How to Calculate the Bitcoin Mining Rate?

The Bitcoin block reward refers to the new bitcoins distributed by the network to miners for each successfully solved block. Satoshi Nakamoto, Bitcoin’s creator, set the block reward schedule when he created Bitcoin. It is one of Bitcoin’s central rules and cannot be changed without agreement between the entire Bitcoin network. The easiest way to calculate Bitcoin mining reward rate is by using an online calculator. That’s the first step. The second step would be calculating the hash rates of one’s system.

One of the most simple to use calculators is the Crypto Compare calculator. Using this calculator, you simply choose the currency you would like to mine and input its hash rate along with the wattage of your system and power cost. Then the website will show what daily profits are along with how much of the currency is being mined. The main problem with this site is that it does not factor in the network’s difficulty. Every day new miners join the network, which in turn increases the difficulty. That means that if one is solo mining, they will have a lower chance of solving the block, and if one is pool mining, this will lead to lower rewards.

The My Crypto Buddy calculator is another useful calculator which has the option to include difficulty in the calculations. This means that it decreases one’s mining profit each month depending on how much the site estimates that the network’s difficulty will go up or down. For example, if the difficulty goes up by 100 GH/s in one month, the calculator will then assume that every following month will incur a difficulty increase of the same amount.

This leads to a problem. If in one month the network receives an abnormal difficulty bump, whether due to a price increase of the currency leading other miners to join the network, or if AMD or NVidia release a new graphics card with a big hash rate boost, the MCB calculator will then use that abnormal value as the absolute value for every month, making the calculator unreliable. Though it is still useful to know that your mining income will decrease every month due to difficulty. This calculator also includes the mining pool fee. One can look at What to mine website to see hash rates for its system.



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