What is the expected net profit over the course of the year

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You can buy some mining hardware for $403 which will be able to mine at 10 THPS (tera hashes per second), and consume 1,137 Watts of power. The hardware is known to have a pretty high failure rate, with an expected lifetime of 1 year.

The bitcoin mining hash target requires 18 hex leading zeros, which you assume will stay relatively stable during the next year. You pay 8 cents per KWh of power.

Bitcoin mining reward is 12.5 BTC per block, and bitcoin is trading at $5,474 USD, both quantities expected to remain stable over the course of the year.

What is the expected net profit over the course of the year if you decide to invest in this project?

Reference no: EM132421830

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