When price of a coin falls, are you able to mine more in a day?

[43index]

New to mining, have been in the stock market world forever.

Hope this question makes sense..... So lets say coin X is currently at $1 and my rig is able to on average mine 100 of those coins per day. If the price of that coin drops to .25 or .50 cents would I expect to be able to mine more than 100 coins per day?

Like in stocks if the price falls by half I can buy twice as many shares with the same amount of money. Just curious if a similar philosophy works with mining.....

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[philipma1957]

No is the short answer.

The long answer is a prolonged price drop will eventually cause difficulty to drop.

But it could take months or longer.

[43index]

So how do miners stay afloat and cover their power costs etc when the market drops and you are still only able to mine the same amount of coins?

[philipma1957]

So how do miners stay afloat and cover their power costs etc when the market drops and you are still only able to mine the same amount of coins?

Well a lot depends on your margins.

Ie if you have 20 cent power and are mining ⛏ you will be in the red and may have to sell your gear.

but if you have 3 cent power you should be good to go.

a s19 pro burns 3300 watts an hour or 3.3 x 24 about 80 kwatts a day.

so at

3cents $2.40
4cents $3.20
5 cents $4.00
10 cents $8.00
15 cents $12.00
20 cents $16.00
25 cents $20.00
30 cents $24.00
35 cents $28.00

it earns 110 x .27 = $29.70

so  if  you do the math 🧮 you can figure what your margin of profit.

we were terrible in June 2020

 we could go back to june levels but they are the exception.

just as high profits are the exception.

[43index]

Thanks for all the insite. I am getting into mining not necessarily for the purpose to mine and then turn right around and sell the profits. My thought process is accumulation of various coins in numbers. I was fortunate to buy DOGE when it was at .05. It will be more of a hobby for me and an investment that may pay off down the road. After all, most coins start super low and go up over the years. Thoughts on my thinking?

[philipma1957]

Thanks for all the insite. I am getting into mining not necessarily for the purpose to mine and then turn right around and sell the profits. My thought process is accumulation of various coins in numbers. I was fortunate to buy DOGE when it was at .05. It will be more of a hobby for me and an investment that may pay off down the road. After all, most coins start super low and go up over the years. Thoughts on my thinking?

Okay this section is only for bitcoin not other coins.

As for other coins many fail. I would think more coins fail then you would think.

[xonar2]

Difficulty might take much longer to drop than you think. Why?

Because there are miners who are also mining at nearly zero cost or for free, by exploiting free electricity (stealing) or other methods such as infecting machines with GPU's to mine for them (also $0 cost).

Network difficulty *will* drop if the price falls so low mining honestly at current rates is no longer profitable, but like said in this topic already that could take months because not everyone even has any costs.

There are also other factors to consider: There are also miners with stolen hardware *and* free energy (stolen or otherwise).
So these people can mine no matter what and keep dumping more coins on the market no matter the price.

[NotFuzzyWarm]

Hope this question makes sense..... So lets say coin X is currently at $1 and my rig is able to on average mine 100 of those coins per day. If the price of that coin drops to .25 or .50 cents would I expect to be able to mine more than 100 coins per day?

You are talking about altcoins and they are VERY different things vs Bitcoin. So different that they have their own areas in the Forum. (edit: This was originally posted in Bitcoin area & moved by mods)

Bitcoin is hard coded to on average find 1 block every 10 minutes. Price of the coin makes no difference as difficulty is recalculated roughly every 2 weeks so if number of miners changes radically the diff will also change to bring the find rate back to 1 every 10min.

[Gorosden]

It's only when difficulty falls you will be able to mine more in a day and difficulty of a PoW coin don't just falls without a tangible reason, price isn't what gives you more quantities of coins when mining

[Bitbtc8]

Assuming we are in bear market and you are thinking about building a mining rig there is advantage to this

1. You will get mining equipments for cheaper price e.g 2500$ can get you 5 gtx1660 right now but in bear market cards will go back to normal, 2500$ can get you 10x 1660 GPUs

2. Mining difficulty will reduce because some people only build rigs and mine in bull season only so you will get more quantities of the coins but value will be lower in USD

I hope this helps

[Metroid]

No, when the price rises more hashrate less profit and when price crashes, hashrate the same or even more and less profits, so all in all profits will always be less and less from here on for miners, the golden time is gone, now is only struggle everyday and soon as the bear market hits --> pain, nightmares, remorse and regret of why you did not sell it when the price was high. The funny thing is, eth holders will not sell now, they think the price will return to 4300 usd, they want to sell at top but if eth rises to 4300 usd again then they will not sell hehe because they think it will go higher, see this is a mind game. Truth is, you only take profit once you sell your mined coins.

[badbart]

I've mined with 150 gpus from 2016 until today.  I make all my buys of gear when the markets are "dead".  Bought a lot of 5700s when they first came out making .70 a day.  

Also to lock in profits I've been selling btc short since 54k.  I have hedged out any negative effects of price declines for the next 6 months and will keep adding to my short until the down trend ends.  Often My short potions will balloon into a huge money maker dwarfing my mining income.

[Vann]

It depends on the coin. If you are talking about one of the top 25 market cap minable coins, then there is some miner capitulation during a prolonged bear market, but it takes a while. Much of the mining is now commercial large scale farms concentrated where they can operate at a very low overhead. During the last bear market from 01/2018 to 06/2020 the ETH and BTC difficultly actually went up. Smaller cap coins are much more sensitive to market fluctuations. When the price goes down miners move to other coins that are more profitable.

https://bitinfocharts.com/comparison/bitcoin-difficulty.html

https://bitinfocharts.com/comparison/ethereum-difficulty.html

[mak013]

I've mined with 150 gpus from 2016 until today.  I make all my buys of gear when the markets are "dead".  Bought a lot of 5700s when they first came out making .70 a day.  

Also to lock in profits I've been selling btc short since 54k.  I have hedged out any negative effects of price declines for the next 6 months and will keep adding to my short until the down trend ends.  Often My short potions will balloon into a huge money maker dwarfing my mining income.

This is an old and right strategy. "But when dump, sell when pump". This is right both for cryptocurrencies and equipment. But newbie miners always begin mine when pump time.