Bitcoin Forum
December 11, 2016, 12:24:49 AM *
News: Latest stable version of Bitcoin Core: 0.13.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: « 1 [2]  All
  Print  
Author Topic: Huge jump in network hash power  (Read 6018 times)
Dude65535
Full Member
***
Offline Offline

Activity: 126


View Profile
February 19, 2011, 01:17:25 AM
 #21

It does absolutely not make sense timing bringing up capacity online. The most optimal strategy is to mine as soon as possible. A mined block is worth more than the loss resulting from difficulty increase of one's mining in the next round.

That would depend on how much computing power you were going to bring online and how long till the next difficulty increase.

1DCj8ZwGZXQqQhgv6eUEnWgsxo8BTMj3mT
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1481415889
Hero Member
*
Offline Offline

Posts: 1481415889

View Profile Personal Message (Offline)

Ignore
1481415889
Reply with quote  #2

1481415889
Report to moderator
1481415889
Hero Member
*
Offline Offline

Posts: 1481415889

View Profile Personal Message (Offline)

Ignore
1481415889
Reply with quote  #2

1481415889
Report to moderator
1481415889
Hero Member
*
Offline Offline

Posts: 1481415889

View Profile Personal Message (Offline)

Ignore
1481415889
Reply with quote  #2

1481415889
Report to moderator
marcus_of_augustus
Legendary
*
Offline Offline

Activity: 2100



View Profile
February 19, 2011, 04:33:33 AM
 #22


Precisely.

Raulo
Full Member
***
Offline Offline

Activity: 238


View Profile
February 19, 2011, 09:38:19 AM
 #23

It does absolutely not make sense timing bringing up capacity online. The most optimal strategy is to mine as soon as possible. A mined block is worth more than the loss resulting from difficulty increase of one's mining in the next round.

That would depend on how much computing power you were going to bring online and how long till the next difficulty increase.

No, it's not unless we are talking about some crazy scenarios that someone increases the difficulty by so much (say 20-fold) that next round mining brings less income than electricity.

Each block you mine in the round n will lower your mining output by 1/2016*(your_hash_speed_next_round/global_hash_speed_next_round)*2016=(your_hash_speed_next_round/global_hash_speed_next_round) in round n+1 due to difficulty increase resulting from getting this particular block sooner. And this number is always less than 1 because your hash speed is lower than the global hash speed. So it is always (without taking into account electricity costs) worth mining a block without worrying about the next difficulty increase.

In a less abstract example, suppose, you have 10% of the total capacity. You bring it online just after the difficulty increase. You mine 10% of 2016  = 201.6 blocks.Suppose you could have entered online sooner, at 80% of the previous round where you had 13% of the capacity. You mine 0.13*0.2*2016=52.4 blocks. It increases the difficulty by extra 2016/(2016-52.4)=2.7%. You mine next round 201.6/1.027=196.3 instead of 201.6. Net gain of 52.4-(201.6-196.3)=47.1 blocks.

1HAoJag4C3XtAmQJAhE9FTAAJWFcrvpdLM
John1357
Newbie
*
Offline Offline

Activity: 10


View Profile
September 07, 2013, 04:28:03 PM
 #24

excellent
Pages: « 1 [2]  All
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!