Qi.xyz — Interactive Learning
Monte Carlo & Mining
From coin flips to probabilistic profitability — build intuition, then apply it
Section 01 — Gaussian Coin Flip Board
Intuition
Each flip is ±1 (heads or tails). Run thousands of independent trials and watch the Central Limit Theorem emerge — the sum of random variables converges to a bell curve regardless of the underlying distribution. This is the foundation of all Monte Carlo reasoning.
Coin bias (p heads) 50%
Flips per trial 50
Number of trials 2,000
Sum distribution across all trials
Theoretical mean
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Observed mean
—
Theoretical σ
—
Observed σ
—
Mean = n×(2p−1) | σ = 2√(np(1−p)) | As n→∞ the histogram converges to N(mean, σ²) regardless of p.
This is why miners can model revenue as a Gaussian even though each block find is a Bernoulli trial.
Section 02 — Monte Carlo Estimation
Convergence
The core MC loop: sample uniformly, evaluate a condition, aggregate the fraction. Here we estimate π by checking whether random points land inside a unit circle. Watch the 1/√N convergence rate — doubling samples halves the noise, not halves the error.
Batch size 500
Total samples
0
π estimate
—
Error from π
—
Inside circle
0
π estimate convergence
Section 03 — Profitability Monte Carlo
Applied
GBM price paths, stochastic difficulty growth, and electricity cost uncertainty — propagated through the full mining revenue model across thousands of scenarios.
Uncertainty Inputs
BTC monthly price vol 15%
Geometric Brownian Motion σ/month
QUAI monthly price vol 30%
Higher for emerging asset
BTC diff growth/mo range (%)
→
Uniform distribution
QUAI diff growth/mo range (%)
→
Uniform distribution
Electricity cost range ($/kWh)
→
Fixed per simulation draw
Annual price drift 0%
Applied equally to both prices
Section 04 — Point Estimate Calculator
Deterministic
Single-scenario projection using fixed inputs. Use this after Monte Carlo to dial in your base case, understand the formula mechanics, or generate a specific monthly table.
Hardware
Operating
₿ BTC Network
◈ QUAI Network
QUAI Profit Advantage
—
Monthly Profit
—
—
Payback Period
—
—
12-Mo Net Income
—
—
Net After Capex
—
—
Why the Difference?
Daily Unit Economics
₿ BTC
Daily Coins—
Revenue—
Power—
Profit—
◈ QUAI
Daily Coins—
Revenue—
Power—
Profit—
Monthly Projection
| Mo | BTC Coins | BTC Profit | QUAI Coins | QUAI Profit |
|---|
Formula: Daily Coins = (Your Hashrate ÷ Network Hashrate) × Daily Emission