Two questions about mining profitability due to bitcoin rise

[staminamylove]

ONE : How it affects the rise of bitcoin value in mining? As bitcoin gets high, it is more profitable with the same hash power? Would be possible then, that if it gets "to the moon" would be even again profitable with GPU mining?

TWO :

If you're wondering why the altmarket is taking a beating, check out the fiat price of BTC.

https://twitter.com/BryceWeiner/status/468948439066501120
I do not understand why bitcoin good going can beat the altcoins, as they all are cryptocurrencies. Is this beating just in short term?

[boraf]

Need to compare capital and operation cost of mining with buying coin directly.


For new and small player, it is cheaper to buy coin directly.

[staminamylove]

Need to compare capital and operation cost of mining with buying coin directly.


For new and small player, it is cheaper to buy coin directly.

I do prefer mining -a kind of production attitude. Still interested to know which is the market mechanism. Which is the science? Anyone knows about any paper/doc that could help?

[odolvlobo]

ONE : How it affects the rise of bitcoin value in mining? As bitcoin gets high, it is more profitable with the same hash power? Would be possible then, that if it gets "to the moon" would be even again profitable with GPU mining?

Most of the cost of ASIC mining is the one-time cost of the equipment. The amount of BTC mined depends on the difficulty, which rises when the price rises. Therefore, a rising price makes ASIC mining less profitable (in BTC terms).

Most of the cost of GPU mining is power and cooling. These costs go down (in BTC terms) as the price rises. Therefore, a rising price can make GPU mining more profitable if the difficulty does not rise as quickly.

TWO :

If you're wondering why the altmarket is taking a beating, check out the fiat price of BTC.

https://twitter.com/BryceWeiner/status/468948439066501120
I do not understand why bitcoin good going can beat the altcoins, as they all are cryptocurrencies. Is this beating just in short term?

The factors driving the prices of each coin are different. There may be some correlation in prices but it is low.

[fatguyyyyy]

theres multiple reasons for me, that I think it`ll rise.

Mining has been killing people who dont have money, so the solo miner even with a great machine is eventually going to leave the mining game.

Which is why alt miners is popular since the cost of the machines and hence of all those crap alt coins.

When less hash rate is out of the system, and its the top who are constantly getting more gear to match it - it also becomes a rare thing because it shows it becomes nearly impossible to find a block.

[Benjig]

I think the time for dabbling and low-end interest is over, really. Going into mining or even trading at this point will result in a loooong time before you see a return on investment is any. You're more likely to just lose a ton of money.

I had a look, weighed up my options and decided that the horse had bolted. There are easier and much more secure ways to make money and unless you were an original miner, this isn't one of the.

[Skele]

ONE : How it affects the rise of bitcoin value in mining? As bitcoin gets high, it is more profitable with the same hash power? Would be possible then, that if it gets "to the moon" would be even again profitable with GPU mining?

TWO :

If you're wondering why the altmarket is taking a beating, check out the fiat price of BTC.

https://twitter.com/BryceWeiner/status/468948439066501120
I do not understand why bitcoin good going can beat the altcoins, as they all are cryptocurrencies. Is this beating just in short term?

Ultimately though, if you're first starting now and have the funds to do it, here's what you'll want...just to get started (and there's plenty in this price and higher that do varying amounts of damage - keeping in mind you need to pay power to run these badboys)

[ranlo]

ONE : How it affects the rise of bitcoin value in mining? As bitcoin gets high, it is more profitable with the same hash power? Would be possible then, that if it gets "to the moon" would be even again profitable with GPU mining?

TWO :

If you're wondering why the altmarket is taking a beating, check out the fiat price of BTC.

https://twitter.com/BryceWeiner/status/468948439066501120
I do not understand why bitcoin good going can beat the altcoins, as they all are cryptocurrencies. Is this beating just in short term?

As the difficulty rises, the amount of coin each MH/s earns is lowered. If you were earning 0.01 BTC/day with your rig now and difficulty went up 100%, you would make 0.005 BTC/day.

Could it be possible at some point for GPU mining to be viable again? Sure. It all depends on whether or not the Bitcoin you earn per day is greater than the cost of your hardware wear and tear/electricity.

[b!z]

If it's not profitable, then stop. Others will continue if it remains profitable for them.

[galbros]

ONE : How it affects the rise of bitcoin value in mining? As bitcoin gets high, it is more profitable with the same hash power? Would be possible then, that if it gets "to the moon" would be even again profitable with GPU mining?

TWO :

If you're wondering why the altmarket is taking a beating, check out the fiat price of BTC.

https://twitter.com/BryceWeiner/status/468948439066501120
I do not understand why bitcoin good going can beat the altcoins, as they all are cryptocurrencies. Is this beating just in short term?

Q1: The rise in price would make mining more profitable.  However, it also attracts more miners, increasing difficulty.  I seriously doubt GPU mining will ever be profitable again as ASICS will always make more bitcoins and if price has gone that high then people will invest in even more ASICS.

Q2: I think the idea is that if BTC price is shooting up you want to sell your altcoins to be in BTC.  But that is just a guess.

Good Luck!

[staminamylove]

Q1: The rise in price would make mining more profitable.  However, it also attracts more miners, increasing difficulty.  I seriously doubt GPU mining will ever be profitable again as ASICS will always make more bitcoins and if price has gone that high then people will invest in even more ASICS.

Q2: I think the idea is that if BTC price is shooting up you want to sell your altcoins to be in BTC.  But that is just a guess.

Good Luck!

So, the difficulty change/increase due to hash mining pointing to the coin. All this makes the question clear to me. Thank you.

[ranlo]

Q1: The rise in price would make mining more profitable.  However, it also attracts more miners, increasing difficulty.  I seriously doubt GPU mining will ever be profitable again as ASICS will always make more bitcoins and if price has gone that high then people will invest in even more ASICS.

Q2: I think the idea is that if BTC price is shooting up you want to sell your altcoins to be in BTC.  But that is just a guess.

Good Luck!

So, the difficulty change/increase due to hash mining pointing to the coin. All this makes the question clear to me. Thank you.

Yes. A good way to think about it is like this:

There are 50 coins per block. There is one person mining, at 10 MH/s. The difficulty is now 10. He earns all 50 coins every block since he mines them all.
Another person starts mining at 10 MH/s. The difficulty is now 2x, or 20. Each person earns around 25 coins per block since, on average, each will get 1/2 of the blocks.