Do SHA 256 Alt coins depend on btc? | Bitcointalksearch.org

J_Dubbs

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Quote from: DarkMiningBTC on January 03, 2014, 12:37:06 AM

Quote from: padrino on January 03, 2014, 12:06:21 AM

They don't directly depend on BTC technically speaking however BTC is important to them for a few reasons..

All SHA-256 Alt Coins I can think of derive their value from what they are worth in BTC, there isn't much of a market currently for Alt Coins not tied to BTC..

Alt Coins derive their clients, etc. from the BTC client...

Another note, if you think BTC can be volatile watch some alt coins.. You can go from profitable to a loss before your coins mature so keep an eye out..

I get what you are saying but also one more thing, back a few months ago 336 MH/s used to even be profitable, now coins much more profitable than BTC , still 336 MH/s is nothing but a few cents for them as well, so I'm guessing BTC does have a thing to do with it.

Bone up on economics, law of supply and demand, results on increasing inputs. "ROI" is constantly thrown around wrong, and measuring profitability on an unknown future value is not an exact science.

DarkMiningBTC

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Quote from: padrino on January 03, 2014, 12:06:21 AM

They don't directly depend on BTC technically speaking however BTC is important to them for a few reasons..

All SHA-256 Alt Coins I can think of derive their value from what they are worth in BTC, there isn't much of a market currently for Alt Coins not tied to BTC..

Alt Coins derive their clients, etc. from the BTC client...

Another note, if you think BTC can be volatile watch some alt coins.. You can go from profitable to a loss before your coins mature so keep an eye out..

I get what you are saying but also one more thing, back a few months ago 336 MH/s used to even be profitable, now coins much more profitable than BTC , still 336 MH/s is nothing but a few cents for them as well, so I'm guessing BTC does have a thing to do with it.

DarkMiningBTC

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Quote from: J_Dubbs on January 02, 2014, 11:59:50 PM

Quote from: DarkMiningBTC on January 02, 2014, 10:39:38 PM

I'm wondering this because I think this is the case, if BTC is low the alts seem to be low (in profit), I'm wondering that like lets say u had a 200 GH/s miner and as always BTC's difficulty is to high, you go to a much higher profability coin like peercoin, will this 200 Gh/s miner be ALWAYS profitable since theres always new and more profibal coins coming out? If that made any sense.

I think I understand what you are asking, but not sure. Anyways, no. Not ALL mining will ALWAYS be profitable because any new coin involves speculation,and even the existing coins are speculative because it's still an emerging sector. Any decision has a cost, the cost of a decision is measured in terms of the forgone alternatives. When you decide to aim 200gh/s at one coin, it will always be measured against what else it could have mined. "ROI" is often misused here, but it is a lagging indicator, a measure of historical performance in term of present valuation. Since emerging coins are new there is more risk, and difficulty in forecasting demand, which in a decentralized system leads to valuation. Simply said, there are no guarantees in mining new or existing coins, but more risk/reward is implied with newer coins. Profit is the reward for making the best economic decision, but cost comes in many forms (opportunity cost, hidden cost, etc).

I get what you mean, and I use a multi pool auto-switching to most profitable alt, so If I aim to go for a 200 GH/s (auto switching to most profitable coins), am I assure to get my RIO? (at this point its 30 days for the RIO). It seems that there will always be profit with your device since newer coins are always coming out.

padrino

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They don't directly depend on BTC technically speaking however BTC is important to them for a few reasons..

All SHA-256 Alt Coins I can think of derive their value from what they are worth in BTC, there isn't much of a market currently for Alt Coins not tied to BTC..

Alt Coins derive their clients, etc. from the BTC client...

Another note, if you think BTC can be volatile watch some alt coins.. You can go from profitable to a loss before your coins mature so keep an eye out..

J_Dubbs

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Activity: 322

Merit: 250

Quote from: DarkMiningBTC on January 02, 2014, 10:39:38 PM

I'm wondering this because I think this is the case, if BTC is low the alts seem to be low (in profit), I'm wondering that like lets say u had a 200 GH/s miner and as always BTC's difficulty is to high, you go to a much higher profability coin like peercoin, will this 200 Gh/s miner be ALWAYS profitable since theres always new and more profibal coins coming out? If that made any sense.

I think I understand what you are asking, but not sure. Anyways, no. Not ALL mining will ALWAYS be profitable because any new coin involves speculation,and even the existing coins are speculative because it's still an emerging sector. Any decision has a cost, the cost of a decision is measured in terms of the forgone alternatives. When you decide to aim 200gh/s at one coin, it will always be measured against what else it could have mined. "ROI" is often misused here, but it is a lagging indicator, a measure of historical performance in term of present valuation. Since emerging coins are new there is more risk, and difficulty in forecasting demand, which in a decentralized system leads to valuation. Simply said, there are no guarantees in mining new or existing coins, but more risk/reward is implied with newer coins. Profit is the reward for making the best economic decision, but cost comes in many forms (opportunity cost, hidden cost, etc).

DarkMiningBTC

full member

Activity: 156

Merit: 100

I'm wondering this because I think this is the case, if BTC is low the alts seem to be low (in profit), I'm wondering that like lets say u had a 200 GH/s miner and as always BTC's difficulty is to high, you go to a much higher profability coin like peercoin, will this 200 Gh/s miner be ALWAYS profitable since theres always new and more profibal coins coming out? If that made any sense.

Topic: Do SHA 256 Alt coins depend on btc? (Read 699 times)