Is mining toast?

[ohiofarmer]

I just posted an article on my blog where I quoted the founder of NoFiatCoin as saying he thinks mining is going to go the way of the dodo: http://crypt.la/2014/01/31/eventually-mining-is-going-to-be-dead-and-ripple-will-rule-says-nofiatcoin-xnf-founder/

I agree for the most part, though I could see bitcoin being the exception to the rule (and perhaps litecoin, too). That said, I believe the vast majority of the 500 other altcoins are toast. There's just no way people are going to devote serious computing power to hundreds of different altcoins for years to come. Even using all that power for bitcoin is disconcerting... I wonder if Satoshi would do it the same way if he got to start over again from scratch?

[KWH]

I just posted an article on my blog where I quoted the founder of NoFiatCoin as saying he thinks mining is going to go the way of the dodo: http://crypt.la/2014/01/31/eventually-mining-is-going-to-be-dead-and-ripple-will-rule-says-nofiatcoin-xnf-founder/

I agree for the most part, though I could see bitcoin being the exception to the rule (and perhaps litecoin, too). That said, I believe the vast majority of the 500 other altcoins are toast. There's just no way people are going to devote serious computing power to hundreds of different altcoins for years to come. Even using all that power for bitcoin is disconcerting... I wonder if Satoshi would do it the same way if he got to start over again from scratch?

If it's profitable they sure will.

[ohiofarmer]

If it's profitable they sure will.

Ok. I can't argue with that. +1

I guess when we say "profitable," we've got to think about what currency they'll be getting paid in

[KWH]

If it's profitable they sure will.

Ok. I can't argue with that. +1

I guess when we say "profitable," we've got to think about what currency they'll be getting paid in

Not really as long as it's profit. If I can trade my mud pies for milk and the milk for whiskey and the whiskey for BTC or LTC and I make a profit, I will continue to do so.

[jballs]

thanks, interesting piece.

[jubalix]

yes BTC value via mining in so far as it is inefficient, will be arbitraged out by more energy efficient coins,  normalised for all other properties, hence PeerCoin which takes the best of both worlds minging initially and perhaps a bit later on may confer some advantages of mining, eg distribution and back resilience to Pos if needed. At the other extreme you have NXT.

[hi there]

In a first, NEM coin, a branch of NXT, is trying to give away equal shares of coins to prevent hoarders.

https://bitcointalk.org/index.php?topic=440185

However, as long as crypto currencies can be mined and dumped on the marketplace with enough hype, I suspect it will always be done. However I believe alt currencies are reaching a critical mass where they might end up destroying themselves. The number of clones in just the past week is starting to accelerate. Weeding through the ones with a good team behind them like NEM/NXT takes work.

Hopefully some of these great features that these coins promise like the direct currency trading, data storage, etc. start to actually be used and implemented.

[greenlion]

This article is just shameless altcoin pumping quoting somebody with the most obvious vested interest in pumping the value, nothing to see here.

The statement about mining is so facile it's not even clear where to begin dismantling what this article is saying.

There is literally zero content in this article that has any relevance to anything remotely resembling any kind of actual analysis about the merits of Bitcoin vs. Ripple.

[jballs]

This article is just shameless altcoin pumping quoting somebody with the most obvious vested interest in pumping the value, nothing to see here.

The statement about mining is so facile it's not even clear where to begin dismantling what this article is saying.

There is literally zero content in this article that has any relevance to anything remotely resembling any kind of actual analysis about the merits of Bitcoin vs. Ripple.

Fair enough, but ripple has a place for me as a utility and was not familiar with nfc. Arguments aside, last I checked the global economy is around $50 trillion. That is annual, as measured in transaction ultimately. There is a lot of room for a lit of players. The notion that "there can be only one" is in itself an entirely self serving position. In fact there must be many, else we will have hegemony again.

I dont own ripple but the concept is intriguing, and until bitcoin finds its value it is functionally useless for several of my purposes in the space.

Carry on...

[ohiofarmer]

There is literally zero content in this article that has any relevance to anything remotely resembling any kind of actual analysis about the merits of Bitcoin vs. Ripple.

I do think Reyes is making the point that the ripple (as a protocol) has more utility because you can use it to transfer almost anything of value. His own currency (XNF) trades on ripple, but he also mentioned stocks and bonds. I think we're in the very earliest stages of seeing what starts trading on ripple exchanges... It's going to be pretty impressive.

[elavenil]

IS mining other crypto currencies is still profitable?

[cryptomining]

IS mining other crypto currencies is still profitable?

yes

[minerpart]

The general asset class value of BTC is directly related to the expense of the resources needed to mine it. If you could mine gold or diamonds with a $10 shovel in your garden those commodities would devalue as the ease of mining meant the supply of gold and diamonds would shoot up.

[VforVictory]

The general asset class value of BTC is directly related to the expense of the resources needed to mine it. If you could mine gold or diamonds with a $10 shovel in your garden those commodities would devalue as the ease of mining meant the supply of gold and diamonds would shoot up.

Yet, back then, they used cheap shovels to mine...and the price still went up.

[greenlion]

The general asset class value of BTC is directly related to the expense of the resources needed to mine it. If you could mine gold or diamonds with a $10 shovel in your garden those commodities would devalue as the ease of mining meant the supply of gold and diamonds would shoot up.

Labor theory of value has always been wrong.

[acoindr]

Ripple will rule? How much Ripple currency is there? Apparently there is no way to check, so the owners could have trillions for themselves.

[slevadon]

Most alt currencies are still profitable for miners... there are sites to calculate profits 

[Prolifik]

Altcoin mining will be profitable until hash rate goes up too much.
However the price of coins seems to be pretty well attached to difficulty so that might not happen.

[krone9]

I don't know if this is very elegant design (having not read the Satoshi original design doc) but mining should never be "toast"

Mining has to stay profitable as I understand it - at least whilst there are still coins. Purely because if it becomes too difficult to make money, people stop mining, the difficulty decreases and it becomes profitable again.

I also believe there is a future for alt coins - whilst people/organisations have different scales of mining capabilities, and exchanges to trade up to whatever coin, then there is a role for alt coins for lower scale miners to still mine cryptocurrency

Ripple on the other hand is just.....horrible....

[jballs]

I don't know if this is very elegant design (having not read the Satoshi original design doc) but mining should never be "toast"

Mining has to stay profitable as I understand it - at least whilst there are still coins. Purely because if it becomes too difficult to make money, people stop mining, the difficulty decreases and it becomes profitable again.

I also believe there is a future for alt coins - whilst people/organisations have different scales of mining capabilities, and exchanges to trade up to whatever coin, then there is a role for alt coins for lower scale miners to still mine cryptocurrency

Ripple on the other hand is just.....horrible....

Two questions. Why has bitcoin difficulty never dropped? According to the blockchain chart, i dont mean short run. Its pretty much a parabola.

And why is ripple horrible. I need an exchange based platform to do business with. I am pretty naive on the details so what does work. Bitcoin dont work because i cannot hedge price risk. Ripple looks like the right thing but the hate is widespread so can give me your two cents on why i shouldnt go that route and where to go instead?