What is the profit when mining BTC with a known number of miners

-1

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:

What does the 2^32 represent because no one really explained it well although mentioned more than once, however lacking explanation.
How can we introduce M to this equation to an instantaneous estimated profit?

mining-profitability

user123

Posted 2017-06-03T20:19:32.810

Reputation: 61

first of all, current reward is 12.5 BTC – NimaNr – 2017-06-03T20:57:44.423

and second: read here: https://en.bitcoin.it/wiki/Difficulty#What_is_.22difficulty.22.3

– NimaNr – 2017-06-03T21:03:40.027

@NimaNr what about how to add the variable M – user123 – 2017-06-03T22:45:19.657

Answers

#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.

Nick ODell

Posted 2017-06-03T20:19:32.810

Reputation: 26 536

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 – 2017-06-03T22:24:10.090

@user123 What should M represent? – Nick ODell – 2017-06-04T02:16:28.420

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 – 2017-06-04T18:23:20.710

@user123 That's already captured by difficulty. – Nick ODell – 2017-06-04T18:55:44.210