📊 Pool Economics: Fees, Variance & Centralization
Analyze pool concentration and its impact on decentralization
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Understanding the economic realities of pool mining helps miners make informed decisions about profitability, costs, and long-term sustainability.
Mining Profitability Calculator
Calculate your potential mining profits based on hash rate, electricity costs, and pool fees.
Input Parameters
Cost Breakdown
Electricity
Largest operational expense. Mining in regions with cheap, renewable energy is crucial for profitability.
Hardware
Initial capital investment. ASICs depreciate quickly as network difficulty increases and new models emerge.
Operations
Cooling, maintenance, facilities, internet, and staff. Scales with operation size.
Pool Fee Comparison
| Pool Size | Typical Fee | Payout Frequency | Trade-off |
|---|---|---|---|
| Large Pool (>20%) | 1-2% | Multiple per day | Centralization concerns |
| Medium Pool (5-20%) | 2-3% | Daily | Balanced approach |
| Small Pool (<5%) | 3-5% | Weekly | Higher variance |
| Solo Mining | 0% | Highly variable | Maximum variance |
Economic Realities
Mining profitability depends heavily on electricity costs, hardware efficiency, and Bitcoin price. Many small-scale miners struggle to compete with industrial operations that benefit from economies of scale, cheap energy, and efficient cooling. Pool fees matter less than electricity costs—a 2% fee difference is negligible compared to a 0.05¢/kWh electricity advantage. Location and energy access often determine success more than pool choice.