Disclaimer: These calculators are designed to be informational and educational tools only and do not constitute investment advice. We strongly recommend that you perform your own calculations before making any decisions. The results presented by this calculator are hypothetical and may not reflect the actual coin production of your own mining plans. BTC Miner and its affiliates are not responsible for the consequences of any decisions or actions taken in reliance upon or as a result of the information provided here.
Successful Cryptocurrency mining builds on various underlying factors. We would like to show this with an example of how the daily coin production works in theory, while creating awareness of the inherent variables and their potential volatility.
As shown in the formula, the factors that affect potential coin production can be split into three categories. While BTC Miner has control over the Facility Specific factors and Operating expenses, we have no control over the Market Factors (Coin Price & Network Hashrate/Mining Difficulty).
Market factors are unpredictable: coin market prices and network hashrate can often vary. For example, the Bitcoin mining difficulty can change roughly every two weeks, while the DASH difficulty can change significantly after each mined block which is roughly every 2.5 minutes, and that is why a 100% accurate estimation is simply not possible.
Amongst others, there are primarily three variables at play with regards to Coin Production through Mining: Coin Price, Network Hashrate, and Mining Difficulty with Coin Price being a key driver.
When the coin price increases, the incentive for mining grows. In general, more miners means an increase in network hashrate which in turn translates to an increase in mining difficulty and therefore a potentially lower production of mining outputs. The coin price increase, however, usually compensates for the lower mining outputs.
While greater returns in general attract more miners and cause an increase in the network hashrate, this usually happens over a period of time. The planning and building of mining farms can take months, which means that the new hashrate gradually comes online with a time delay.
When the coin price declines, the incentive for mining slows. Depending on the economic situation, some miners might run into a loss and might have to turn off their miners, thereby leading to a drop in the network hashrate.
A drop in the network hashrate translates to a decrease in the mining difficulty and therefore a potentially higher production of mining outputs. Although the coin production might increase, this often does not mean higher USD returns, as the coin price decreased to a similar extent.
The higher coin accumulation can benefit the miners who are long term players, in case the coin price eventually rises. As in the previous scenario, the transitioning of network hashrate (in this case, a reduction) might see a delay due to the new mining farm build out backlogs.
When the coin price remains stable for a longer period of time, the network hashrate and difficulty level can remain on a neutral level, ceteris paribus, leading to a steady production of coins.
However, certain events, like the introduction of next generation miners, could lead to an increase in difficulty levels.
This self-regulating system rewards the most efficient and committed miners.
In the case of Cloud Mining, an important factor influencing mining dynamics is the maintenance fee (if applicable). For example, since the daily maintenance fee is a fixed USD value based on your amount of hashrate, and is paid from your mining revenue, an increasing DASH or Bitcoin price translates into fewer mined coins going into your fee - which results in a higher mining output, and vice versa.
The maintenance fee does not apply to our Bitcoin Radiant Zero plans because they have no maintenance fee.
Let’s now look at a practical step by step guide for estimating the potential performance of a mining plan, using a third-party Mining Calculator. Please follow the steps listed below. You can use the hashrate and Daily Maintenance fee from one of our Mining Plans.
The result is an estimate of the average Gross mining outputs (in relation to the mining difficulty in the last 7 days).
Please proceed to the next step (PART 2).
Select your plan:
The result is an estimate of the average net mining outputs (in relation to the average mining difficulty in the last 7 days).
The result is an estimate of the average net mining outputs (in relation to the average mining difficulty in the last 7 days).
The result is an estimate of the average net mining outputs (in relation to the average mining difficulty in the last 7 days).
The result is an estimate of the average net mining outputs (in relation to the average mining difficulty in the last 7 days).
* For BITCOIN Mining Plans, you can use the difficulty set by default in the calculator because it only changes once every two weeks. Historically, Bitcoin difficulty has an upward trend. However, for DASH Mining Plans we suggest you use the 7-day difficulty average over the ongoing daily rate because of the significant intraday difficulty volatility of DASH, which changes every 2.5 minutes. If you use a shorter time period, your calculation may fail to account for this difficulty volatility.
** This is an average mining output value and may differ from the real daily output, for example, due to the significant intraday difficulty volatility of DASH, and the mining pools’ luck for DASH and other coins. This calculation assumes that the difficulty and any coin price remain constant over time, which is a very unlikely scenario.
Please keep in mind that Dash reduces the block reward every year by about 7%, and Bitcoin reduces it roughly every 4 years by 50%. The effects of this are likely mitigated over time, but it is important for you to be aware of this aspect of DASH and Bitcoin mining.