Topic: "FoundBlocks" on my Antminer S5 (Read 1843 times)

Yes I agree totally. What you are describing in the currency world (Or equities, commodities, futures, options, etc...) would be called a risk/reward ratio. I am currently making a profit. A little less than 50% not accounting for hardware. I generally sell that off when new more efficient hardware is either just released or about to be. That hasnt been happening as much as it used to but this is why I generally dont account for hardware costs when doing a basic daily p/l. Besides I also buy all my equipment used so its not that much. I paid less than 5000 for all 20T...including PSU's. I got the PSU's from my old dell 2850's for free I ran all the electricity myself so there was only an additional few hundred in wire, cooling, etc. My elec cost per KwH is also very low at 9.7 cents.

Funny....I had actually calculated that in order to have an acceptable risk/reward ratio that I would need to buy roughly 2.8 PH of hardware. At that level you would have about an 80% chance of finding a block every 36 hours. Anyone reading this should not bet on that number. I ran several statistical calculations based upon my semi-limited knowledge in BTC and a great deal of knowledge in statistical math. So I was close. I was just asking if you would do it....not a guarantee where there are none. Even with 20 PH there is no guarantee however as you said the odds increase linearly. Thats a pretty serious investment though. CoinWarz calculates that with 2PH you would gross $5,704.54 per day. A block a day would be 7k or so. So you are only making a small amount more solo mining but without any guarantee that you will make even that. Whereas if you took the same equipment and pool mined you are guaranteed to make the 5700 a day.  I just don't see the the slightly greater profit potential as a better way to go over the slow ride with a (semi) guarantee.

I think I will just stick to pooled mining. I appreciate the answers to my questions. Thank you all. I'm just the type that if I were to lose money when I could have made a profit on the slow boat I would be pretty pissed at myself. I'm an investor not a gambler and the fast buck never works out in the long run

Thank you to all for your replies and wisdom

You don't know that. When you're mining something different (like on a different pool), you are mining different work and if you find a block on one pool it doesn't mean you would have found one mining solo. The opposite is also true, you may not have found one doing pooled mining but you may have theoretically found one mining solo at the same time.

There is no correct answer to this. That's a question only you can answer for yourself. The smaller your hashrate, the more you stand to gain by finding a block, but the less you stand to lose - however you chances are ridiculously small. Then as your hashrate climbs, you go into a concurrent rise and fall equation - the amount you stand to gain decreases while the amount you stand to lose increases but your chances climb. For there to be virtually minimal risk you need to average something like 5 blocks every block change which means you need to have 0.5% of the network hashrate or 2PH. Even then, if diff is changing, you need to guarantee more blocks as a whole diff change may pass without you finding a single block so you'd need twice as much to guarantee finding at least one block.

Personally I think if you're not gaining money mining due to not having very cheap electricity, then you may as well be solo mining to have a chance at making a profit, but then you must accept that you are actually gambling.

The non-deterministic random nature of mining makes it impossible to give a correct answer as nothing can take away that variance.

Thanks for the quick reply. Man that sucks. This means that if I had been solo mining this whole time I would not have made one cent yet. Its only been since May that I ramped up to my current hashrate but still....geesh. Im still not running P-hashes but I would have thought that I would have had some luck with 20 T-hashes in 3 and half months. I think Ill just stick with PPLNS pool mining.

Just outta curiosity....What would be the minimum hashrate you would consider enough to attempt solo mining? Luck not withstanding.

Yes it will show any blocks found. However bear in mind that if you're mining on a proxy pool that mines random shitcoins in addition to bitcoin, it will show up blocks as any of the random other shit you're mining.

I understand how the different pool payments work.Tthis question is NOT about payout. What I would like to know is if my S5 will reflect if I find a block while mining a pool using pplns or pps. I know that if I'm solo mining it would increment with each block I find. But with PPLNS will it do the same? Or is it unaware if it finds a block using a pool as such? Im trying to decide whether to solo mine or not. In the time I have been mining I have always used a pool. My S5 has never reported finding a block and if when pool mining this would show then based upon my experience so far I would not have found a block. But if this field isnt updated when pool ming then I have nothing to go on. I realize its luck...just trying to get some supportive real world statistics for my setup and speed if possible.

Thanks

Note: If this is posted in the wrong forum please move it. I was torn between mining and mining software. This just seemed a better match.