Topic: is the network hash dropping? (Read 7226 times)

Hash rate might only drop temporary due to not profitable and miner off their ASIC.. but right now the price of BTC went up so I guess they turn back on immediately..

Looks like normal service has resumed.

Hash rates will not be dropping, I am still expecting a 15% increase next time, then another 10-15% increases each time for the rest of the year. Come end of Jan and feb we can expect 40-50% increases.

Moral of the story for small to medium players, buy and hold bitcoins. All ur mining rigs will become expensive coffee tables within a year.

sorry, i considered quoting from both posts but i decided to be lazy

*edit* thanks for explaining BurtW.  sometimes i do need a translator, haha

Yup it makes sense now.  I feel stupid (but I blame it on a lack of caffeine as part of a balanced breakfast) .

I believe that monkee's comment was a comparing of the nonsense in the thread.  JakeGold says "most nonsensical thing ever...",  monkee then says "If you think that is nonsense well what about this..." and discusses what he thinks is even more nonsensical.

you must've not read the post a few up from yours that says people are shutting down asics then.  why on earth would people be unplugging asics that earn more than they consume in electricity/cooling costs?  they wouldn't, unless they don't like money.

What? That's the most nonsensical thing I've heard all week. How is the hash rate affected by the transaction volume?

I only bother asking because everything else you said was spot on.

^
That obviously

Apparently most people think there is some big meter attached to the network that measures the global hash. This is not true at all.

When you go to websites that tell you the global hashrates, they are giving you the information based upon a calculation. The look at the difficulty (a known number) and the time between solved blocks (a known number) and they calculate an approximation of the hash rate required to perform that. They average these numbers over several timeframes to smooth out the curves and give us reasonable approximations... but these are of course just approximations and can be skewed by large difficulty increases.

The global hash does not drop when difficulty increases, it is just a temporary lag where calculations are not reflecting reality quite so closely.

One of the contributing factors to this apparent loss of hash rates we are experiencing is the huge volume of transactions recently. The number of transactions is increasing faster than the actual hash rate. Additionally, as the global hash increases, it becomes more difficult to ship or manufacture enough hash to make a percentage increase.  You cannot have exponential hash increases forever, because if you could we would need the entire energy output of the sun by 2016 to increase the global hash by another 50%. It is slowing because it has to. 40% or 50% increases every two weeks simply cannot continue. There just is not enough energy available. I saw somewhere a chart where someone projected that if we kept increasing the hash rates by 50% every 2 weeks and had 28nm chips that by 2015 we would be using the entire energy output of the united states just for hashing.

It'd seriously wager that it's mostly BFL orders too. For a long time they were the only company taking unlimited ASIC orders. And if you look at their shipping update blog, they were cranking them out like no tomorrow for a while, but have recently slowed down shipments.

Thank you for this link! The charts here put things in a very nice visual relationship.

KNC ships the next batch (probably >2 PH/s conservatively and maybe closer to 2.5 PH/s realistically) in 6 days so calling it a plateau is a little premature.
Then HF batch one is mid Dec a little smaller maybe 0.5 PH/s.
The HF batch two is unknown since the first batch got pushed back (will it be a month late? will it ship right after batch 1?) but it looks to be larger maybe 2 PH/s max.

The rest should be the usually slow BFL dribble and small blocks by the other three (ASICMiner, Avalon, Bitfury) but my guess is they are not going to be significant compared to the existing hashrate and the three events above.

Cointerra is saying "on track for late Dec" but given holidays (vacation time) and the late tapeout, my guess is "late Dec" is code word for "oops at the last minute we just missed it and we are looking at mid January". Regardless of it being late Dec or early January we aren't going to be sitting @ 4 (or even 5) PH/s for that long.

The overall decrease is exponential growth is fairly easy to explain. Most of the orders currently being shipped were ordered when difficulty was 5-10 times lower. Back then it was easy to fall for the "im gonna be rich" mentality. Now, there is no miner on the market that even if delivered today will make bank. Very few new orders are being placed for miners, and now that KNC has shipped very little new hash speed is hitting the market. BFL, Avalon, ASICMiner are done with new hardware. It's just not profitable enough even at cost.


The next jump will be cointerra. I predicted months ago the plateau would be around 4-5 Phash. We are there.

I don't think so, seems to me Bitcoin is the most profitable to mine.....

Huh, hundreds of Th/s switched to other coins? Show me these coins I want to see them being mined to death.

+1

http://eligius.st/~wizkid057/newstats/topcontributors.php

Look at the bottom 2/3 of that list... I don't think a lot of people are shutting down miners.

That won't work in practice as most miners have failover pools set in their configs.
Even if all pools are DDoS'ed, there's still p2pool, which is quite difficult to shut down.

But there can be other kind of manipulation.
Say some mining hardware manufacturer has a lot of mining power already deployed and wants to manipulate network hasrate.
It can manipulate network hasrate to a some extent by diverting some of its hashrate to PPS pools while performing block withholding attack.
So they are getting paid while the number of actually found blocks drops.
There are at least 2 pools offering PPS - BTCGuild and gigavps' private pool.
While the fees are significant, it's a lot cheaper than just turning off yor mining operations.

You forget that there's no point in shutting down your mining rigs completely unless it's broken of course. When your revenue gets close to electricity costs, you're better off selling your rig to someone with cheaper/free electricity. This way hashing power just changes hands, while overall impact on the network hashrate is negligible.