculate the income from mining on each of the existing algorithms.