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Cost of Mining: The following algorithm can calculate the cost of mining. if mining reward > mining cost then miner goes on profit else miner goes on the loss where, mining reward = block reward and transaction fees mining cost = hardware cost and operating costs (electricity, cooling the hardware, etc.) The analysis of Bitcoin mining in this chapter shows different factors included in Bitcoin mining. Some of the important factors that should be taken into consideration are: Type of hardware chosen for mining Bitcoin Bitcoin reward per block Cost of electricity The budget for the hardware expenses Type of mining: solo or pool mining If joining on pool mining, we should look into network share, hash rate of a mining pool, mining reward from mining pool and so on. Mining Bitcoin is not an easy task since miners mining the Bitcoin are increasing every day resulting in an increase in hash rate and difficulty of the network. The approach of mining a Bitcoin using a High-end Desktop PC, FPGAs and GPU would be the worst idea in current scenario no matter how many of those devices we connect together and mine Bitcoin. However, they were the best mining hardware back in 2010- 59PDF Image | Analysis of Bitcoin Cryptocurrency and Its Mining Techniques
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