Mining Namecoins is now 2x more profitable than Bitcoins

[evlew]

edit: started new topic

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[mjoz]

Not necessarily. Before the diff lowered namecoin value was lower than it is now. There is no guarantee value will go up at higher diff. It's the same with Bitcoin.

I am betting that a month or two without any significant amount of nmc generated will put upward pressure on the price.  But you may be right.

[tysat]

Not necessarily. Before the diff lowered namecoin value was lower than it is now. There is no guarantee value will go up at higher diff. It's the same with Bitcoin.

I am betting that a month or two without any significant amount of nmc generated will put upward pressure on the price.  But you may be right.

It went down almost the entire time this happened last time.

[grod]

Exactly right.  The diehard NMC miners were happy to mine at 25-40% discount to bitcoin for many, many weeks before difficulty adjusted.

There's no guarantee it'll shoot back up to an expected .04 btc/nmc exchange to reach parity. You might see the same old same old .033 at best, like we did leading up to the 2 days of profit bonanza.  NMC miners are eager to give away their mining power during the slow times, and who am I to argue?

Last time I got in during a difficulty slump, mined, and did not sell at .6 (the high point during the mining "boom").  I've been sorry ever since.   I did get out at .033, and will try to time my exit during the "slump" once again.  Of course I'll mine for 1-3 days every 6-10 weeks when it's profitable, and not at all when it's simply stupid.

[Iyeman]

Exactly right.  The diehard NMC miners were happy to mine at 25-40% discount to bitcoin for many, many weeks before difficulty adjusted.

There's no guarantee it'll shoot back up to an expected .04 btc/nmc exchange to reach parity. You might see the same old same old .033 at best, like we did leading up to the 2 days of profit bonanza.  NMC miners are eager to give away their mining power during the slow times, and who am I to argue?

Last time I got in during a difficulty slump, mined, and did not sell at .6 (the high point during the mining "boom").  I've been sorry ever since.   I did get out at .033, and will try to time my exit during the "slump" once again.  Of course I'll mine for 1-3 days every 6-10 weeks when it's profitable, and not at all when it's simply stupid.

Someone has to get through the blocks to keep namecoins alive...

[grod]

And here is how that's done.

1. mine bitcoins
2. buy namecoins

Namecoins reach price/difficulty parity with bitcoins (or close enough), and long term stability ensues.

Here is how it's NOT done:

1. mine namecoins regardless of loss
2. subsidize a 2 day profit bonanza for people who mine in 2 days what you will mine in the following 40

But hey, free money is free money.  I'll take it.

[Iyeman]

you assuming everyone that mines is selling asap...you can not assume we are mining at a loss just because the price during the slow difficulty is low...Just like with my real job I dont spend everything i make as soon as i get paid.  a portion goes into savings/investments.  Holding on to NMC is an investment for me. now NMC may never go up in price like btc did a few months back but you never know it might. and then I will have been mining at more of a profit than you are right now by selling immediately.


But then long term investments take patients, and seems a lot of folks these days don't know what that is.

Example, a year ago BTC was what a dollar? and people were making profit off that, imagine they held on to all the btc they generated for 10-12 months the profit would have increased 13-20 fold (or higher depending on when they caught that market spike)...

[doublec]

you assuming everyone that mines is selling asap...you can not assume we are mining at a loss just because the price during the slow difficulty is low...Just like with my real job I dont spend everything i make as soon as i get paid.  a portion goes into savings/investments.  Holding on to NMC is an investment for me.

grod's point is if you mined bitcoins instead, and bought namecoins with those  bitcoins, you'd end up with more namecoins than if you mined them. In addition the price would rise, helping to reach the magical ratio that causes bitcoin miners to join or leave the network, making the difficulty more likely to be stable.

[Starlightbreaker]

got my 1st block confirmed, still waiting for the other 4 to even show up on my address.


aw hell.
this is taking too damn long. 

[Oldminer]

got my 1st block confirmed, still waiting for the other 4 to even show up on my address.


aw hell.
this is taking too damn long. 

Yea I've heard a few people query this slow process...not sure where the problem lies though as I've not seen anyone bother to give an answer on it..

[doublec]

Yea I've heard a few people query this slow process...not sure where the problem lies though as I've not seen anyone bother to give an answer on it..

it's the same as bitcoin. It takes 120 confirmation for a block to mature.

[bcpokey]

People are just impatient and used to pools with instant payouts. Solo mining is a bit different, and quite frankly it's a lot faster on namecoin due ot the crazy ass high rate of block turnover. 30 blocks / hr = 4 hours to mature. A bitcoin block would likely take 20 hours, if I understand it correctly.

[Bitcoin_Silver_Supply]

That exchange rate is holding nicely despite the mining flood, I'm a tad perplexed.

[marcus_of_augustus]

Hoping to see Blitzboom pimping namecoin buying so vigourously as he does for mining when it is more economic to buy than mine.

- lots of instructions how to set-up trading accounts and swap btc for nmc, etc

Current Mining difficulty ratio NMC/BTC: 0.0139
Current exchange rate NMC/BTC: 0.02700700

Sources:

http://dot-bit.org/tools/nextDifficulty.php
https://exchange.bitparking.com/main

––––

How to mine Namecoins?

1. Download and install Namecoin from http://www.namecoin.us/downloads.php

2. Navigate to %appdata%\Namecoin and create "bitcoin.conf" with the following content:

Code:

rpcuser=anything
rpcpassword=anythingelse
rpcport=8336
daemon=1
server=1

3. Start namecoind via commandline

4. Get GUIMiner, create a "solo" mining profile (mining solo is feasible even for single GPUs at difficulty of only 25k) and fill in the data from your bitcoin.conf file

5. Exchange your gathered Namecoins for more Bitcoins than you could have mined directly with the same hardware on https://exchange.bitparking.com/

6. PROFIT

[coblee]

That exchange rate is holding nicely despite the mining flood, I'm a tad perplexed.

Same here. People are mining namecoins like crazy... a block every 2 minutes. I'm sure most of these coins are dumped on the exchange to trade for bitcoins. How is the exchange rate rising? Where did all this new demand for namecoins come from?

[stellan0r]

as soon as the diff rises in 2 days, the theoretical exchange rate would be at 0.0556 (http://dot-bit.org/tools/nextDifficulty.php). even if it doesn't rise that much, you could probably still make profit when you buy now as much as you can and then wait 2-3 weeks to sell.

or the price drops again and you loose a couple of btc

[Iyeman]

you assuming everyone that mines is selling asap...you can not assume we are mining at a loss just because the price during the slow difficulty is low...Just like with my real job I dont spend everything i make as soon as i get paid.  a portion goes into savings/investments.  Holding on to NMC is an investment for me.

grod's point is if you mined bitcoins instead, and bought namecoins with those  bitcoins, you'd end up with more namecoins than if you mined them. In addition the price would rise, helping to reach the magical ratio that causes bitcoin miners to join or leave the network, making the difficulty more likely to be stable.

The only problem with that is people STILL have to  mine in order to process blocks to process those buy/sell's on the exchange.  If everyone was buying the nmc instead of mining, then no new blocks would be processed and everything would sit in limbo as unconfirmed and unspendable/tradeable. 


The people who will really be upset about the 120 confirmations will be those who find the last 50-60 blocks in this difficulty, when everyone leaves us at a 90 something thousand difficulty it will probably take a week to confirm your blocks.

[checkmate]

I joined NMC some minutes ago and I really like it! 

[pennytrader]

I believe I just found a block. I used 1 5830 doing solo mining for less than 12 hours, so I guess I was lucky? (Now I switched to pool mining). Question is how do I know how many confirmation has already happen with it? It already appeared in my wallet.

[Sukrim]

The only problem with that is people STILL have to  mine in order to process blocks to process those buy/sell's on the exchange.  If everyone was buying the nmc instead of mining, then no new blocks would be processed and everything would sit in limbo as unconfirmed and unspendable/tradeable.

The idea is to keep NMC mining as profitable as BTC mining. If the exchange rate is even slightly (let's say 1%) higher than BTC, you can earn 1% more by mining NMC and selling them - something a LOT of people might do and that would be MUCH cheaper for NMC enthusiasts than mining NMC at a 25-40% loss.