Bitcoin Forum

I was wondering if someone could elaborate on how increasing difficulty reduces payout? I'm having a hard time understanding that part.

If the difficulty increase +25%, you will mine 25% less. Simple

Is this just because the time until the next block is mined increases with the difficulty level?

Spaceships you have a very simple question which has a very simple answer. The more difficulty there is then the lesser mining is needed and vice versa is also true. For instance 10% higher difficulty mean 10% less mining needed. I hope it has clarified your confusions. In case of further help do ask questions

The answer I was looking for was that there is more processing power required by the higher difficulty level and if that stays the same, it takes longer for the bounty to be paid out. But thanks for being a dick for almost no reason other than I'm new at this.

The difficulty determines the probability of "solving" a block. Your hash rate determines how many solutions you can try over a period of time. If the difficulty goes up and your hash rate stays the same, then the number of times you solve a block goes down. The result is that you make less money over that period of time.

You have to join a mining pool in order to have a better payout.

Now I have another question regarding the difficulty: Why does difficulty go up and down on certain alt coins? For example digital coin is changing its difficulty between 5 and 18 up and down.

Miners switch between coins to mine the most profitable ones. If a coin is no longer profitable to mine, then miners will stop mining it and the difficulty goes down. When the coin becomes profitable again, miners start mining it again and the difficulty goes up.