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Author Topic: Namecoin mining nearly as profitable as Bitcoin mining now  (Read 4128 times)
imperi
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July 04, 2011, 03:10:54 PM
 #1

http://tvori.info/bitcoin/charts/


Each 100 MH/sec would give you 0.07292715 BTC/day. At rate $15.010 per BTC this gets you $1.0946/day
After next difficulty update - 0.06341688 BTC/day and $0.9519/day

If you decide to go after Namecoin instead, the numbers would look as following:
1.79990022 NMC/day, 0.0350 NMC/BTC ($0.5257 per NMC), and $0.9461/day.
After next Namecoin diff update: 3.86236812 NMC/day and $2.0303/day.
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PcChip
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July 04, 2011, 03:13:50 PM
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Last time I checked you had to first trade namecoins for bitcoins, and then trade bitcoins for dollars.  So there's a bit more work involved

All rates with Phoenix 1.50 / PhatK
------------------------------------------------------------------------------------------------------------------------------
5850 - 400 MH/s  |  5850 - 355 MH/s | 5830 - 310 MH/s  |  GTX570 - 115 MH/s | 5770 - 210 MH/s | 5770 - 200 MH/s
grod
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July 04, 2011, 04:29:49 PM
 #3

Key point: after next namecoin difficulty.  We're all waiting for that, the only ones mining at the CURRENT difficulty are patsies (and in fact, I have no idea who is mining now and why.)

It's like this.  Current namecoin difficulty:  55883  Current bitcoin difficulty: 1379223.  Dividing bitcoin difficulty by namecoin difficulty gives you .04, which, plus an exchange fee % should be what a namecoin trades at to *BREAK EVEN* with bitcoin. 

In other words, anyone mining namecoins right now as opposed to mining bitcoins and exhanging them forbitcoins is giving away *25 %* of their computing power.  It's just silly.  Most of us realized this, and bailed on namecoin when the difficulty went from 15k to 55k and the price dropped from .07 to .03.

At the moment we're looking at about 1 block/hour network rate on the namecoin network.  In another 905 blocks (or about a month if people keep mining at a loss, possibly longer) is when the difficulty will drop to about 5k or so.  *THAT* is when it will be profitable to mine namecoin, not before. 

TL;DR nice try.



Sukrim
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July 04, 2011, 04:46:31 PM
 #4

To really kick Namecoin into action you'd need someone with a few hundred BTC who buys up all offers on the Namecoin exchange up to ~0.05 and also keeps buing up for a few days every offer below that (manually, as dark pools are not possible there and putting up a huge buy offer would eb a bit too much in the open).

This could create the next namecoin bubble and might even win this person quite a lot of profit by playing the market like that (the namecoin exchange is much easier to game than Mtgox for example but has a lot of bids + offers as well as quick and easy money deposit + withdrawal!).

https://bitfinex.com <-- leveraged trading of BTCUSD, LTCUSD and LTCBTC (long and short) - 10% discount on fees for the first 30 days with this refcode: x5K9YtL3Zb
Mail me at Bitmessage: BM-BbiHiVv5qh858ULsyRDtpRrG9WjXN3xf
Fakeman
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July 04, 2011, 04:59:44 PM
 #5

Mining NMC and exchanging immediately for BTC at this time is indeed counterproductive, but mining and holding at the current (easy) difficulty makes sense if you expect prices to continue recovering.

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grod
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July 04, 2011, 05:06:44 PM
 #6

Mining NMC and exchanging immediately for BTC at this time is indeed counterproductive, but mining and holding at the current (easy) difficulty makes sense if you expect prices to continue recovering.

Why would you do this?  You'd be giving up 20-25% of your computing power.  If you want namecoins then mine bitcoins, exchange them for namecoins -- you get more namecoins for the same computing power per day.  Plus that may nudge the exchange rate in the right direction making your investment more likely to return higher.

That's what those of us not into giving away 25% are doing, and you're welcome.



Fakeman
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July 04, 2011, 05:25:08 PM
 #7

I guess I misinterpreted the "instant" difficulty of 17894.08 at http://dot-bit.org/tools/nextDifficulty.php, so you are saying that's a prediction too? If "Instant" and "Next" are both predictions then what's the difference?

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grod
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July 04, 2011, 10:18:20 PM
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Instant is what the difficulty would be if the instant's computing power was the average over the timespan of 2016 blocks.  Predicted also looks at previous computing power since the start of the block to guestimate the coming difficulty. 

Instant is higher grained and gives you a better idea of how many many are optimistic or pessimistic right this second.
smoki
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July 05, 2011, 10:07:29 AM
 #9

Current break-even point, including NMC-BTC exchange fees, would be ~0.0407 BTC/NMC. The exchange rate is currently ~0.038, so that's only a 7% difference.
BTC difficulty increases tomorrow (about 15%), so if BTC/NMC price holds, NMC mining will be slightly more profitable.

19Wsi1QNn7A9YHwbQsjXz4tWxdu72HQ8zM (just in case Smiley)
CNMOH
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July 05, 2011, 12:46:31 PM
 #10

Mining NMC and exchanging immediately for BTC at this time is indeed counterproductive, but mining and holding at the current (easy) difficulty makes sense if you expect prices to continue recovering.
Prices will drop after the next difficulty decrease, as people will realize that Namecoin miners are being paid twice as much as Bitcoin miners and will therefore be willing to pay less per Namecoin. Investing in Namecoins is not reasonable at this moment.

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July 07, 2011, 09:54:52 AM
 #11

We'll what happens with Namecoin.
I think Namecoin and Bitcoin are strong together!

regards, talpan
nuke
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July 07, 2011, 11:13:04 AM
 #12

So, do you think Namecoin Price is going to drop? I'm tempted to sell mine to buy them again later.
What happened when BTD difficulty went down?

CIAO!
Manko
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July 07, 2011, 11:52:40 AM
 #13

So, do you think Namecoin Price is going to drop? I'm tempted to sell mine to buy them again later.
What happened when BTD difficulty went down?

I reckon there will be a surge in price, as there was during the last NMC mining rush. Then I will sell all my NMC. After that, who knows what will happen.

My guess is that come the 13th, and the decrease in NMC mining difficulty, miners will flock to the NMC side, thus catapulting the difficulting upwards.

Most of us will be over there on the NMC side for a week or so, then start to come back as the difficulty gets too high again.
nuke
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July 07, 2011, 12:02:17 PM
 #14

Hum, why a surge and not a drop?
After all the people switch to NMC, most of them will do it to have BTC, so more sellers than buyers.
In this scenario the price should drop to 0.02 or less.

Am I right?

CIAO!
Chucksta
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July 07, 2011, 12:28:24 PM
 #15

When I started mining NMC they were going for 0.0065 each, then there was a major rush of BTC miners switching to NMC mining, and the price went up to over 0.1 per NMC in a matter of days. Then dropped and held at 0.06 for a long time. I bet that happens again.




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