Ethereum has been getting a lot of attention in recent times, and there are plenty of digital currency enthusiasts figuring out a way to mine this currency with their computer. One of the things to keep in mind when mining any form of digital currency is figuring out whether or not it will be profitable. The newly released mining profitability calculator by Cryptocompare will provide valuable insights to those looking to mine Ethereum, Bitcoin, Litecoin, Monero, or DASH.
A Mining Profitability Calculator is Invaluable
Setting up a computer or different device to start mining digital currency is not the hardest part, although it might be a challenge for Ethereum users on Windows right now. The biggest hurdle is trying to figure out whether or not it makes economic sense to mine, especially when considering the electricity price, how much wattage mining will need, and the current price of the currency being mined.
In the Bitcoin world, mining has been a topic of contention for quite some time, as miners would need a specific price point to break even. This has also caused some Bitcoin cloud mining companies to suspend mining operations in the past, due to a very low Bitcoin price.
A mining profitability calculator can be an invaluable tool in this regard as they will help estimate the costs and earnings of the mining process for that particular digital currency. Even though these tools cannot account for volatile price swings for Bitcoin, Ethereum, or the other supported currencies, a mining profitability calculator will give users a baseline breakdown to work with.
Before [aspiring] miners can start to use the mining profitability calculator offered by Cryptocompare – or any other service – they will need to figure out certain aspects. For example, how much are the electricity costs at the place one is mining from, and how high will the power consumption be? Once all of these details have been figured out, they can be entered in the mining profitability calculator.
But there are other factors to take into account other than these details and the potential price swings for the currency in question. When using mining profitability calculator, the values are based on the current network hashrate. As is the case with any digital currency being mined heavily right now, those rates will go up and down over time, which will affect potential earnings as well.
Prototype Stage But Functional
When we talked to Cryptocompare CEO Charles Edward Hayter, he did mention how the mining profitability calculator is currently in the prototype stage, but it is functional. Any feedback users can provide regarding the usage of this tool are more than welcome, and will help the team improve this tool in the future.
Moreover, the digital currency community can ask Cryptocompare to support additional currencies on their mining profitability calculator page. Although five of the top digital currencies are supported right now, there is room to add more over time.
What are your thoughts on the Cryptocompare mining profitability calculator? Do you use a different calculator? Let us know in the comments below!
Images courtesy of Cryptocompare, Shutterstock