Profitable Bitcoin Mining To Be Revealed By A New Calculator, As It Aims to Tell ‘Truth’
A new calculator is invented to calculate the profitability of Bitcoin Mining. The new calculator was created CEO of RandomCrypto, Josh Metnick. Josh tags it as “Unprofitability Calculator.” The newly created calculator is aimed at improving other tools and also revealing the truth if mining equipment is worth buying or not. The details of the calculator and its goals he explained in an exclusive chat with Coindesk.
Metnick ‘Unprofitability' Calculator
Metnick Josh, the CEO of RandomCrypto, discussed the details of his newly created tool, a Bitcoin profitability calculator, which he said “We joke about it being bitcoin's ‘unprofitability' calculator.” as he discusses in details the tool and its purpose.
According to Josh, he described it as a tool that calculates the profitability of bitcoin mining. He hopes that tool will cause an improvement of other tools out there, which in his opinion, do not depict the full truth whether mining equipment is worth buying or not. As an example given by him, using its measurement at today's price, reveals that most of the modern mining hardware are not profitable, which Bitmain's flagship S9 and GMO's new 7nm B2 is among as he claimed.
In his chat with Coindesk, he states that “Our goal is not to show mining as profitable or unprofitable – our goal is to bring more truth, accuracy, and transparency to [proof-of-work] mining. Sometimes mining is profitable, and sometimes it isn't. The bigger picture is to create tools and reporting systems to keep the hardware manufacturers honest.”
He points out the scam that is prevalent in the industry as an example where transparency and honesty are needed. He spends precious time of his life trying to get back millions of dollars he sent to Butterfly Labs, and Advanced Miner, until they fled with his money. So “this calculator is born of many years of getting screwed in numerous ways by mining companies,” according to Metnick.
Metnick further reveals the differences in his calculator and the ones out there as
“What we have found, over several years now of observations, is that all of the major Bitcoin mining calculators out there show bitcoin mining output as ‘profit,' instead of what it is: output.”
Most calculators don't add bitcoin's programmed-in “difficulty” rating – which is, the higher the difficulty, the more power it takes to solve the puzzle required to mine bitcoin, and thus far problem has grown exponentially. He states that because the high growth of difficulty is not imputed into such calculators, it makes mining lucrativeness inflated.
Metnick opines that the exponential growth in difficulty that had been since in the past ten years will continue to increase, and ought to be factored into most bitcoin mining calculators. Smaller scale mining is not profitable according to him, because of the price of Bitcoin at this particular time.
Finally, he said no single manufacturer was selling an ROI [return on investment] real machine at the retail level. And he speaks on the prediction of Bitcoin's mining difficulty which he states “It's not as predictable as the sun, moon and the stars. But it is predictable within a tight range of specificity.”