Understanding Hashrate, Power Efficiency & Profitability

Shivam Jha

2/12/20221 min read

fan of 100 U.S. dollar banknotes
fan of 100 U.S. dollar banknotes

Before starting Bitcoin mining, it’s important to understand three key terms — Hashrate, Power Efficiency, and Profitability.

Hashrate means the speed of your miner.
It shows how many calculations your machine can perform per second.
For example, a miner with 200 TH/s (terahashes per second) is faster than one with 100 TH/s.

Power Efficiency tells you how much electricity your miner uses to create one terahash.
It’s measured in Joules per terahash (J/TH) — lower is better.
A miner with 15 J/TH is more efficient than one with 25 J/TH.

Profitability depends on three things:

  • Bitcoin price

  • Power cost

  • Miner efficiency

The formula is simple:
Higher hashrate + lower power usage = more profit

👉 Arka Mining helps you choose the most profitable and power-efficient miners, and our hosting service ensures low electricity costs and 24/7 uptime.