Bitcoin Forum

Alternate cryptocurrencies => Mining (Altcoins) => Topic started by: CryptoMiner on February 06, 2014, 03:54:02 PM



Title: What makes a coin's mining profitability change so often besides exchange rates?
Post by: CryptoMiner on February 06, 2014, 03:54:02 PM
I have been using coinwarz for direction on what coins to mine from day to day and trying to figure out the meaning behind some of what I am noticing. Any help is greatly appreciated form you guys. So I noticed that the difficulty of a given coin can rise AND fall through out the day. I thought the difficulty only rises but I guess I was wrong. What causes that? My guess is maybe when miners jump ship and the overall network hash falls. Is that an accurate guess?

Thanks for your help!


Title: Re: What makes a coin's mining profitability change so often besides exchange rates?
Post by: rwessels on February 06, 2014, 06:29:31 PM
Most coins will automatically adjust difficulty up and down.  There were a few that didn't adjust down quick enough and when miners stopped mining them as much, it became almost impossible to get to the next adjustment and they eventually just died or were hard forked.  With huge multi-coin pools, many coins adjust in huge swings multiple times a day.


Title: Re: What makes a coin's mining profitability change so often besides exchange rates?
Post by: CryptoMiner on February 07, 2014, 11:55:08 PM
I see. So they lower the difficulty when they are losing network strength to entice people to come back. Something like that? Thanks for taking the time to reply.


Title: Re: What makes a coin's mining profitability change so often besides exchange rates?
Post by: Victoo on February 08, 2014, 06:32:31 AM
I see. So they lower the difficulty when they are losing network strength to entice people to come back. Something like that? Thanks for taking the time to reply.

Yes. That's what they do.