Bitcoin Forum

Mining reward is reducing and bitcoin is back at 47k for now, what do you think is going on? Why is reward going down?

Are you mining ETH? You do realise that your payout is related to the block reward plus the transaction fees. Earlier in the week when ETH started to crash there was 500-600 Gwei in gas fees. Now its less than 100 Gwei. So right now its about 1/6th of what it was at the peak. So your miner rewards can be like 1/3 of what it was before.

The regular block reward is always constant but the transaction miner fees are dynamic. When there is great demand for ETH and making transaction the fees go up. However if ETH trades sideways for the next few months, people will make less transactions and fees will be cheaper.

Then there is the price of ETH itself. When ETH falls your overal profit in USD falls also since the underlying price is also lower.

This is going to get worse and worse, you trolls only saw the good side of the pump, now seeing the dump effect. Imagine your profits crash 95% in days? you were making 100 usd per day and now you are making only 5 usd per day eheh and now you realise you were scammed when you bought that 3060ti for 1300 usd(this is the going on price of it right now) hehe

that depend on how happen in eth network, if less transaction = less reward + eth price down 25%, and we're going further lower in next days as bitcoin&eth price shinking

just hoping for another panic seller on token, the fees will raise the rewards for miner

You shouldn't be building any mining rigs if you aren't fully ready for the both sides, it's assured that ethereum won't be profitable forever that's why it's always smart to build rigs before bull starts but still if you are already in this mess there isn't any reason to be panic, who says that the bullrun is over anyways? Keep mining and let's see what's coming

Yeah it used to be 4-5$ per rig :) (180mhs) people saw 1 3060 making 8$ they run to store and empty, all scalpers now happy also nvidia also happy sayin woooow we did again.

You see that is what you trolls fail to understand, if you know a bullrun will start then buy coins, not gpus, gpus will never give you 10 to 100x return.


Exactly, not joking, i see shops where I live pricing a 3060ti at 1500 usd and they are selling them as fast as they get, insanity, even the non ti 3060 are sold for 1200 usd now, anyway, I know where this will end, and will not be pretty.

Currently the reward per block is 2 ETH + fees, and as you can see here the fees are representing 50% or more in the reward:
https://etherscan.io/blocks (https://etherscan.io/blocks)

Fees remain very high, but the hashrate continues to rise at a speed never seen before:

https://i.postimg.cc/tT8VyFdd/hr-436-x-182.jpg

What are trolls? Humans like you? This makes you a troll too, anyways we have different reasons why we build mining rigs, I personally build one for monthly income of which the money is going to a funding project ( not crypto project ), also I'm mining with the sun so even if a card gives 1$ only it won't stop me from mining

No one is trying to stop you mining pal.

The funny part is there are some success stories about miners that never stopped mining since bear market began in 2018, they mined some ethereum and hold till ethereum turn 1000+, aren't they the real winners here? Some said they spend more on electricity but isn't that for those who sold their ETH in bear market?

eth pays .1024 an mh.

so a 5700xt makes 50 x .1024 = $5.12  a day

it burns 3.1 k-watts a day or 62 cents at 20 cents a kwatt

thus it makes 5.12-.62 = $4.50 a day

in 100 days it is 450 dollars back.

the 5700xt was under 400 usd in the fall.

The issue is not what the op is writing

The issue is the card now sells on ebay for

as high as 1300

 https://www.ebay.com/itm/XFX-Thicc-III-Ultra-AMD-Radeon-RX-5700-XT-8GB-And-razer-x-chroma-External-eGPU/124558462186?


I offered this same model card NIB for sale here on BitcoinTalk


https://bitcointalk.org/index.php?topic=5308136.0

1 person asked about it no one offered  me a deal.

I have mined it from Jan 17 to Feb 27. that is 41 days I made back  180 dollars since I decided to mine with it.

I can list it for 1000 on ebay and sell it overnight.
I can offer it here for whatever and it will sell more quickly.
But I reached the point that selling on BTC means the buyers want bargains. But I don't worry about ebay fraud.
or ebay over pays me  and I deal with a chance fraud as long as 6 months.

Or I mine on and rack up coins.

 Money vs ETH vs BTC vs fees and how viabtc pays out.  212% today that is .105 usd


this rally started in July and it was 0.0095 usd. it peaked at .1363 usd an mh

so

0.0095 July 2020
0.1363 peak
0.1050 today



if at 0.0400 a 5700xt makes 2 usd - 60 cents = 1.40 a day

 a long way to go before we get there.  and it is still okay if we do go that low.

Ethereum gas fees will continue to drop which makes profits heavily decline. A lot of the uniswap trades have moved over to layer 2 such as quickswap.

New miners are going to be left bagholding hardware worth less than half the price they bought it for. Its not too late to sell your gpus.

You really thought profits would stay high? You know how many people would love to make an income from home doing next to nothing? This causes hashrate to skyrocket and profits go extremely low.


Sure they made money but would have been much better off just buying crypto with their money.

As of today this is completely false information.

It does not mean it will always be false but today it is false.

Come back and repeat yourself when viabtc drops to 5 cents an mh.  Even at 5 cents an mh eth is profitable to mine with 25 cent power.

I do agree that profits cycle up and done.  But to say we will just go right down from the peak of 13 cents an mh now at 10 cents an mh to 9 then 8 ,7, 6, 5, 4, 3 ,2, 1  is wrong.



I grabbed chart off Binance.us  today and played with it to show the issue at hand.

So which point of the cycle are we. one of them means greatness for mining the other is not so good. you are merely saying we are at the bad point. I am saying I am clueless to which point we are at.
https://i.imgur.com/H4ACJv9.png

https://etherscan.io/gastracker

Uniswap is always the top user of gas. L2 platform users are increasing rapidly.

https://twitter.com/mudgen/status/1365504846678392833 

Quickswap doesn't have fees like uniswap, it is Layer 2.

Gas Fees will continue to drop dramatically, new miners that came into the space start to cry as profits shrink.

A lot of people jumped in when gwei was hovering around 300-500gwei.

Does not matter  for mining the only number that matters is cents per mh.

look at the graph above and tell me you are certain that cents per mh is at the bad spot. vs the good spot.

you can't possibly know based on fees alone.

 viabtc is paying 212% for a block. so for a miner mining eth the coins value based on payout is 2.12 x 1479 = 3135 not 1479

So pretend gas fees drop to 130 % on viabtc and coins go to 2500. a coins value for a miner becomes 3250.  which is better than the current coin value of 3135 for a miner.


I do agree that fees will drop-----------bad for miner
I do agree that difficulty will rise-------bad for miner
I do not know if price will jump to 2500 or 3000 or 3500 or for that matter drop to 1000 neither do you.

How about fees dropping to 130% encourage investors to buy into eth due to cheap fees and coin price skyrockets to 4k?

the answer is you don't know if that will happen

and you don't know if coin drops to 1000usd or 500usd

all that matters for mining is cents per mh. and

gas
difficulty
coin price.  

are the 3 factors that control cents per mh and you simply are leaving out price.

I am not leaving out price for a coin of eth.   down to 500 up to 4000 somewhere inbetween that I don't know.

So true. I guess they will have to learn the hard way or live in denial like many bag or hardware holders do hehe

When bear market comes there is less high difficultly rate on ethereum mining right? Why can't one keep on mining for holding sake? You get better sats and the only thing that's wrong here is value, less value in dollars isn't it? There are some who mine and hold in bear markets and sell in bull market, I think they are the real winner, though still electricity bills must be very cheap to make this possible

You realise that buying coins on bear market is cheaper than mining it right? Bear market is negative profits and negative profits is where buying coins is better than mining, actually in my view buying coins is better even if eth mining gives you at least a dollar per card, know why? the hassle mining is, is just not worth mining for scraps. The greatest winners here are the one who buy coins in the bear market.

Hmm so selling GPU seem like the only best choice right now but I don't want to sell mine, I want to keep mining for that pennies and accumulating till the next few years comes and another bull season begins, also my electricity bill is very cheap too, I run on solar and grid around the clock

No one knows what exactly happens. So far i see only good option is buying coins instead mining. Till next bull season maybe 3-4 years and on this period eth may go POS and also there new ASICS are killing ETH mining too bla bla bla only headache. and also there is possiblity there will be new gpus new stuff, no one knows.

I always hear this 'I'm mining on solar, so it's free' argument.  That's only true if you are 100% off the grid and store your power in batteries, or you live in a place that doesn't pay you for your excess solar power.  If you bought panels specifically for mining and they are only hooked to that, there is a huge sunk cost that needs to be amortized against profits. 

There are MANY opportunity costs to mining that miners always seem to conveniently forget/deny.  If you spent $3,000 on GPUs and equipment for example and you have a mortgage or any other interest bearing debt, you could have used that money to pay down debt instead.  You need to calculate present and future value, not just blindly add up profits.  I'm not saying it isn't profitable, but it's not as profitable as many make it out to be especially IF you're buying cards specifically for mining (i.e. not just using already bought gaming GPUs).

I admittedly still don't fully understand the way fees/difficulty works, but what I have seen the last week is my 'daily estimated' profit in Ethermine drop from about 0.008 to 0.0055, even though the price has rebounded somewhat, this keeps going down.  Does that not just mean that my profit is about half what it was?

No it means the pool has been unlucky

viabtc.com pays pps+ and does not vary with luck very much

it is paying

0.0987 per mh for this day.

Once again a pps+ pool is easiest way to know why your gear will do for that day.

a 1000 mh farm will earn 98.70 today.

I clock this number 2 times a day every 12 hours.

Any other method or non pps+ pool is never possible to know daily payout.

also the block payout for viabtc is 198.78%.   which means after viabtc takes its fee you get 1.98 x the block



I clock these numbers every day.

they were.

1.5 cents an mh in JULY
105% payout in July


They peaked at 13.3 cents in feb
and 218% in feb

they dropped to

8.8 cents a few days ago.
and to 198% today.

mining payout on pps+ knocks out luck factor almost completely

so diff
fees
coin price

make up cents per mh

look at the chart I grabbed from binance.us  and redesigned to show my point


where are we on this chart on one spot price is ready to move up
on another spot price is ready to drop
https://i.imgur.com/H4ACJv9.png

So maybe I should switch pools?  Everything I've read and watched says to go with the highest hashrate pool and to stick to PPLNS.  That viabtc pool isn't an option for me as it's in Germany (I'm in Canada).  It shows that it's PPS+, PPLNS, and SOLO (on Miningpoolstats).  Can it be all 3 at once?

Yes a lot of pools offer optional pay systems for the miner to select based on port attached.  Read the start mining directions for the specific pool.

guys, market will be very unprofitable in 1 month because of difficulty, ASIC and EIP-1559, sell your rigs and get out while you can.  You will get a premium for your hardware and you can buy into the amount of coins you would have mined anyways with your profits! Price of electricity is not cheap and many of you who are just getting in have not figured that out yet and will be stuck with a heavy bill on top of expensive hardware which has lost a big portion of its use! Sell your rigs to uneducated miners who are just like you and do not know what they are getting themselves into, don't get caught holding the bag!

I'm mining on my gaming PCs, so I don't plan on selling any cards anyways, especially considering how hard they are to get.  I already have a 3070, 5700XT and and a 1660 Super.  It's certainly still profitable right now (power is only about 10% of my cost) although it is dropping daily now.  Buying new, incredibly overpriced cards right now to mine ETH would be dumb, you're right.

Ethereum gas fee is pretty low right now, around 89gwei or even less but the mining reward isn't bad either, I even noticed more satoshis added to mining rewards today, I hope things atleast stays this morning way for more longer

I’ve been mining since late 2013 and I will tell you one thing. Whenever you go to a computer store and see the GPU shelves empty it means there is going to be a top sometime within 3 months, give or take a month.

This happened in Nov 2013 and we peaked Jan 2014.
Happened in Nov 2017 and we peaked in Feb 2018.

Same situation happening right now. At first people were charging 25% over MSRP, then 50% and now I am seeing crazy 75-100% over MSRP. This is similar to people paying $1100 for a 1080 back in Feb 2018.

The best time to mine was 2016. The markets were slow and steady. Profits were almost identical to today’s profits. I think an r9 280x pulled in $1.50 daily. Difficulty slowly increased. Want a GPU to add to your farm? No problem go to any computer store and pay MSRP and usually there was a rebate. You could even buy second hand GPUs at 50% off MSRP.

You are better off mining at $1.50 a day rather than $5 a day because if the profits are way too high it’s never a good thing.

have we peaked yet? is it over now?

My 2 cents. 

If you have the cards - go for it
If you can get the cards at cost - go for it. 
Don't waste your $$ with scalpers at 2x/3x MSRP.  ROI will then be 2x/3x longer
As others said, if eth creeps down back toward 1000 buy the coin, don't mine.  Or do both :)
Can make up the difference picking up eth low rather than waiting for mining revenue.