Thank you for your reply.
Also, your wrong. The amount of rewards depend on the difficulty.
This is what concerns me, the difficulty reflects the estimated target hashrate so that blocks are created according to the schedule.
Consider a coin with a target block time of 2 minutes. You can work out the
required hashrate from the difficulty as follows:
Difficulty 16: (16*(2^32))/120 = 572662306.133, or 572.6 MH/s
Difficulty 32: (32*(2^32))/120 = 1145324612.27, or 1,145 MH/s
If the network hashrate is 1145MH/s at both difficulties, and you have 10% of the hashrate, then you will receive 10% of the blocks at both difficulties.
If you scramble for the blocks all at the start you will not get more, rather you will get some slightly faster (or not because of orphans), and then later find you cannot get many at all because the difficulty is too high, or that you still get 10% but you have to hash for much longer.
In the end it means that any fractional gains from mining the first blocks at a lower difficulty are negated by having to spend longer hashing at the higher difficulty.
The effect is further compounded by any dump, as the later expensive to mine blocks take a much greater financial penalty, often resulting in loss.
2) But if you have a coin that only has a short-term pump, you better be one of the first to sell asap on peak.
Why would you do this? Surely if you pick a reasonable coin with some future to it, and mine it for a longer period of time, then your resulting risk is greatly reduced, and chance of fair profit greatly increased.
and basically you mined for scrap and have contributed in killing that coin since the multipools always sell no matter the price...
(Am I the only one who really understand why multipool aren't profitable at all ?)
Exactly, by doing so you simply drive the market price towards the cost of production resulting on no profit or a loss.