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Topic: ASICMINER: Entering the Future of ASIC Mining by Inventing It - page 1051. (Read 3917058 times)

member
Activity: 85
Merit: 10
Aggressively: https://bitcointalksearch.org/topic/m.2159577
1000 shares x 0.03 btc/shares/week * 4 weeks/month = 120 btc/month

Conservatively: http://www.asicminer.co/figures.html
1000 shares x 0.007 btc/shares/week * 4 weeks/month = 28 btc/month

Thanks! the difference between the two scenarios is tied to share price or Bitcoin price ?

Don't you even bother to READ the post you are answering?

You don't deserve this, honestly.


Chill out dude. I'm new here and asking around. Your intimidating comment is absolutely awful and useless
legendary
Activity: 980
Merit: 1008
I think you're missing something. The network hash rate doesn't "vary". It doesn't go up and down like that chart says. It's fairly constant (probably), growing slowly.

The chart you're seeing is an estimation of the network hash rate based on blocks found. This is what makes it vary, the fact that we're deducing hash rate from "number of hashes found below difficulty per unit of time".

You can't have a script running that makes sure ASICMiner doesn't have more than 50% of the total network hash rate at any point in time, because you don't know what total network hash rate is at some point in time. It can only be deduced, in retrospect, at a certainty that increases with the length of the period over which we average.

The spikes are really coming from luck because of found blocks? Interesting if true... till now i was under the impression that it spikes because of lowering or rising hashspeed... but it makes sense to calculate the speed from found blocks because thats the nearest you can get to hashrate. But i really thought the luck doesnt have such a variance over time. I mean the chart seems to show that it calculates only 3 times a day. I thought the average over such timeframe should prevent good enough to have spikes of 30%... but i didnt think it through really, youre right...
As sipa's graphs show, you really need to go up to a 3-day average, to get a somewhat stable graph: http://bitcoin.sipa.be/

That being said, there is essentially no way to know whether people are continually turning their rigs on and off in a coordinated fashion, or getting lucky, just by looking at when blocks are found.

I'm not good with statistics, but I'm sure you can determine the probability of, for example, 7 blocks being found in an hour instead of 6, or 160 blocks being found in a day instead of 144, and I don't think it's small.

Remember that only around 144 blocks are found per day. It doesn't take more than 15 extra blocks to be found in a day for the 1-day average to increase by 10%.
full member
Activity: 130
Merit: 100
I like the de-centralized scheme.  It strengthens Bitcoin.

To harm Bitcoin, one malicious party can compromise the largest pool by attacking the server or data center, take over, and cause an unexpected/undercover fork in the blockchain.  The error compounds exponentially and then it would be difficult to recover.  

It's easier to attack one server or data center, as opposed to attacking hundreds or thousands of miners individually.  What I am trying to say is, let's avoid a single point of failure.
legendary
Activity: 1946
Merit: 1035
If friedcat has a surplus of ASIC hardware that can not be deployed for bitcoin mining, then why not mine another sha256 altcoin (can can not be merge mined) like PPC?

The PPC proceeds can easily be converted into BTC on exchanges like BTC-e.

Look at the volumes on BTC-e. Then try to calculate the revenues, also take a look at the market cap of PPC on Dustoin (about 28.289 BTC right now). Then crunch these numbers, and see how unsustainable doing this would be. After 24 hours, expect PPC exchange rate to plummet on a 1:10 scale at best...

So, interesting idea, but not a sustainable one.
hero member
Activity: 761
Merit: 500
Mine Silent, Mine Deep
...
What if friedcat distributes his hashing power into multiple mining pools? In that case, he can go over 50%.

No.
My guess is something would be done to bitcoin to block asicminer.
Would be the most reasonable step to take to avoid the risks.

If friedcat has a surplus of ASIC hardware that can not be deployed for bitcoin mining, then why not mine another sha256 altcoin (that can not be merge mined) like PPC?

The PPC proceeds can easily be converted into BTC on exchanges like BTC-e.
legendary
Activity: 2674
Merit: 1083
Legendary Escrow Service - Tip Jar in Profile
The spikes are really coming from luck because of found blocks?

Well,
-The calculated hashrate from solomining can bounce a lot because it is indeed calculated by the blocks found in the last 48 hours..
-The hashrate on BTCGuild is pretty steady.
-The hashrate on Bitminter is going from 6 TH/s to 2 TH/S and back 2 times in the last 5 days.
That really hasn't anything to do with found blocks but it is the actual hashrate..
So that makes it pretty plausible that also the solomining hashrate went down during that period Smiley

Friedcat wrote they are troubleshooting these days and that could cause the peaks and drops..

Please check the last chart on www.asicminercharts.com, and zoom to 5 days (upper left: 5d)
There you can clearly see the BitMinter speed drop and the calculated solomining speed drop, and the effect of that on the total hashrate.

So if i understand you correctly you say its not the variance of luck that leads to more found blocks in the one timeframe and less in the next while the hashrate was the same overall in both timeframes... the spikes are the result from spiking hashrate.

But it would be hard one way or the other to calculate the correct hashrate of the network without only using the solved blocks. One would need to monitor every pools total hashrate, to get it more exact. But still there are enough solominers you cant read the hashrate, only the result, which are solved blocks. So it might be quite hard to get a script written that adjusts the own hashrate to the one the network has. Its much guessing included.
sr. member
Activity: 322
Merit: 252
The spikes are really coming from luck because of found blocks?

Well,
-The calculated hashrate from solomining can bounce a lot because it is indeed calculated by the blocks found in the last 48 hours..
-The hashrate on BTCGuild is pretty steady.
-The hashrate on Bitminter is going from 6 TH/s to 2 TH/S and back 2 times in the last 5 days.
That really hasn't anything to do with found blocks but it is the actual hashrate..
So that makes it pretty plausible that also the solomining hashrate went down during that period Smiley

Friedcat wrote they are troubleshooting these days and that could cause the peaks and drops..

Please check the last chart on www.asicminercharts.com, and zoom to 5 days (upper left: 5d)
There you can clearly see the BitMinter speed drop and the calculated solomining speed drop, and the effect of that on the total hashrate.
donator
Activity: 2058
Merit: 1007
Poor impulse control.
A >50% attack doesnt make sense in case one wants to earn money. It might be only useful to destroy bitcoin. One could claim that friedcat never would do this but it wouldnt matter when people freak out in fear.
+1

and that's why it is much better to stay in a safe zone of no more than 30%.


Im not sure that this is needed. When i see this chart: http://blockchain.info/de/charts/hash-rate it looks the variance in the whole network isnt very high. 99825 to 76744. Thats 100% to 76.88%. In this case, if AM would have under 38.372 TH the network would still be safe because it dropped only to 76.744 TH. We are still way beyond that. 38,372TH for a total 99.825TH of the net would mean 38.44% would be safe.

But i think friedcat could even go higher near 50% when there is a script running to prevent 50%. A damage would only be done when someone shows that AM had over 50%. A theoretical >50% doesnt matter. If it would matter BFL, Avalon or Asicminer would have been a threat all the time because they theoretically have the power to kill bitcoin. But theoretically doesnt matter much.

Of course this raises the risk of AM being hacked to kill bitcoins... and so on... isnt really that easy... Smiley
I think you're missing something. The network hash rate doesn't "vary". It doesn't go up and down like that chart says. It's fairly constant (probably), growing slowly.

The chart you're seeing is an estimation of the network hash rate based on blocks found. This is what makes it vary, the fact that we're deducing hash rate from "number of hashes found below difficulty per unit of time".

You can't have a script running that makes sure ASICMiner doesn't have more than 50% of the total network hash rate at any point in time, because you don't know what total network hash rate is at some point in time. It can only be deduced, in retrospect, at a certainty that increases with the length of the period over which we average.

I think what SebastianJu was saying is that, in retrospect, you could calculate upper and lower confidence interval bound for the previous n hours of ASICMiner solomining, except he's gone about it the wrong way.

It's a good idea - the confidence intervals start to reduce as the percentage of the network increases. Based on the past week's solomining, I get an average hashrate of 5482Ghps and a 95% confidence interval of 4265 Ghps to 6489 Ghps. Of course you have to wait a week to get that accuracy. If you want to wait less time, the 95% confidence interval widens significantly.
legendary
Activity: 2674
Merit: 1083
Legendary Escrow Service - Tip Jar in Profile
I think you're missing something. The network hash rate doesn't "vary". It doesn't go up and down like that chart says. It's fairly constant (probably), growing slowly.

The chart you're seeing is an estimation of the network hash rate based on blocks found. This is what makes it vary, the fact that we're deducing hash rate from "number of hashes found below difficulty per unit of time".

You can't have a script running that makes sure ASICMiner doesn't have more than 50% of the total network hash rate at any point in time, because you don't know what total network hash rate is at some point in time. It can only be deduced, in retrospect, at a certainty that increases with the length of the period over which we average.

The spikes are really coming from luck because of found blocks? Interesting if true... till now i was under the impression that it spikes because of lowering or rising hashspeed... but it makes sense to calculate the speed from found blocks because thats the nearest you can get to hashrate. But i really thought the luck doesnt have such a variance over time. I mean the chart seems to show that it calculates only 3 times a day. I thought the average over such timeframe should prevent good enough to have spikes of 30%... but i didnt think it through really, youre right...
legendary
Activity: 980
Merit: 1008
A >50% attack doesnt make sense in case one wants to earn money. It might be only useful to destroy bitcoin. One could claim that friedcat never would do this but it wouldnt matter when people freak out in fear.
+1

and that's why it is much better to stay in a safe zone of no more than 30%.


Im not sure that this is needed. When i see this chart: http://blockchain.info/de/charts/hash-rate it looks the variance in the whole network isnt very high. 99825 to 76744. Thats 100% to 76.88%. In this case, if AM would have under 38.372 TH the network would still be safe because it dropped only to 76.744 TH. We are still way beyond that. 38,372TH for a total 99.825TH of the net would mean 38.44% would be safe.

But i think friedcat could even go higher near 50% when there is a script running to prevent 50%. A damage would only be done when someone shows that AM had over 50%. A theoretical >50% doesnt matter. If it would matter BFL, Avalon or Asicminer would have been a threat all the time because they theoretically have the power to kill bitcoin. But theoretically doesnt matter much.

Of course this raises the risk of AM being hacked to kill bitcoins... and so on... isnt really that easy... Smiley
I think you're missing something. The network hash rate doesn't "vary". It doesn't go up and down like that chart says. It's fairly constant (probably), growing slowly.

The chart you're seeing is an estimation of the network hash rate based on blocks found. This is what makes it vary, the fact that we're deducing hash rate from "number of hashes found below difficulty per unit of time".

You can't have a script running that makes sure ASICMiner doesn't have more than 50% of the total network hash rate at any point in time, because you don't know what total network hash rate is at some point in time. It can only be deduced, in retrospect, at a certainty that increases with the length of the period over which we average.
legendary
Activity: 2674
Merit: 1083
Legendary Escrow Service - Tip Jar in Profile
block sizes are on average 25.25 BTC recently

Yes, transaction fee becomes more and more important... block halving doesnt look to dangerous anymore...
hero member
Activity: 546
Merit: 500
block sizes are on average 25.25 BTC recently
legendary
Activity: 4256
Merit: 8551
'The right to privacy matters'
Aggressively: https://bitcointalksearch.org/topic/m.2159577
1000 shares x 0.03 btc/shares/week * 4 weeks/month = 120 btc/month

Conservatively: http://www.asicminer.co/figures.html
1000 shares x 0.007 btc/shares/week * 4 weeks/month = 28 btc/month

Thanks! the difference between the two scenarios is tied to share price or Bitcoin price ?
 

 Neither  the differences are tied to earnings per share.  Earnings are from coins earned and mining gear sold.   Then minus power cost expenses etc.

 Pretend 100 shares earned 2 coins mining and 1 coin worth of gear was sold in a week.  3 coins came in divide by 100  you get .03 coins earn per share for that week.

 So a 100% give back for that week would be .03 coins per share.   Of course AM may hold back some of that to build more mining gear or to pay for power etc.  

I think the best dividend ever was .036 or .037 per share.

 I think the worst one was .0013 or .0014  per share .

I hope he's just throwing random numbers and not thiking about buying 1,000 shares without knowing how to do the maths LOL

 I  often wonder what people think or want when they ask simple general questions.

 I wish I had 2400  to 2500 BTC to spend on AM stock.
sr. member
Activity: 364
Merit: 250
1000 shares being around 2400 BTC at the moment - pricey buy.

The next few weeks' dividends is likely to be between 0.01-0.02, possibly higher dependant upon sales, but the share price could go up or down by a lot more than dividends is going to make you. In fact, you can be pretty sure it will. Pricing for the long term is very difficult because we don't really know how the competition will affect things in 2+ month's time.



legendary
Activity: 1190
Merit: 1001
Aggressively: https://bitcointalksearch.org/topic/m.2159577
1000 shares x 0.03 btc/shares/week * 4 weeks/month = 120 btc/month

Conservatively: http://www.asicminer.co/figures.html
1000 shares x 0.007 btc/shares/week * 4 weeks/month = 28 btc/month

Thanks! the difference between the two scenarios is tied to share price or Bitcoin price ?
 

 Neither  the differences are tied to earnings per share.  Earnings are from coins earned and mining gear sold.   Then minus power cost expenses etc.

 Pretend 100 shares earned 2 coins mining and 1 coin worth of gear was sold in a week.  3 coins came in divide by 100  you get .03 coins earn per share for that week.

 So a 100% give back for that week would be .03 coins per share.   Of course AM may hold back some of that to build more mining gear or to pay for power etc.  

I think the best dividend ever was .036 or .037 per share.

 I think the worst one was .0013 or .0014  per share .

I hope he's just throwing random numbers and not thiking about buying 1,000 shares without knowing how to do the maths LOL
legendary
Activity: 4256
Merit: 8551
'The right to privacy matters'
Aggressively: https://bitcointalksearch.org/topic/m.2159577
1000 shares x 0.03 btc/shares/week * 4 weeks/month = 120 btc/month

Conservatively: http://www.asicminer.co/figures.html
1000 shares x 0.007 btc/shares/week * 4 weeks/month = 28 btc/month

Thanks! the difference between the two scenarios is tied to share price or Bitcoin price ?
 

 Neither  the differences are tied to earnings per share.  Earnings are from coins earned and mining gear sold.   Then minus power cost expenses etc.

 Pretend 100 shares earned 2 coins mining and 1 coin worth of gear was sold in a week.  3 coins came in divide by 100  you get .03 coins earn per share for that week.

 So a 100% give back for that week would be .03 coins per share.   Of course AM may hold back some of that to build more mining gear or to pay for power etc.  

I think the best dividend ever was .036 or .037 per share.

 I think the worst one was .0013 or .0014  per share .
legendary
Activity: 4592
Merit: 1851
Linux since 1997 RedHat 4
...
...
What if friedcat distributes his hashing power into multiple mining pools? In that case, he can go over 50%.

No.
My guess is something would be done to bitcoin to block asicminer.
Would be the most reasonable step to take to avoid the risks.
Impractical. The disruption, due to changing the hashing algorithm, will damage the reputation and introduces severe uncertainties with respect to the security of the network.
Hmm not as impractical as you might think ...
But if someone controlled > 50% of the network, that fact would indeed
"damage the reputation and introduces severe uncertainties with respect to the security of the network."
You've got that one certainly back to front.
hero member
Activity: 630
Merit: 500
Bitgoblin
Aggressively: https://bitcointalksearch.org/topic/m.2159577
1000 shares x 0.03 btc/shares/week * 4 weeks/month = 120 btc/month

Conservatively: http://www.asicminer.co/figures.html
1000 shares x 0.007 btc/shares/week * 4 weeks/month = 28 btc/month

Thanks! the difference between the two scenarios is tied to share price or Bitcoin price ?

Don't you even bother to READ the post you are answering?

You don't deserve this, honestly.
member
Activity: 85
Merit: 10
Aggressively: https://bitcointalksearch.org/topic/m.2159577
1000 shares x 0.03 btc/shares/week * 4 weeks/month = 120 btc/month

Conservatively: http://www.asicminer.co/figures.html
1000 shares x 0.007 btc/shares/week * 4 weeks/month = 28 btc/month

Thanks! the difference between the two scenarios is tied to share price or Bitcoin price ?
member
Activity: 98
Merit: 10
Aggressively: https://bitcointalksearch.org/topic/m.2159577
1000 shares x 0.03 btc/shares/week * 4 weeks/month = 120 btc/month

Conservatively: http://www.asicminer.co/figures.html
1000 shares x 0.007 btc/shares/week * 4 weeks/month = 28 btc/month
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