Is Mining Bitcoin Still profitable?

Bitmain Antminer S9 Review

  • Highest out there hashrate at ~14 TH/s
  • Very environment friendly at ~zero.1 Joule per GH/s
Cons
  • Excessive price at ~$499 (USD)
  • Energy provide offered individually (including one other $170– $20)

Buy Antminer S9 on eBay

AntMiner S9: Recreation Changer for Hobbyist Miners?

Bitcoin’s Difficulty has recorded several strong and often consecutive monthly increases since its creation, and particularly from late November 2015.

Difficulty has almost tripled since then, climbing from520,569,941GH/s to the present file excessive of 1,426,731,353 GH/s.

This peak was reached on May 24th 2016. Such great development has been spurred by main funding into Bitcoin mining technology and operations.

Whereas such development is spectacular, making Bitcoin the world’s strongest computing community by far, one unintended consequence of such fast development has been elevated centralisation.

Earnings have accrued the place mining is most worthwhile (China), with the outcome that a number of competing operations have been pressured out the trade.

We’ve tried to calculate the sum of money that the Chinese language have invested in mining, we estimate it to be within the tons of of tens of millions of . Even with free electrical energy we can not see how they’ll ever get this a reimbursement. Both they don’t know what they’re doing, however that isn’t very seemingly at this scale or they’ve some secret benefit that we don’t find out about. – Sam Cole, KNC CEO

The identical Chinese language aggressive benefit has been doubly efficient at squeezing the profit-dependent hobbyist miner from the market.

At this stage, most dwelling or workplace miners aren’t hashing to earn cash however quite to help the community, assist decentralisation and presumably even to warmth area.

With the block reward halving looming, the profitability of all however probably the most environment friendly operations will seemingly be challenged.

Provided that income derived from the present era of mining are dwindling and can seemingly attain unfavourable returns post-halving:

Can the brand new S9 change the sport for smaller and pastime miners and restore their misplaced profitability?

Worth

Notice: Before you purchase an Antminer S9 ensure you have already got Bitcoin mining software and a Bitcoin mining pool.

The primary batch of S9s shall be out there for order immediately from Bitmain Antminers from the 12th of June.

At $299 on Amazon, the S9 is way from low-cost. Nonetheless, the decrease your electrical energy prices, the higher your odds of the miner paying for itself inside an affordable timeframe.

Naturally, a lot is dependent upon the Issue and Bitcoin worth.

As smaller manufacturing processes change into commonplace throughout the trade and as different producers launch competing , the S9’s worth could be anticipated to fall appreciably over the approaching months.

Bi Wang is launching its 14nm chips someday in winter 2016 and BitFury’s personal 16nm structure , promising implausible energy effectivity at zero.06 J/GH, can be reported to be coming quickly.

Judging worth on this area is a sophisticated train, though it might seem that nothing vastly technologically-superior to the S9 is more likely to be launched within the close to future.

The discharge cycle of a brand new era of mining each few months is more likely to decelerate from this level on, as producers have transitioned to cutting-edge 16 and 14nm designs.

S9 In comparison with Different

Pic Miner Hash Energy Worth Purchase
Dragonmint 16T 16.zero TH/s $2,729
antminer-s9.md Antminer S9 14.zero TH/s $three,000
antminer-r4.md Antminer R4 eight.6 TH/s $1,000

The S9’s 16 Nanometer Technological Benefit

The on-going miniaturisation of semiconductors permits ever larger computing energy and electrical effectivity, however the course of can not proceed perpetually with the present know-how.

Many have remarked that Moore’s law not holds true, as the speed of computing velocity development has slowed because it reaches the bodily limitations of silicon semiconductor know-how.

The 16 nm fabrication process used within the manufacture of the S9 is a significant enchancment upon the 28 nm design frequent to different fashionable mining units.

Though a 10nm course of is on the horizon for 2017, additional will increase past that stay theoretical.

Additional, the design and manufacture of any 10nm Bitcoin mining is more likely to take no less than a 12 months.

Energy Provide

The excellent news is that current energy provides, no less than these of ample wattage, are absolutely suitable with the S9.

Really helpful to be used with the S9 are:

  1. The AntMiner APW-12 1600 Watt Bitcoin Miner PSU, which retails for just below $200 on Amazon, and
  2. The EVGA SuperNOVA 1300 Watt GPU PSU, which sells for about $170 on Amazon. Notice that the 1600 Watt EVGA PSU is considerably costlier, by about $115, than Ant Miner’s equivalently-powered providing.

Bitcoins / Month (Profitability)

The S9 has extra hashing energy than any earlier machine crammed into its silicon; a large 14 TH/s (TeraHash per second).

A complete of 189 chips, unfold over three circuit boards, are mixed to realize this phenomenal hashrate.

Excluding a 15 transient TH/s spike which occurred late 2011, a single S9 unit boasts a hashrate equal to the height capability of the whole Bitcoin community from its bootstrapping till mid-2012!

Let’s calculate the projected income from all that hashpower through our Bitcoin mining calculator :

Notice that Energy Value shall be particular to your location and that Issue adjustments each 2 weeks, normally to the upside…

Though take into account that post-halving, it’s fully potential that loads of marginal miners shall be pressured to both improve to higher or shut down.

Your Pool Charges shall be decided by your mining pool; though the S9 is a lot highly effective, a single unit is very unlikely to seek out any blocks when solo-mining.

Lastly, the Bitcoin to Greenback (USD) worth is infamous for its fixed state of flux.

In line with the above inputs, the S9 will produce** zero.285 BTC / $159 per thirty days** and three.36 BTC / $1939 per 12 months.

These places Return on Funding (ROI) barely above one 12 months!

After all, such spectacular outcomes assume all components keep fixed which is massively unbelievable within the ever-changing world of Bitcoin!

Energy Consumption

The cutting-edge manufacturing course of is what makes the S9 probably the most electrically-efficient mining machine so far.

It makes use of a mere zero.1 Joules per Gigahash, making it roughly 2.5 instances extra environment friendly than the Antminer S7.

The overall energy consumption of the machine works out to round 1350 watts, though this determine is topic to about 7% of variance. The S9 consumes about 300W greater than the S7.

Setup

Other than the ability provide, the S9 is a self-contained unit. It requires no connection to a different laptop to interface with different Bitcoin nodes.

Its onboard net administration portal permits for a simplified setup and upkeep course of.

Temperature

The S9 is air-cooled and its sturdy design is pretty straightforward to take care of and repair.

The S9 performs reliably in any well-ventilated area, whether or not a single or a number of unit(s) saved in a spare room or tons of to hundreds of items in a big mining heart.

Verdict: Does Passion Mining with an S9 make Enterprise Sense?

Primarily based on the information and outcomes calculated above, sure.

However! as main miners improve to S9s and different superior , the resultant Issue will increase are more likely to erode future profitability.

However, the halving might carry a couple of increased Bitcoin worth and lowered competitors, rising profitability.

In the end, the S9 is a great piece of hardware though presently quite costly.

It’s more likely to stay worthwhile for much longer than earlier generations of ASIC miner, though ROI can’t be assured given the inherent unpredictability of Bitcoin mining.

S9 In comparison with Different

Pic Miner Hash Energy Worth Purchase
Dragonmint 16T 16.zero TH/s $2,729
antminer-s9.md Antminer S9 14.zero TH/s $three,000
antminer-r4.md Antminer R4 eight.6 TH/s $1,000

 

Evaluation by:Jordan Tuwiner

Score: four

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