The Bitcoin mining breakdown: Is mining still profitable?

Delgado-Mohatar, Oscar; Felis-Rota, Marta; Fernández-Herraiz, Carlos

doi:10.1016/j.econlet.2019.05.044

Cited by 29 publications

(6 citation statements)

References 3 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…[ 7 ] provided an updated estimation of the energy consumption of the Bitcoin network and a calculation of the evolution of the production cost of Bitcoin over time. They concluded that since June 2018 Bitcoin mining is no longer profitable for commodity miners without access to electricity prices below 0.14 $/kWh.…”

Section: Literature Review and Business Mining Activities Reviewmentioning

confidence: 99%

Energy and cost efficiency of Bitcoin mining endeavor

et al. 2023

View full text Add to dashboard Cite

The main aim of the study is to analyze BTC mining’s efficiency under current market conditions (December 2021), including soaring energy prices produced from many different sources in different geographical locations. After a thorough analysis of initial assumptions concerning the (1) price of mining machine with associated components and its effective amortization period, (2) difficulty and the hash rate of the BTC network, (3) BTC transaction fees, and (4) energy costs from various sources, we have found that currently, BTC mining is not profitable, except for some rare cases. The main reason for this phenomenon is the fast and unpredictable increase of difficulty of the BTC network over time which results in decreasing participation of already purchased mining machines in the BTC network hash rate. The research is augmented with a detailed sensitivity analysis of mining efficiency to initial parameters assumptions, which allows observing that the conditions for BTC mining to be efficient and profitable are very challenging.

show abstract

Section: Literature Review and Business Mining Activities Reviewmentioning

confidence: 99%

Energy and cost efficiency of Bitcoin mining endeavor

et al. 2023

View full text Add to dashboard Cite

show abstract

“…Bitcoin ASICs, for example, are specially optimised to compute Bitcoin hashing in a fast and efficient way. Several improved versions of the ASIC hardware have been developed since its introduction in 2012 [44].…”

Section: Hardware Requirementsmentioning

confidence: 99%

Utilising the Computational Power of Blockchain Proof-ofWork in Computer-Aided Drug Design

Jaiyeoba¹,

Samsudin²,

Sulaiman³

2022

IJETAE

View full text Add to dashboard Cite

Proof-of-Work (PoW) algorithm is a popular blockchain algorithm employed in many blockchain applications such as Bitcoin. Cryptographic hashing is the foundation of the PoW algorithm and blockchain technology in general. Unfortunately, the use of hashing in PoW has led to huge computational requirements. Researchers and industrialists are aware of the immense energy consumed by the PoW algorithm in blockchain-based cryptocurrencies. For instance, Bitcoin currently consumes above 110 TWh of electricity annually. This vast amount of energy is used to calculate non-valuable cryptographic hashes, which eventually becomes a waste when the right nonce value is found. Bioinformatic researchers depend on molecular docking simulation, which is effective but requires heavy computing resources. This paper proposes a solution to the above issues by taking advantage of the wasted computing power harnessed by the PoW algorithm and subsequently channelling the computing resources towards molecular docking simulations for drug discovery. With the new proposed framework, molecular docking is introduced into PoW algorithm where energy from a PoW system like bitcoin can be used to help researchers crunch bioinformatics data for computer aided drug discovery. A target protein receptor and ligands are introduced at the beginning of a new mining period, rather than computing random computer bits to discover a nonce, mining nodes will perform docking simulations with the receptor and ligands to generate docked conformations for drug creation research. This research does not seek to reduce the computational energy of the PoW rather utilise this energy for valuable drug creation process. Keywords— Blockchain, Bitcoin, PoW, Ligand, Molecular docking, RMSD, Score

show abstract

“…Originally developed to prevent spam (Dwork & Naor, 1992), PoW is an easy-to-check cryptographic proof of computational effort (Delgado-Mohatar et al, 2019). PoW is the process of solving a hash key determination problem that starts with a certain number of zeros, which is difficult to solve by users called miners and requires a significant amount of time and computing power (Pinna et al, 2018).…”

Section: Blockchainmentioning

confidence: 99%

Blokzincir Tabanlı E-Ticaret: Bir Değerlendirme

Aydoğan

AYDEMİR>

2022

International Journal of Social Inquiry

View full text Add to dashboard Cite

The e-commerce sector has grown beyond predictions with the help of the most recent technological developments, changes in consumer preferences, and the COVID-19 pandemic. E-commerce activities assume a subsidiary role of brick-and-mortar shops with the benefits it offers to all parties, which have also resulted in new problems such as privacy, security, transparency, and costs, unlike traditional businesses. Blockchain technology is among the promising technologies in solving the problems of the e-commerce sector with its decentralized structure that does not require third-party intermediaries, and its features (such as privacy, immutability, security, transparency, and auditability). In this study—which examines, under five titles, the benefits that blockchain can offer to e-commerce—it is concluded that blockchain can reshape e-commerce activities by enabling integrated e-commerce systems that include all parties and offering low transaction costs, high transaction speed, traceability of transactions, strong security standards, and low risks. In this direction, blockchain-based e-commerce platforms can push existing e-commerce platforms into the background.

show abstract

The Bitcoin mining breakdown: Is mining still profitable?

Cited by 29 publications

References 3 publications

Energy and cost efficiency of Bitcoin mining endeavor

Energy and cost efficiency of Bitcoin mining endeavor

Utilising the Computational Power of Blockchain Proof-ofWork in Computer-Aided Drug Design

Blokzincir Tabanlı E-Ticaret: Bir Değerlendirme

Contact Info

Product

Resources

About