I guess, most peepz is now dumping, the price still falling reaches 0.74BTC as of the moment. and difficulty is also increasing. effect of claymore's Best miner :-)
Yeah, I really do not know why people are so happy. Here is the effect of CZM (this miner): profitability dropped by 2. In fact this is the end of profits on ZEC. Maybe it is good for decentralization, but it is an absolute evil for those who wanted (and made) some money on this. Let me explain in some bogus numbers if you like.
Assume there were 3 players that generated 200, 300, 500 shares for 100 coins/day (10 shares per coin), they received 20 (200/10), 30 (300/10), 50 (500/10) ZEC coins. Assume 1 ZEC = 1 BTC. And they received 20, 30, 50 BTC/day.
Now they have doubled hash rate and generate 400, 600 and 1000 shares. Since number of coins per day is the same (difficulty jump up to ensure it), now we need 20 shares per coin. They still create 100 coins/day and should receive 20 (400/20), 30 (600/20), 50 (1000/20) coins. The same amount, but increased power consumption.
But now some lazy newbies started mining ZEC as well, and lot of old cards are now mining too. Let assume they added +20% of total shares. That is we decrease the ZEC profit by 20% and now receive 16, 24, 40 + new 20 percent of share for same 100 coins/day.
Also we all are rich now and start dumping. The price dropped by 25%, and now in BTC we have 20% less. If 1 ZEC was = 1 BTC, now it is 0.75 BTC, and instead of original 20, 30, 50 BTC/day we and newbies receive 12 (16*0.75), 18 (24*0.75), 30 (40*0.75) and 15 (20*0.75) BTC.
Was: 20, 30, 50
Now: 12, 18, 30 and 15 for new players who was waiting for this miner.
And yes, you should also subtract 2.5% fee from this amount.
Net result: 50% real profit loss. Numbers are not real, but the idea is the same. Do not know why people are so happy. I think only those who was not able to build a miner on Linux are now happy since they have come into the game. But good profitability is behind.
This is the unfortunate truth.
Genoils miner kept a certain amount of people off zcash with the crashes but those smart enough had a watch dog script that keep it running or use linux.
But this is the reality we have to deal with now, a increasing hash rate, decreasing price on the market. The last redeeming hope is that we will Still increase the block reward by 4x as it is now ~2.5 to 10. So as long as the market does not dump to or below $125 a coin we will still be in a good position.
Also at least we were smart enough to know that cloud mining was a total waste of money, those are the real losers here. With the biggest profit leaders being cloud mining providers and private miner devs.