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September 26, 2013, 08:51:41 PM |
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We have coined a new word in the LBTC dictionary "drop off". This term is free to be used as a term generally and doesn't have to be locked into the LBTC project (currently under NDA's/NCA's), can be used anywhere for the service of bitcoin.
Drop off is a concept of where you equipment produces a workable income. 1 cent or above or whatever is your mental level of what is a unit (fiat currency) and continuing/not continuing and the point when it doesn't produce anything even though mining for days, weeks, etc.
Drop off will happen with all equipment gradually.
With CPU's, mining worked some time ago. In fact LBTC done lots of tests with CPU mining and at the time was just coming close to drop off.
Drop off happens because of technology. As you know things never stand still and there is an essence of growth and advancement.
Another factor that effects the most part of drop off is halving of earnings every 4 years. This is tied in with bitcoin technology and we don't control this, it happens automatically (last one was ? December 2012 ?).
PPS rates also effect drop off as they continue to decrease.
As new equipment comes out, older equipment becomes outdated.
The current drop off levels are:
CPU's (droped off)
GPU's (lower ends already droping off)
FPGA's
One thing that will go up in a sense is PPS rates. Why when they go down?
There is a difference between what is happening. On one level we finding "new gold", but at the same time more and more transactions allows more "what's on the surface to be worked with" as such even though there will be a decrease, as long as acceptance of bitcoins increases globally, it will find a minimum level where will begin to rise, likely much more than all the mining that has been done.
There is a little protection in mining drop off with ASIC's above what the average Joe is willing to spend. When it becomes professional, then drop off will happen less and less.
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