In this article, we will look at the Bitcoin mining profitability chart and analyse the changes over time of Bitcoin mining.
The figure above shows the mining difficulty of Bitcoin (BTC) over the years. As can be seen, the mining difficulty of Bitcoin has increased exponentially since 2010. Initially, Bitcoin was mined using CPU (Central Processing Units). However, as the difficulty of mining increased rapidly, CPUs are not powerful enough to mine Bitcoin, hence turning to GPU (Graphic Processing Units). In late 2011, FGPA (Field Programmable Gate Arrays) started to come into play. FPGAs contain specialized chips installed in precise sequences to improve the hash-guessing ability of a computer. Finally, miners have turned to ASICs (Application-Specific Integrated Circuit) since 2014 to mine Bitcoin.
The graph above shows the mining hashrate from 2015 to 2019 in the ASIC era. The hashrate has been growing rapidly since the start of 2017. This means that the difficulty of finding a suitable hash has been increasingly tedious.
In Conclusion
The above Bitcoin mining profitability chart shows that mining Bitcoin has come with increasing difficulty as the years go by. Hence it is expected that more resources would be consumed in order to mine the proper hash.
