I've been kind of re-working my profit strategy mainly in part because of the looming Bitcoin Reward Halving coming up in a few months.
I've been noticing on Coinwars, Bitcoin is pretty consistently -NOT- the most profitable. Bitcoin is usually 3rd or fourth most profitable, today its up to second with Peercoin being the most profitable and has been there for hours.
I know, its not uncommon for a coin to shoot up for 15 minutes, 30 minutes an hour, but then that coin will settle back near the bottom - some pump and dump stuff. But for the last couple weeks of looking at my profit strategy and Coinwars; the cryptocurrencies Mazacoin (MZC), Peercoin(PPC), eMark(DEM) and more recently SafronCoin SHA256 (SFR) have continually been rotating ABOVE Bitcoin.
I guess my question would be:
Has anyone switched from Bitcoin to another cryptocurrency because Bitcoin is currently not the most profitable? Or are you mining Bitcoin in hopes of Bitcoin rising in price?
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I'm a bit torn between what will happen with reward halving.
1) Bitcoin could have a bit of a rise in value
2) Bitcoin mining could become absolutely unprofitable to mine at home or even as a business.
3) People will switch from Bitcoin mining to other SHA-256 algo cryptocurrencies since, like now, Bitcoin is not the most profitable and people would like to try and break even for the equipment purchased.
Myself, I'm leaning towards shifting 1/2 my mining hashpower to an auto switching pool which will mine the most profitable coins at the moment, and keep the other half on Bitcoin - I have around 25TH to play with. I'll then be "investment mining" if BTC rises in value, I'll have some BTC stashed, if Bitcoin drops like a rock and other cryptocurrencies vie for being "Bitcoin 2.0", I'll have some of the more active coins stashed for if they peak at a nice value. Then, after the reward halving, re-assess profitability mining as a whole.
Don't pay attention to Coinwarz, the other coins are usually profitable for like 1 hour of the day and only by a few %.
Multipools kill any extra profits from mining those coins.
I've noticed that in the past where some coins will quickly flash at the top for a little bit and quickly drop back down to where they were. then there are days where maybe one coin gets some top shelf attention, but it also will go back down. What I'm seeing currently is longer duration of just a few coins being higher in profitability than bitcoin. Of course I also see those quick flashes of those -bottom feeder- coins. But Peercoin, Mazacoin, eMark, titcoin have been up above Bitcoin consistently however, more or less like in a random rotation. One or more of these coins will sit above Bitcoin for hours, these are not quick flashes for less than an hour and like today, Peercoin has been sitting at the top for most of the day and with a $2-$3 a day profit difference.
I'm thinking that the coin landscape is changing ahead of the BTC halving because the coin profitability just is not acting like it was where BTC would tend to work out at the end of the day as being the more profitable. I've been watching this for a couple of weeks now, Its not looking like what it was 6 months, a year ago etc, like what we all remember.
On the multi pool thing ... yeah when I spit that out, it was an un-educated , un-researched idea. I see that is a bad idea. But solo mining in a rotation of the frequent top coins, those S7's can wreak holy hell on those coins and just rake them in -- using the concept that people who have the high hash power tend to stay with BTC which is the rock, the guiding ideal of a coin, trying to ROI either that or they are plug and play screw driver wizards that set it and forget it.
I'm going to set up a system or multiple systems for solo mining these frequently more profitable coins and rotate through them to build a portfolio of these coins just in case this change I'm seeing is going to turn into something. More and more, I'm beginning to think that there will be a battle of altcoins when BTC become's unprofitable for most when the reward halves. I think what I'm seeing is people selecting the next best coins in prep for halving. One of them will rise to the top.