Bitcoin Forum
May 11, 2024, 05:52:44 AM *
News: Latest Bitcoin Core release: 27.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Mining depreciation queston...  (Read 5081 times)
inoob (OP)
Newbie
*
Offline Offline

Activity: 31
Merit: 0


View Profile
March 03, 2014, 06:16:51 PM
 #1

When pool mining, as the difficulty rate gets higher, will the "Rewards per Round" drop off, or will the frequency of completed rounds, drop off?

Bitcoin mining is now a specialized and very risky industry, just like gold mining. Amateur miners are unlikely to make much money, and may even lose money. Bitcoin is much more than just mining, though!
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
1715406764
Hero Member
*
Offline Offline

Posts: 1715406764

View Profile Personal Message (Offline)

Ignore
1715406764
Reply with quote  #2

1715406764
Report to moderator
hurricandave
Legendary
*
Offline Offline

Activity: 966
Merit: 1003



View Profile
March 04, 2014, 04:12:44 AM
 #2

The point of increasing difficulty is to s..l..o..w down the collective network hash rate. The frequency of completed rounds should get longer because more shares have to be completed to finish an entire "block" which still only pays say 25 BTC + transaction fee. Most pools reduce the BTC paid "per share" to continue dividing the 25 BTC among the increased number of shares. If you don't increase your miners hash rate or your "collective" hash rate of miners contributing to "your" pool worker - you will see a small reduction in number of shares you earn per given time period as well as a reduction in total BTC earned for each "share" of your work - each time the Network Difficulty increases.
inoob (OP)
Newbie
*
Offline Offline

Activity: 31
Merit: 0


View Profile
March 08, 2014, 03:16:34 AM
 #3

The point of increasing difficulty is to s..l..o..w down the collective network hash rate. The frequency of completed rounds should get longer because more shares have to be completed to finish an entire "block" which still only pays say 25 BTC + transaction fee. Most pools reduce the BTC paid "per share" to continue dividing the 25 BTC among the increased number of shares. If you don't increase your miners hash rate or your "collective" hash rate of miners contributing to "your" pool worker - you will see a small reduction in number of shares you earn per given time period as well as a reduction in total BTC earned for each "share" of your work - each time the Network Difficulty increases.

Thank you Dave. I appreciate the detailed response, in helping me better understand this. You're awesome!
Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!