Bitcoin Value

[thenewb]

Hello Board,

My 230g miner is doing great, I got $110 in 2-days... Anyways, I had a question, does it get more difficult to mine bitcoin if the value goes up and vice versa if it goes down?? In otherwords, if the value of bitcoin was 80 rather than 800 would I have $11 now?

Thanks,
Noob

[1714987802]

1714987802

[1714987802]

1714987802

[grany]

When the dificulty is growing you will mine less btc, if it is decrasing you will mine more, the value of btc is changing - if you mined 1 btc, you have now +/- 905 usd

[thenewb]

Ok so the value of bitcoin has nothing to do with the difficulty? How do they determine difficulty? By the amount of miners that are working in terms of Hash power?

[HELP.org]

Ok so the value of bitcoin has nothing to do with the difficulty? How do they determine difficulty? By the amount of miners that are working in terms of Hash power?

Yes.  If the price goes up/down some people may turn on/off mining equipment due to the profitability and electricity costs so it may indirectly affect the difficulty.

[DannyHamilton]

Ok so the value of bitcoin has nothing to do with the difficulty? How do they determine difficulty? By the amount of miners that are working in terms of Hash power?

Difficulty is determined based on how quickly the previous set of 2016 blocks were solved.  Every 2016 blocks, every client, miner, and mining pool calculates the amount of time it took for those 2016 blocks to be solved.  If it took less than 20,160 minutes, then difficulty is increased proportionally.  If it took more than 20,160 minutes, then difficulty is decreased proportionally.

[paddox]

I was wondering how this worked and your explanation was clear and easily understandable. Some of the websites I have been looking at could take lessons ffrom you. They were as clear as mud about how difficulty adjustments work.

I am also surprised one person can still successfully mine bitcoins. I thought it required a giant bank of super computers nowadays. I read that ordinary people would find it impossible to mine bitcoins this year because of all the big pools beating them bfore any block.

[odolvlobo]

I am also surprised one person can still successfully mine bitcoins. I thought it required a giant bank of super computers nowadays. I read that ordinary people would find it impossible to mine bitcoins this year because of all the big pools beating them bfore any block.

Anyone can mine bitcoins. The amount of bitcoins you mine depends on the hash rate of your equipment and the difficulty. The issues with profitability are the costs of mining -- the cost of the equipment and the cost of electricity. These days, buying an ASIC and mining with it is not profiitable because the equipment is too expensive or you don't receive the miner until the difficulty has gone way up, and mining with a graphics card is not profitable because the electricity costs more than the card will mine. Established miners might be able to get some deals on ASICs so that they continue mining at a profit, but it is difficult for everyone else to make a profit right now.

Unless you are mining solo, your are not competing with pools, because you are part of a pool. Also, the biggest pool doesn't get all the blocks. The number of blocks they get is proportional to their hash rate. Even a small solo miner will get a block occasionally.

[motatoys]

difficulty always goes up pretty much so expect to make less and less

[bctmasterer]

Bitcoins value is based on the need to trade and market volume and distribution (confidence).

Hind sight makes bitcoin look like an investment, giving a different view point to its value (speculation).

[jonanon]

Hello Board,

My 230g miner is doing great, I got $110 in 2-days... Anyways, I had a question, does it get more difficult to mine bitcoin if the value goes up and vice versa if it goes down?? In otherwords, if the value of bitcoin was 80 rather than 800 would I have $11 now?

Thanks,
Noob

To answer your question, presuming all variables are the same except the value of BTC in USD, you would end up with the same amount of BTC and could change it at the current exchange rate at the time.

You should be thinking about how much BTC you generate, not its value in USD.