Topic: If you want to make more BTC... don't mine at Deepbit - page 2. (Read 3225 times)

First off, I apologize for starting a new thread.

I find myself absolutely astounded at the amount of ignorance about how Bitcoin actually works. I will admit to not understanding it fully in all of its glory, but some of it isn't really that hard.

Totally ignoring any other claims about network security, here is why every miner on Deepbit should switch to another pool.


Tycho charges a 3% fee for Proportional work and a 10% fee for his Pay-Per-Share model. If any miner were to switch to a 0% fee pool,  of which there are a few, that miner would earn 3-10% more BTC.

People have the misconception that being in a larger pool guarantees you will make more BTC. This isn't the case. Having more hashing power just means that the variability of what you earn for each block will be more stable. On a smaller pool, the amount an individual earns for each block will vary more, sometimes by several bitcents. Averaged out over time, usually 7 days is all it takes, the total amount earned from each pool, if you discounted the fees they take out, would be the same.

Use the calculator at http://www.alloscomp.com/bitcoin/calculator.php.

The numbers it provides are by no means a guarantee of what you will earn forever, but they are statistically correct for the current snapshot of the network. Over a long enough period of time, if the difficulty and your MHash rate stay constant, that is the number of BTC you will earn in a given day, week, month, even year. The size of the pool you mine in has absolutely no effect on it. The only thing you're doing is giving away a percentage of your earnings for whatever services the pool provides you that you can't get elsewhere.

With the exception of Tycho's instant payout button, there is NO advantage to mining on Deepbit that can't be found elsewhere. Consider that when you decide to go shopping around for a new pool.