What is the correlation between these ?

[swogerino]

I saw that now that the price got down the difficulty of Ethereum network is still in 8.6 to 8.9 P but mostly in 8.75 right now.I see that for the same hash rate of near 300 Mhsh I used to make like 0.0061 Ethereum daily and out of nowhere for the same hash rate now my daily earning is 0.0074 Ethereum.My natural question is what is the correlation between price,mining and difficulty,I know it should be the higher the difficulty and lower the price the lower the rewards but something different is happening here.Pool is Ethermine just in case you need this detail.

[waggy459]

The extra you are seeing has been a quick spike in gas prices, so mining rewards have gone up as well.  Because of both the volatility today and also continued NFT minting, there has been a lot of network demand which drives up tip and average transaction cost.  Enjoy it while it's here!

[Bitcoin_Arena]

It's because of the heightened gas prices lately. So on top of the usual block rewards, you will earn an extra that has been paid in transaction fees. The median gas price right now is at 163 Gwei which is almost 3 times more than it was a few days back.


https://etherscan.io/chart/gasprice

https://etherscan.io/chart/gasused

[swogerino]

Ok thank you for answers and understood this for Ethereum,now I have another question.Since I manage a rig together with a friend we share profits there and is not completely mine and we are mining Ethereum Classic even there the same thing happened,we have like 210-230 Mhsh processing power there 8 Rx 470/570 cards and we were doing like 0.18 ETC daily now with the same difficulty and the price going down of Ethereum Classic too it spiked to 0.20-0.206 ETC daily.Not that I am not happy with it but here the fees are still low as I convert always ETC in Binance and when I send money the fee is really low,so why it has happened here too,pool is the same,Ethermine.

[FP91G]

Ethereum and Ethereum Classic share the same principle of miner rewards.
Algorithm for adding coins, their number is always the same.
You need to look at the commissions, because this is also a miners' reward. If the Ethereum network commissions are high, then the profit will grow. In the Ethereu Classic network, the commissions are low, so the profit depends on the network hashrate and the price of the coin.

[swogerino]

Ethereum and Ethereum Classic share the same principle of miner rewards.
Algorithm for adding coins, their number is always the same.
You need to look at the commissions, because this is also a miners' reward. If the Ethereum network commissions are high, then the profit will grow. In the Ethereu Classic network, the commissions are low, so the profit depends on the network hashrate and the price of the coin.

I think these stats during yesterday were some bug in Ethermine pool as now that the difficulty of both Ethereum and Ethereum Classic is in new all time highs,specifically 9.14 P Eth and 337 TH ETC which is making that daily mining rewards to go down sharply.That is how it should work,the higher the difficulty of the network the lower the mining rewards and vice versa.

[FP91G]

Ethereum and Ethereum Classic share the same principle of miner rewards.
Algorithm for adding coins, their number is always the same.
You need to look at the commissions, because this is also a miners' reward. If the Ethereum network commissions are high, then the profit will grow. In the Ethereu Classic network, the commissions are low, so the profit depends on the network hashrate and the price of the coin.

I think these stats during yesterday were some bug in Ethermine pool as now that the difficulty of both Ethereum and Ethereum Classic is in new all time highs,specifically 9.14 P Eth and 337 TH ETC which is making that daily mining rewards to go down sharply.That is how it should work,the higher the difficulty of the network the lower the mining rewards and vice versa.

Everything is correct. If the block reward is stable. For example, a reward for block 2 Ethereum and commission 1-2 Ethereum.
And if the commission in the block is 10-100 Ethereums, then the miner's reward will be higher, despite the increase in complexity.
Such situations are very often seen on the Ethereum blockchain. I have not seen this on Ethereum classic.

[adaseb]

Calculating profitability is VERY difficult for ETH as to say something like BTC. BTC is easy because the fees are mostly low and BTC doesn't do any type of burning. The ETH burning is what makes its difficult to calculate how much you should be making.

If you look at,
https://etherscan.io/chart/dailyethburnt

Here you see the total ETH burnt, so when the fees goes up you should be making more however more fees get burnt. So its difficult to calculate. I actually think a couple of days ago we had a true deflationary day where we burnt more fees than total ETH rewards so the supply actually went down that day.

[swogerino]

Calculating profitability is VERY difficult for ETH as to say something like BTC. BTC is easy because the fees are mostly low and BTC doesn't do any type of burning. The ETH burning is what makes its difficult to calculate how much you should be making.

If you look at,
https://etherscan.io/chart/dailyethburnt

Here you see the total ETH burnt, so when the fees goes up you should be making more however more fees get burnt. So its difficult to calculate. I actually think a couple of days ago we had a true deflationary day where we burnt more fees than total ETH rewards so the supply actually went down that day.

I just thought that when difficulty arises the rewards should go low as that is the main logic of mining in general,we have a pie and when the difficulty is low we can conclude that each person eats a big piece of this pie and when the difficulty is high each person eats a small piece of this pie.Now that they added the burnt fees after London hard fork it looks like the difficulty isn't playing a big role anymore.The day you are talking about was just a few days after the London hard fork,don't know if that happened again during a couple of days ago but if it did it is not helping at all.Difficulty is in the rise big time now and together with this London fork and burnt fees it is a mess.Anyway in the end I am happy with 0.006 Eth daily which is my actual reward now with difficulty of almost 9 P.

[FP91G]

https://t.me/Pro_Blockchain/15783
I rarely look at the difficulty of the network. I'm more interested in the profit of the video card at the moment.
The difficulty of the network is very important when mining new coins that have the potential for growth, and at the beginning their price is very low.
And with top coins, the miner's profit is constantly decreasing.

[swogerino]

https://t.me/Pro_Blockchain/15783
I rarely look at the difficulty of the network. I'm more interested in the profit of the video card at the moment.
The difficulty of the network is very important when mining new coins that have the potential for growth, and at the beginning their price is very low.
And with top coins, the miner's profit is constantly decreasing.

This above photo says a lot about the reality of today.Just a couple of days ago I was making like 0.006 or just a bit more with near 300 Mhsh processing power and now just a couple of days later this same hash rate is doing just 0.005 Ethereum daily.Looks like the difficulty has increased a lot and together with the gas fees burnt I will keep Ethereum mining for another month to see how things evolve otherwise I am going to mine something else because with near 300 Mhsh I can make like 0.27 Ethereum Classic daily which is almost the same in Fiat value and who knows how much Ethereum Classic increases in price if Ethereum increases to big values like expected.There is a lot to play for,we just have to make the right choices in the right time.

[adaseb]

Yes the hashrate is increasing at an alarming pace. Basically in the last month it increased by 100,000 GH/s so if you assume average GPU is 30MH/s thats about 3.33 million GPUs, most likely the hashrate is higher so the amount of GPUs might be around 2-2.5 million or so.

Looking at Nvidia's quarter report, they made like 10 million or so. However keep in mind that not every GPU they ship is actually used to mine. They make alot of GPUs for professionals and really low end GPUs. So assume in 3 months they producre 5 million and AMD produces maybe 1 million or so, that is 6 million GPUs.  So it seems the hashrate is increasing much higher than the rate of production which means that ASICs own a large portion of the hashrate these days.

[Bitcoin_Arena]

Looking at Nvidia's quarter report, they made like 10 million or so. However keep in mind that not every GPU they ship is actually used to mine. They make alot of GPUs for professionals and really low end GPUs. So assume in 3 months they producre 5 million and AMD produces maybe 1 million or so, that is 6 million GPUs.  So it seems the hashrate is increasing much higher than the rate of production which means that ASICs own a large portion of the hashrate these days.

But the prices of gaming laptops that have GTX and RTX graphics cards seems to have increased insanely this year. I always thought it was all related to crypto mining. If most PCs are using low end GPUs, then why are they still ridiculously expensive?

[swogerino]

Looking at Nvidia's quarter report, they made like 10 million or so. However keep in mind that not every GPU they ship is actually used to mine. They make alot of GPUs for professionals and really low end GPUs. So assume in 3 months they producre 5 million and AMD produces maybe 1 million or so, that is 6 million GPUs.  So it seems the hashrate is increasing much higher than the rate of production which means that ASICs own a large portion of the hashrate these days.

But the prices of gaming laptops that have GTX and RTX graphics cards seems to have increased insanely this year. I always thought it was all related to crypto mining. If most PCs are using low end GPUs, then why are they still ridiculously expensive?

Yeah I think it is because from what I see here where I am located the major PC part retailers,they sell a PC with RTX 3070 non LHR for 1700 EUR in total with Ryzen 9 5950 processor,32 GB of Ram DDR4,good motherboard and case and they sell the RTX 3070 alone at 1400 EUR because they say there is not enough stock.I believe this is a correct reason knowing that production of GPU has problems with the shortage of chips.
So it is because big retailers won't sell for cheap the GPU alone while they will sell a complete PC with good GPU-s cheaper.

[FP91G]

Looking at Nvidia's quarter report, they made like 10 million or so. However keep in mind that not every GPU they ship is actually used to mine. They make alot of GPUs for professionals and really low end GPUs. So assume in 3 months they producre 5 million and AMD produces maybe 1 million or so, that is 6 million GPUs.  So it seems the hashrate is increasing much higher than the rate of production which means that ASICs own a large portion of the hashrate these days.

But the prices of gaming laptops that have GTX and RTX graphics cards seems to have increased insanely this year. I always thought it was all related to crypto mining. If most PCs are using low end GPUs, then why are they still ridiculously expensive?

I think that the reason is the hucksters and speculators.
I look at the message boards for the sale of components in my country and companies that sell mining equipment. They have a huge number of video cards available. They create a shortage of video cards in the market, and all stores also profit from high prices.

[fmz89]

https://t.me/Pro_Blockchain/15783
I rarely look at the difficulty of the network. I'm more interested in the profit of the video card at the moment.
The difficulty of the network is very important when mining new coins that have the potential for growth, and at the beginning their price is very low.
And with top coins, the miner's profit is constantly decreasing.

Nice pic btw, eth bagholder want fee burned to gain morr room to pump. At this point infaliton vs burned fee is 4:1 maybe in the future eth gain more attention from nft space and burned coin will pas inflation, just reminder vitalik is honest developer, the pic is totally wrong