You have heard about Bitcoin, and you’ve already started to learn and understand the basics of how it all operates. You are excited to get into this field and you want to see just how much you might be able to make in profit. Of course, you have to consider this to be an investment, and that means you need to understand how much this investment is going to cost you. To get involved with Bitcoins today and to make a profit mining, you need to have certain types of equipment, and the costs can vary.
Costs of the Unit
When you are going to be mining, you need a miner, naturally. You have many options available today, and the costs for the ASIC miners will vary substantially based on the brand and the model. For some of the top-end miners, such as the Antminer S9, the cost of a single unit will be $2,000. For an ASIC miner that has less hashing power, such as an Avalon 7, you might only be paying $800 to $1,000.
When you are trying to determine the average cost for a miner, you need to consider a few things first. You need to compare the hash power of the miners and the energy usage. Compare the cost of that miner to other miners that have similar hash rates and energy consumption. This can give you a much better idea of the average cost of these pieces of equipment.
In addition, consider some of the other added expenses that you might have with the different miners. For example, the Antminer S9 does not come with a power supply. If you want to have power running to the miner, you will need to buy a supply, which can cost between $100 and $200. It is a good idea to make sure you factor this into the overall unit cost.
Costs of the Energy
When it comes to equipment for Bitcoin mining colocation and miner hardware, most people only consider the cost of the unit itself. However, this is a mistake. If you are only considering the cost of the equipment, you are not going to get a good overall picture of the cost of running the miner. You also need to consider the cost of electricity in the area where you plan to deploy the miner.
Before you simply choose to keep the miners in your home, which will require additional cooling equipment and more cost – consider the cost of electricity in different parts of the country or of the world. Find an area that has a datacenter and that has low energy rates. See if the datacenter can host your equipment. This will let you save on your energy costs, which means you can reduce expenses and increase profit.
Costs of the Mining Pool
Since it is virtually impossible to make a profit on your own if you are running only one or two machines and trying to mine blocks yourself, most have joined mining pools. These pools combine the hashing resources of all of the miners, and then they split the profits. However, there is a cost to working with these pools that many people forget to include in the cost of their equipment. When there is a reward earned by the pool, the mining pool itself will take a percentage of that reward. It is typically around 2%.
Will It Be Profitable for You?
Now that you have a better understanding of what the costs can be when it comes to ASIC mining equipment, you can have a better idea of whether it will be profitable for you.