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I am trying to find an equation that can represent an instantaneous estimated mining profit if we were to assume we have M number of miners at that specific instant.

The equations I found so far can be summarized as follows:

D = Difficulty H = Mhash/s C = Reward (currently 25 BTC)

24 / (D * 2^32 / (H * 10^6) / 60 / 60) * C = BTC/day

My questions are:

  1. What does the 2^32 represent because no one really explained it well although mentioned more than once, however lacking explanation.

  2. How can we introduce M to this equation to an instantaneous estimated profit?

0

#1

Difficulty 1 represents a target of (2^256)/(2^32). In other words, you must make 2^32 mining attempts on average to mine a difficulty 1 block.

#2

You must figure out what your expenses are, and subtract that from your revenue to get your profit. Remember to include depreciation of your mining equipment.

  • For number two, assuming we were to use the equation I mentioned above, how can we introduce the variable M. That is what I am trying to figure out – user123 Jun 3 '17 at 22:24
  • @user123 What should M represent? – Nick ODell Jun 4 '17 at 2:16
  • The total number of miners in the system at a specific time, in other words, the total computational power competing to solve a specific block. – user123 Jun 4 '17 at 18:23
  • @user123 That's already captured by difficulty. – Nick ODell Jun 4 '17 at 18:55

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