Bitcoin Forum

Bitcoin => Mining => Topic started by: NapHappy on January 17, 2022, 12:04:54 AM



Title: How To Correctly Phrase How Difficulty Impacts Miner Productivity
Post by: NapHappy on January 17, 2022, 12:04:54 AM
I have been saying that a 10% increase in Difficulty results in a 10% reduction in productivity of a miner. I think it is a good approximation. But not accurate when dealing with larger increases.

If Difficulty went up 100%, the productivity of a miner would not go down by 100%, since that would result in zero productivity. It goes down by 50%.

So what is the correct way to explain the percent drop in productivity when a Difficulty goes up by X%

I know, I'm clearly not a math major, but I can understand a formula when it is presented to me   ;D



Title: Re: How To Correctly Phrase How Difficulty Impacts Miner Productivity
Post by: kano on January 18, 2022, 10:53:24 PM
Lets say you earn $100 a day and it costs you $50 a day to earn that.

If your earning drops 10% your profit drops 20% ...

i.e. the cost of earning makes a big difference