Just how bad was today's difficulty increase?

saqwe

sr. member

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Quote from: keybaud on June 06, 2011, 01:05:30 PM

Quote from: Jack of Diamonds on June 06, 2011, 12:42:39 PM

Quote from: kiwiasian on June 06, 2011, 12:07:31 PM

Look at how quickly all the prices shot up.

so by the logic you're using the bitcoin difficulty is reacting to the market....

well actually thats right imho
more and more people are getting aware of bitcoins, start mining, soon we will hear stories like " i made a fortune with bitcoins..." (or already herd them like in that infamous youtube-vid)

and more people start mining....

so diffculty and market price are like evil twins Roll Eyes

bcpokey

hero member

Activity: 602

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Quote from: kiwiasian on June 06, 2011, 12:07:31 PM

The reason why I'm concerned is because the entire Bitcoin economy is about to crash and the difficulty still goes up.

Look at how quickly all the prices shot up. At one point everyone is just going to sell and be done with it--then crash.

Right, that's a very reasoned argument. "Bitcoin is becoming successful so it's going to fail!"

If you have a reason why "everyone is just going to sell and be done with it" that'd be enlightening.

I wish I could multiquote...

Above poster, that's some sweet sweet graphing going on.

Freakin

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keybaud

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Quote from: Jack of Diamonds on June 06, 2011, 12:42:39 PM

Quote from: kiwiasian on June 06, 2011, 12:07:31 PM

Look at how quickly all the prices shot up.

Look at how quickly difficulty has risen. Then tell me with a straight face BTC value does not react to difficulty of acquiring new BTC.

Thanks and bye

The price has always gone up before the difficulty, so by the logic you're using the bitcoin difficulty is reacting to the market....

Jack of Diamonds

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Quote from: kiwiasian on June 06, 2011, 12:07:31 PM

Look at how quickly all the prices shot up.

Look at how quickly difficulty has risen. Then tell me with a straight face BTC value does not react to difficulty of acquiring new BTC.

Thanks and bye

kiwiasian

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The reason why I'm concerned is because the entire Bitcoin economy is about to crash and the difficulty still goes up.

Look at how quickly all the prices shot up. At one point everyone is just going to sell and be done with it--then crash.

ZombieDeity

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Quote from: Chucksta on June 06, 2011, 11:04:24 AM

I'm definitely not complaining. Made my money back, and now any money made is going towards my Amsterdam trip in August

Even that will be covered in a week's time

Sounds like a fun way to spend your coin! What's your hashrate, Chuck? ... if you don't mind my asking.

ZombieDeity

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Quote from: BitLex on June 06, 2011, 11:35:01 AM

so the difficulty went up by roughly 30% while at the same time the price jumped up more than 100% (!)
and everyone's complaining about earning less.

i don't get it.

You're right. It's ridiculous to complain about that. When there's an increase in difficulty, I just head to the bitcoin profitability calculator and check out how the new numbers affect my monthly income. I'll still make more now than I would have two weeks ago. Also of note is that the price increase came BEFORE the difficulty increase in anticipation of it, meaning you actually make more on the bitcoins mined right up to the increase because they were easier to get relative to their value. Quitchyerbitchin!

Tukotih

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Quote from: kirby9058 on June 06, 2011, 11:38:38 AM

My bitcoin/24 hours seems to have dropped a little. Using 1 5830 I've gone from an estimated .75 a day, down to about .5 a day. But the value has increased, so I'm really bringing in the same amount of money.

I think you are even bringing in more money than before.

I have a total hashrate of about 420Mh/s and my $/day have risen dramatically.
Too bad I bought a $50 virtual credit card a week ago for about 6BTC. If I had only waited I could have gotten it for below the half price Tongue

TraderTimm

legendary

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Just thought this up.

(And it may be entirely unpractical due to lack of any real enforcement other than 'web of trust' kind of ratings.)

How about instead of mining-pools, you have loan-pools?

Miners with a given Mhash capacity point their rigs at the operator - in exchange, the operator pays out in full the week (or whatever interval) of calculated output to the miner, who goes away happy and spending coin on things. However, the 'contract' part of this is his rig has to maintain an uptime of the time interval of payout.

This may be silly for anything other than working with close friends or business partners, but could be a way to extend a 'credit' like service using mining.

I know it is full of holes, but still interesting in theory.

kirby9058

newbie

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My bitcoin/24 hours seems to have dropped a little. Using 1 5830 I've gone from an estimated .75 a day, down to about .5 a day. But the value has increased, so I'm really bringing in the same amount of money.

ocharry

newbie

Activity: 28

Merit: 0

Quote from: BitLex on June 06, 2011, 11:35:01 AM

facts:
at the last difficulty step to 434k 1BTC was traded at ~8.5USD
at the current difficulty step to 567k 1BTC is traded at ~18.5USD

so the difficulty went up by roughly 30% while at the same time the price jumped up more than 100% (!)
and everyone's complaining about earning less.

i don't get it.

Agreed. People are just impatient I guess.

BitLex

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facts:
at the last difficulty step to 434k 1BTC was traded at ~8.5USD
at the current difficulty step to 567k 1BTC is traded at ~18.5USD

so the difficulty went up by roughly 30% while at the same time the price jumped up more than 100% (!)
and everyone's complaining about earning less.

i don't get it.

Chucksta

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I'm definitely not complaining. Made my money back, and now any money made is going towards my Amsterdam trip in August

Even that will be covered in a week's time

Jack of Diamonds

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Merit: 251

The price rose by a fair bit and the difficulty only went up a third or so. Don't see a problem here.

As long as price keeps increasing in steady steps I don't see a problem even with difficulty in the millions.

If price drops too much, mining capacity will drop until difficulty comes down and it's profitable again. Pretty simple.

AngelusWebDesign

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Merit: 250

I think you're always going to have "the best of both worlds" the last few days before a difficulty reset. You're mining at the "older" difficulty rate, but getting virtually all the benefit of the new BTC value.

In other words, the value of BTC doesn't shoot up after a Diff. increase -- it does so about a week before, as people anticipate the coming change. In financial circles they use the phrase "it's already baked in the cake".

The increases were TAKING INTO ACCOUNT the Diff. reset on 6/6 -- which is why they didn't go up much after the reset itself. The changes were already baked in the cake.

Sukrim

legendary

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It just depends on how much you sell your BTC for, if that's a bad or a good thing.

If 1 Bitcent would now be worth 100 USD, you would earn much more than at the ~17USD/BTC before.

kiwiasian

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My mining calculator shows a decrease from 2.3 BTC/day to 1.7 BTC/day.

Sad

Topic: Just how bad was today's difficulty increase? (Read 3492 times)