Coins are made at virtually the same rate regardless of how much they throw at it...
Yes, but unlike two years ago most of these coins are now probably being sold off immediately. It seems probable that's what's behind the long downward slide we've seen. |
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Looks as if we had an upward spike in the hashrate today.
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I can't find any hardware currently available that has a good chance to ROI. Any bitcoin miners that approach 1J/GH are already dead. Even the ones that are decent (e.g. Antminers) are way overpriced.
If you want to break even, you'll probably have to produce your own ASICs, or buy in large volumes so you can get a significant discount. |
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Or if you have the expertise that's necessary to run a large mining data center and live in a favourable location.
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It's the other way round, difficulty will follow price.
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Punishing and greed is the wrong frame IMO. Home miners are no less greedy than industrial miners, and profit motive isn't a bad thing. Home miners are simply having their asses handed to them, and uncompetitive data centers will also go out of business. This is simply a case of market forces in action, and it's healthy. I really doubt home miners will be able to maintain a significant share of the total network hash rate and unfortunately this may lead to more centralisation. Mining has become a business, and the rational thing for miners to do is to sell off all their bitcoins. Companies can also speculate in BTC, but these are really two independent business processes. There will be no return to the golden age of accumulating coins cheaply through home mining, just as there will be no return to GPU or CPU mining, no matter how much angry people with financial decisions that didn't pan out complain about it. There's no such thing as an indefinite free lunch, if you want to earn money you have to do something for it: perform competitively priced labour, bear financial risk, or save some money.
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you never know. if bitcoin falls enough--it will get to a point where these companies with big farms will have to turn off the power.
Some of their power and the same goes for home miners. If they still have an edge on energy prices I don't see how home miners could hope to regain much "market share". I imagine there are some limited advantages that home miners have such as "free" space to store the mining hardware rather than a data center which costs money to run / rent, but only in small amounts. |
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hopefully it become very unprofitable--that way the corp farms stop mining the shit out everything
Industrial mining isn't going to go away, and home mining is likely on its way out, just as happened with CPU mining and GPU mining. Just the free market in action. You can't just make free money forever. |
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It maybe small earnings, but home miners that are in the community would plug in, to support the Bitcoin network once the large scale miner shuts down.
I doubt all large scale miners would shut down. A few, perhaps even many would shut down, but the most efficient ones would survive, perhaps running well below capacity. I don't see how home miners could ever hope to recapture a large share of the network hashing power, unless the PoW algorithm is changed. |
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If difficulty decreases to the point that you could earn a few BTC's, why wouldn't you plug back in?
It isn't just a function of difficulty and price, large miners have economies of scale that a home miner cannot beat. Lower energy costs, volume discounts or internal production, larger amounts of old hardware to switch back on. |
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I could easily see difficulty drop in the not so distant future, once electrical and operation costs exceed miner earnings for the large mining farms.
The big boys will be forced to shut down or scale operations, we'll see a negative difficulty jump, network hash rate will flat line or lower, and the home miners will jump in again to confirm the transactions.
Could easily see this cycle happen around 2015-2016, probably closer to the halving.
The bolded part is the only thing in this post that strikes me as improbable. Why would home miners jump back in? |
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as it drops in price I will buy more as I feel it will be around a long time.
Same here. I'm still accumulating slowly as it is, but if the price should drop to $100 I'd buy an additional 10 straight away, 100 if it dropped to $10 and 1000 if it dropped all the way to $1. |
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My mining days are shrinking and I am going the buy and hold route more then ever.
And that is part of the reason why miners selling off all their BTC will not drag the price all the way to zero. If the price drops by enough, even existing holders of BTC will be happy to buy up all additional coins that come on the market. It certainly won't drop below $10 (at least not on account of miners alone), probably not below $100 and it wouldn't surprise me if even $200 proved a firm and unbreakable support. Once the price stabilises, the global hash rate will adapt to the rational level given that price. |
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I don't think the miner developers are in a bad position at all, I expect retail mining to disappear and mining companies to mine with their own hardware and also sell hardware wholesale to data center operators. They've already made the investments necessary, now they only have recurring costs to deal with. They have their mask sets, now they can cheaply order new wafers every now and then.
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The mnemonic passphrase is not stored automatically and it is never stored in cleartext.
If you enable 'Quick access' a random password of 256 bit is created to encrypt the mnemonic passphrase, keep the encrypted mnemonic passphrase copy in local storage, send the password to the server to keep and return against correct PIN, destroy the password locally.
It is considered not feasible to brute force a 256bit random AES key encrypting a piece of data.
The server deletes the password after 3 wrong attempts (and the client deletes the encrypted local copy given a chance) - either way without the server password the encrypted mnemonic is unusable.
Does this clarify?
Yes, thanks! We would never encrypt a mnemonic passphrase with a 4 digits PIN - that's just, nuts, to put it mildly.
I figured as much... |
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As mentioned early, it is quite secure, if you use a 4 digits PIN there are 10000 possibilities and only 3 chances. And you can use much longer PINs. Remember, even if the mnemonic passphrase is compromised that is not enough to steal your funds as long as your two factor authentication is also not compromised.
If you are not using a hardware wallet, is the encrypted mnemonic stored? If so, a 4 digit PIN should be trivial to crack since with overwhelming probability only one of the 10000 combinations will yield a valid mnemonic. I assume you use a different method, but it would be good to be sure and to know some of the details! |
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Yes. The only defense is a sheer expense of doing that attack. Also note that attacking time over a significant period would also attack the difficulty, so the stupid attacker (speeding up the time) will actually attack itself through the difficulty increase.
There's some sort of additional sanity check, a valid block cannot have a timestamp that is off by more than two hours from the median of the last ten blocks or something like that. |
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Tragedy of the commons. They are NOT cooperating.
Having your ass handed to you by your competitors doesn't count as a tragedy of the commons. |
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If you can't mine and hold, you need to get out.
If you want to hold and it's cheaper to buy than to mine, then the rational thing to do is to buy. If mining is cheaper, then mining and selling off the proceeds is the rational thing to do. The two processes are independent. You can always buy however much you intend to hold with the proceeds of mining. |
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