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Author Topic: Growing your hashrate faster than the network  (Read 3683 times)
crazyates (OP)
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October 27, 2013, 02:14:03 PM
 #1

The current difficulty is ~100x what it was a year ago.

My personal hashrate is ~100x what I had a year ago.

I'm earning about the same BTC as I was a year ago.

I bought more ASICs last week, so my hashrate will double by monday.

The difficulty could very well double by Thanksgiving.

I'll still be earning the same BTC next month as I was at this time last year.

Back 6 months ago, it was very easy to increase your hashrate at a rate larger than the network.

This meant you were earning more.

The difficulty is increasing so fast, it makes this impossible to do. I can't increase my hashrate by 40% every week.

When do you think the difficulty will level off, allowing people to actually grow their operations, rather than just playing catchup?

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oxoa
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October 27, 2013, 02:34:26 PM
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Do you always ROI? are you able to save BTC?
navigator
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October 27, 2013, 06:45:49 PM
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Currently it cost my BFL single ~$7 in electricity to generate 1 btc. Next difficulty it will probably cost me around $10. My profit will even out at about 11 Billion Difficulty.

I expect it to level off somewhere around there give or take a few billion if BTC/USD stays the same. It also depends on the efficiency of the other miners and their electric cost. There are too many variables right now to accurately predict when it will level out. If BTC/USD were to double then that means I can keep mining til 22 billion difficulty. There should be a point though where ASIC's are barely profitable, just like GPU's right before the ASIC's started appearing.

It cost me about $.55/day to run my single. That's $200 per year. So when it takes me 1 year to produce 1 btc and btc is at $200, I might think about turning it off.

It's really hard to predict anything in the bitcoin world out past 3 months. It's still too early in the game to predict the leveling off point, or how it will happen exactly. We could level off for a few months and no one purchases anymore ASIC's, then BTC could suddenly double in price and well, the network can now support double the ASIC's so people start buying again.

No one really fucking knows dude Huh The only way we can guess is if we take in enough variables to make a prediction. Who's got time for that?


P.S. If you would like to get rid of a low performing unit to an old timer for slightly above what you think is market value, it would make my lonely single very happy!
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October 27, 2013, 08:05:26 PM
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When do you think the difficulty will level off, allowing people to actually grow their operations, rather than just playing catchup?

Never? everytime someone adds to their hashrate, they are diminishing someone elses. If you grow your operation you will shrink someone elses, they will in turn grow theirs to make up for their loss, thus shrinking yours again. Cry
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October 27, 2013, 08:16:14 PM
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When one of the mining companies waits until Gen2 units start flooding the market and strategically jumps to Gen3, gambling on the extra delay (the same way Sony did with the PS3) and hopefully succeeding with superior hash/$ options.

BTCitcointalk 1%ers manipulate the currency and deceive its user community.
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October 30, 2013, 04:13:47 AM
 #6

If you keep growing your hashrate you are not going to ROI on any acquired gear as the difficulty increases at a faster rate.  How much could you spend to keep hashing and be profitable?

In this case, you are more likely sending cold hard cash to ASIC sellers than really making a profit. 

Take all of your investment and pour it into BTC and you won't need to keep up with the mining arms race.
TheDragonSlayer
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October 30, 2013, 08:58:40 AM
 #7

The current difficulty is ~100x what it was a year ago.

My personal hashrate is ~100x what I had a year ago.

I'm earning about the same BTC as I was a year ago.

I bought more ASICs last week, so my hashrate will double by monday.

The difficulty could very well double by Thanksgiving.

I'll still be earning the same BTC next month as I was at this time last year.

Back 6 months ago, it was very easy to increase your hashrate at a rate larger than the network.

This meant you were earning more.

The difficulty is increasing so fast, it makes this impossible to do. I can't increase my hashrate by 40% every week.

When do you think the difficulty will level off, allowing people to actually grow their operations, rather than just playing catchup?

Stop chasing the network hashrate when you can have better investment investing in BTC Smiley

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