AMHash1: Cost-Effective Mining Contract

[galdur]

Still, yield now is .8% at .0008 and .9% or so at .0007 which is nothing to sneeze at.

*Hashie*
There, I just sneezed on it. As should anyone: yield% is meaningless if you dont take in to account the inherent extreme devaluation of mining securities.

It´s not meaningless at all and neither is compound interest.

My strategy here, which I have described, has worked very well.

[thevictimofuktyranny]

Yeah, the price of Bitcoins has to fall to around $260-$280 due the maths in the macro economics involved in the older generations of crypto currencies.

Essentially, the currency has to many miners who are not investors or backer of crypto currencies, but these people are purely interested selling of their Bitcoins for Fiat currency e.g. Dollars, Pounds, Euros, etc. Therefore, they are simply mining to sell off their Bitcoins or whatever crypto currency and cash out into Fiat Currency.

Currently, what has been attempted has been to increase the mining difficulty to offset boom in demand for Bitcoins (boom is when prices go unrealistic levels in a short-term period compared to the long-term). The better policy would have been, the biggest holders of Bitcoin releasing some of their stockpiles to prevent the original booms in Bitcoins prices and buying Bitcoins back in slumps. For example: 30% of all the Bitcoins are owned by about 10 people, the entire price difference between a price of $276 per Bitcoin and $360 in $1 million dollar or 0.026% of the current market capitalization.  Therefore, it should be impossible to have a boom in the Bitcoin price unless the people with the big holdings are not following macro economic rules.

The policy of pushing up the mining difficulty to maintain an unrealistic prices has caused a knock on reduction in miners willing to hold their Bitcoins for 2-100 years, this is because they need increase their hashing power to maintain their yields, which means a bigger demand for mining equipment (and cloud mining) purchases, which equates to more miners needing to sell Bitcoins or providers needing to sell Bitcoins for Fiat currency.  

Alternatively, if the biggest holders had managed the price downwards it would have choked off Fiat Currency Profiteers entering the crypto currency market place in the 1st place.

A simple equation: the price profitability of being a miner should be below the value of doing extra hours of overtime in paid employments= choking out Fiat Currency Profiteers.

The other equation that matters is: each day the amount of people seeking to cash out into Fiat currency must equal the number of people seeking to buy in with Fiat currency, the price will go up or down according to imbalances in this equilibrium.

For example: Bitcoin S5 is $413. A Quality PSU is $160, a Raspberry PI is $56 and Postage is $30= $659.

In the USA (Current price of $278), with 50% jump in difficulty over 1 year results in profit a $678.5. If the person spends 1 hour each week on maintenance and research, this equals a wage of $13 per hour. Many people will reckon 1 hour of overtime in the office or in a factory would be easier then messing about with electronics?

However, this equation has been completely ridiculous when the price of Bitcoin was $800, per each hour invested by miner they made $56. Obviously, this was always going to attract Fiat Currency Profiteers!

Turning to hacking or theft of Bitcoins from major companies like MT.Gox. This has clearly, shaken the less informed investors interested in Bitcoin and other crypto currencies.

The design of Crypto Currency has a theoretical possibility of being a platform for zero theft existence for businesses and large investors.

The Bitcoin organisation or the original designers simply didn't see how close their crypto currency was to zero theft existence for businesses and private investors.

Essentially, the Bitcoin or new crypto-currency would set up a premium services for businesses to lock their wallet across the peer-to-peer network, up to 50-100% volume could be locked down  according to operational needs. Therefore, not only would a hacker have to steal the wallet, break the encryption, but also contact the Organisation to move coins of that wallet in large volumes, consequently contacting Bitcoin would reveal their identity!

Secondly, looking at the owner of Mintpal stealing depositors Bitcoins, these Bitcoins ended up on in his wallet. As a peer to peer currency, people will publicly know or be able to trace his wallet with the stolen Bitcoins on and other people should be able to lock his wallet on the network through 40%-50% vote in favour. Therefore, making it impossible to to profit from the theft of that crypto currency. Peer to peer wallets for crypto currencies should have voting functions (like internet jury) to lock wallet of a person accused of stealing coins on the network.

At the end of day, most miners or cloud miners of Bitcoin would prefer lower Fiat prices for Bitcoins or Litecoins then turbo charged increases in mining difficulty, because if you plan to hold the currency for 2 years or more (1 year 8 month to next block halving) then a greater volume of Bitcoin on past expenditures is better each day then a higher Fiat currency price.

WOW this is alot of reading i about finished a cup of coffee reading this lol. I must say i am really proud of a new account that writes this kind of stuff. Alot of the new accounts i see just go on to complain and hide haha. In any case i agree with alot of the points you have made note of on here.

And, yes that was the edited down version, I removed a lot of the observations, technical stuff and those all important digressions that give expansive uses, for example on law their is fundamental bedrock for creating laws to reduce crimes, which if broken will increase crime levels. 

[pumawolf]

thats it im out.
made 0,3BTC profit

i got out couple of days ago too,  i smell a shit storm coming.  well if u look at how low it is at the other place. u could smell it a mile away.

[thevictimofuktyranny]

thats it im out.
made 0,3BTC profit

i got out couple of days ago too,  i smell a shit storm coming.  well if u look at how low it is at the other place. u could smell it a mile away.

Everyone is complaining about the Bitcoin situation, but I would remind them about the GPU only algorithms (X11, X13, X15, Nist5, Neoscrypt, Lyra2 etc) miners are actually making technical annualized losses on their daily mining in USA and even in Iceland.

Darkcoin mined at exchange price of 0.006BTC generates 3.5 cent profit per day in the USA, which equals to anual income $12.77 and even over the 3 year warranty of Nvidia 750TI (maxwell silicon is the most efficient hasher) it equates to a net income of $38.77. A Nvidia 750 TI costs $160, this translates in loss of 3 year loss of $121.23 dollars, this does not even include additional $280 dollars needed to build the PC to mine with? LOL

Even, if you moved to Iceland, where electricity is 3cent a watt; mining Darkcoin with one Nvidia 750TI would generate a net annual income of $43.80, over its' 3 year warranty this equates to $131.4. A net loss of £28.60.

Essentially, everyone mining on the GPU algorithms is making technical losses over the warranty cycles of newer GPU's.

Currently, a lot of old Fiat Currency Profiteers with 7950's, 7970's, 7990's owners paid of their PC rigs investments costs between 2012-2014 during the Litecoin (scrypt) boom, essentially these people will continue to mine until the electricity costs are off greater value to the coin value. These people are constantly cashing out into Fiat Currencies and producing X11 prices that are $121.77 below the cost of basic hardware to mine that any GPU crypto currency.

When these ancient AMD GPU rigs begin failing over the next 2 years e.g. PSU needs replacing or CPU or Motherboard or the GPU's these Fiat Currency Profiteers will simply stop mining, But, the Litecoin boom to $28 was huge and their are proportional huge number of older GPU's that mine to earn Fiat Currencies that need to disappear.

Therefore, in about middle of 2016 onwards the Darkcoin price will move from 0.006BTC to 0.0188btc, the point at which investing in new GPUs becomes economically doable or 66% of GPU hashpower will disappear from the network and remaing loyal miners will get 3 times as many coins for their hashpower - a great time to hoard the increases in coins. Of course, Darkcoins daily production is controlled by the organisation (can be raised or lowered to support the price), it is unlikely you will get 3 times as many Darkcoins for your hashing power from 2016 onwards. Therefore, a major price correction upwards to reflect the cost of buying new GPUs occuring is the most likely outcome.

It is noticeable, the AMD and Nvidia have no intention of releasing new silicon designs until 2016, because this is when there is the potential of extra profits from sales to miners of crypto currencies e.g. why waste money rushing out GPU's in 2015, when it will be more profitable to slowly develop them of 2016 with extra profit margins.

Secondly, whilst the software developers of CCminer and Cubaminer are strongly funded by donations by Nvidia owners, the older generation of AMD Fiat Currency Profiteers are not even funding with donations the development of SGminer optimizations for wider mining community. LOL

Currently, their are modified bins and modified Kernels that increase hashing power on Sgminer that are not in official versions as follows:

X11 50% has been leaked
X13 50% has been leaked, a newer version offers 75% gain over the official release
Neoscrypt 93%

you can buy the latest optimizations privately from Wolf0.

Clearly, even the donations from the mining community for research and development have fallen to pieces on the AMD side of GPU's software development and the SGminer developers are having to sell there improvements privately to justify their research endeavors.
 
Obviously, if you are mining on 2-100 year time span these medium term issues are irrelevant. But, the Bitcoin network is working well in comparison to GPU based crypto currencies.



 

[galdur]

I guess these two will correct simultaneously

[galdur]

Along with this dog

[Dexter770221]

Try to reverse last one by 180 degrees clockwise

[Dexter770221]

Bitstamp is down. Average price of BTC from Bitstamp is taken for calculations. How divs will be calculated tommorow?

[galdur]

Try to reverse last one by 180 degrees clockwise

I may have put a fatal jinx on the poor thing now ...

[Dexter770221]

See, almost the same. So everything is ok with BTC even if you put it on head

[galdur]

See, almost the same. So everything is ok with BTC even if you put it on head

It´s a good thing that my nick in my mother tongue

means benevolent prophet of no deceit.

[galdur]

See, almost the same. So everything is ok with BTC even if you put it on head

Well, in the latter graph it´s at $50 or so.

[xhomerx10]

thats it im out.
made 0,3BTC profit

i got out couple of days ago too,  i smell a shit storm coming.  well if u look at how low it is at the other place. u could smell it a mile away.

Everyone is complaining about the Bitcoin situation, but I would remind them about the GPU only algorithms (X11, X13, X15, Nist5, Neoscrypt, Lyra2 etc) miners are actually making technical annualized losses on their daily mining in USA and even in Iceland.

Darkcoin mined at exchange price of 0.006BTC generates 3.5 cent profit per day in the USA, which equals to anual income $12.77 and even over the 3 year warranty of Nvidia 750TI (maxwell silicon is the most efficient hasher) it equates to a net income of $38.77. A Nvidia 750 TI costs $160, this translates in loss of 3 year loss of $121.23 dollars, this does not even include additional $280 dollars needed to build the PC to mine with? LOL

Even, if you moved to Iceland, where electricity is 3cent a watt; mining Darkcoin with one Nvidia 750TI would generate a net annual income of $43.80, over its' 3 year warranty this equates to $131.4. A net loss of £28.60.

Essentially, everyone mining on the GPU algorithms is making technical losses over the warranty cycles of newer GPU's.

Currently, a lot of old Fiat Currency Profiteers with 7950's, 7970's, 7990's owners paid of their PC rigs investments costs between 2012-2014 during the Litecoin (scrypt) boom, essentially these people will continue to mine until the electricity costs are off greater value to the coin value. These people are constantly cashing out into Fiat Currencies and producing X11 prices that are $121.77 below the cost of basic hardware to mine that any GPU crypto currency.

When these ancient AMD GPU rigs begin failing over the next 2 years e.g. PSU needs replacing or CPU or Motherboard or the GPU's these Fiat Currency Profiteers will simply stop mining, But, the Litecoin boom to $28 was huge and their are proportional huge number of older GPU's that mine to earn Fiat Currencies that need to disappear.

Therefore, in about middle of 2016 onwards the Darkcoin price will move from 0.006BTC to 0.188btc, the point at which investing in new GPUs becomes economically doable or 66% of GPU hashpower will disappear from the network and remaing loyal miners will get 3 times as many coins for their hashpower - a great time to hoard the increases in coins. Of course, Darkcoins daily production is controlled by the organisation (can be raised or lowered to support the price), it is unlikely you will get 3 times as many Darkcoins for your hashing power from 2016 onwards. Therefore, a major price correction upwards to reflect the cost of buying new GPUs occuring is the most likely outcome.

It is noticeable, the AMD and Nvidia have no intention of releasing new silicon designs until 2016, because this is when there is the potential of extra profits from sales to miners of crypto currencies e.g. why waste money rushing out GPU's in 2015, when it will be more profitable to slowly develop them of 2016 with extra profit margins.

Secondly, whilst the software developers of CCminer and Cubaminer are strongly funded by donations by Nvidia owners, the older generation of AMD Fiat Currency Profiteers are not even funding with donations the development of SGminer optimizations for wider mining community. LOL

Currently, their are modified bins and modified Kernels that increase hashing power on Sgminer that are not in official versions as follows:

X11 50% has been leaked
X13 50% has been leaked, a newer version offers 75% gain over the official release
Neoscrypt 93%

you can buy the latest optimizations privately from Wolf0.

Clearly, even the donations from the mining community for research and development have fallen to pieces on the AMD side of GPU's software development and the SGminer developers are having to sell there improvements privately to justify their research endeavors.
 
Obviously, if you are mining on 2-100 year time span these medium term issues are irrelevant. But, the Bitcoin network is working well in comparison to GPU based crypto currencies.



 

 Hello moderators?!
Come on people the topic of this thread is AMHash.  If you want to have totally unrelated discussions create a new thread with that topic.  A little bit of extraneous banter is okay but this is over the top.  Way over.

[galdur]

I can´t believe that there´ll be a friggin 15% diff increase.

Surely they´ll turn a good chunk off just before the adjustment, right ?

[hdbuck]

I can´t believe that there´ll be a friggin 15% diff increase.

Surely they´ll turn a good chunk off just before the adjustment, right ?

nah its all pretty much nicely set and ready to explode simultaneously.

[elasticband]

I can´t believe that there´ll be a friggin 15% diff increase.

Surely they´ll turn a good chunk off just before the adjustment, right ?

nah its all pretty much nicely set and ready to explode simultaneously.

bring on a 40% increase, price out that rusty 6 month old hardware   

[galdur]

I can´t believe that there´ll be a friggin 15% diff increase.

Surely they´ll turn a good chunk off just before the adjustment, right ?

nah its all pretty much nicely set and ready to explode simultaneously.

bring on a 40% increase, price out that rusty 6 month old hardware   

According to that chart above there seem to have been substantial

corrections during the period between adjustments.

[Mabsark]

bring on a 40% increase, price out that rusty 6 month old hardware   

I hope not, AM probably still have a fair amount of BE200 chips to sell.

[galdur]

BTW, could someone make a Hitler ruined by cloud mining

rant clip for YT ? captiongenerator.com

It should feature all major mining players of course.

[elasticband]

the 40% can wait until the AM300, do a KnC an try and double the difficulty in 10 days