Liquidating alts into BTC to sell for fiat. Seen this happen many times when BTC rises.
Worse yet! (and, yes, understood, that makes sense, but, as I said, that's worse yet, and further undermines your argument).
mine those coins into oblivion by immediately
Ever heard of difficulty?
To that I reply what may sound like an idiotic
ever heard of ASIC? Really, flound, I can't believe I'm hearing this from one of the most important pool operators around. ASIC cuts scrypt power costs by what? Over 900%? Said another way, ASIC mining variable costs are 1/10 that of GPU mining? (That's just to throw out low-ball figures - the high end is around 1/20th the cost, so get ready.) "Ever heard of difficulty?" Are you serious? At a 1/10 cost to mine, difficulty could rise 10 fold and the ASICs would still be profitable!!!! Where do you think the widely distributed user base and secure network will be by then? 99% of scrypt coins are currently NOT PROFITABLE using GPU, *ALREADY*, and price isn't rising. Why do you think that is happening? You think those coins will be able to recover after the ASIC demolition? You're dreaming pal. As soon as they go back to profitable for the ASIC, those same ASICs will be back like zombies. The position you are arguing is untenable, and your argument (or lack of as it were) only more clearly reveals that fact. As I said, I can't believe I'm hearing this from you. I can only guess that you must have a very strong predisposition that needs to be reinforced at whatever cost. In any event, let's promise to get together and talk about this again once diff has risen by 1000% (you and the handful of ASICs still mining on Multipool
).
I'm not sure what you're trying to say. Difficulty adjustment ensures a constant supply of coins no matter what the network hashrate is.
Yes, you'll need an ASIC to mine scrypt efficiently, you pretty much do right now. Just because people have ASICs does not mean that more coins per day will magically be produced. The production rate will be the same as it is now. Some (One?) scrypt coin(s) still have slow difficulty adjustments, which means that the hashrate of those coins will most likely start swinging violently every few days until a faster adjustment is implemented. Still, I can't see LTC getting caught in a difficulty trap unless most of the dedicated hash on it drops off and I just don't see that happening.
I missed this before . . . sorry.
You're not sure what I'm "
trying to say"? It's pretty clear if you stay with what I said and don't unnecessarily clutter the subject.
Why would you want to unduly complicate and confuse by introducing irrelevant comments like "more coins per day will magically be produced" or "difficulty adjustment ensures a constant supply of coins no matter what the network hashrate is"? What do either have to do with what I was saying?
If you want to understand, you need to limit your comprehension efforts to what was said, and that was:
EXTREMELY LOWER ENERGY RELATED MINING COSTS = LOWER PRICES (unless everyone is holding long term
)
That's it in a nutshell. Don't convolute the issue. Forget about hashrates and difficulty. Use the scientific method and
change only one independent variable at a time = try calculating profitability using 1/10 to 1/20th the former cost of electricity. Do that before trying to get cute.
Start calculating from that base, and then, later, you can continue on towards more 'complicated' calculations like: how low could price go before the ASICs are no longer profitable? I'll give you a very direct hint on that one: at today's price, diff, hashrate, etc., (holding all other variables constant - all other things being equal, as they say in layman's terms), DOGE could fall to .00000005 - 0.00000010 and the ASICs would still be profitable on a variable cost only basis (ALL OTHER THINGS BEING EQUAL), and you can bet they'll be mining 'till they drop' as they do everything they can to eke out whatever return they can before turning into very costly paperweights.
BTW, now you'd be prepared to change other variables, like, for example, hashrate (which would directly effect dependent variables, which in this case would be difficulty, which, in turn, keeps production relatively constant as you assert, correct?) Double the hashrate, and now you've got a lower ASIC profitability range of 10 to 20 satoshi, quadruple the hashrate and that lower range turns into 20-40, etc., etc. As I said in the post that you chose to unnecessarily complicate, difficulty would rise proportionately with hashrate . . .
Now, here's what's complicated (apart from being able to close your eyes and visualize a rotating cube)
: normally, price would rise with rising hashrate, rising difficulty and decreasing production (caused by another independent variable which is reward 'halving').
Why is that not happening?That is where I left you in the post that you had difficulty understanding.
Why is that dynamic turned upside down? Is it that the answer to that question is not suitable to your preconceived notions? Is it that the answer is not in line with your agenda? Is this the complication that upsets your applecart? Might this be what you are not sure about and what drives you to turn a relatively simple equation into a tortuous and obtuse labyrinth?
P.S. Kind of glad that I missed your original response so that I could bring this very simple but very undesired reality back front and center, since, by the look of things, a lot of people are still scratching their heads.
