mining is crap, the blockchain should compensate for electricity costs otherwis-

Lumada

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Quote from: lihuajkl on December 17, 2015, 06:21:47 AM

There is no point for doing that at least the difficulty is still increasing and more mining machines are joining it. The number of bitcoin transactions per second is trending up. The collected tx fees becomes more to reward miners than before. Many miners are still getting a lot of profits. And bitcoin price continues to move up. It is all goods news.

If the miners do not feel they are rewarded, they can turn off the miners. The remaining miners will have higher rewards each.

jonnybravo0311

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Quote from: hazenyc on December 17, 2015, 07:21:44 AM

Quote from: jonnybravo0311 on December 15, 2015, 11:50:34 PM

Um... no, the blockchain most certainly does not compensate you. It also doesn't care that a dusty old S1 is too power hungry to be turning a profit. The blockchain is nothing more than a distributed ledger that records transactions, which are grouped into blocks and verified by proof of work.

Producing oil is still profitable for some, even at these low prices. Is oil a cruel bitch because now all the expensive shale oil operations incur daily losses at these prices? No! The market compensates the low-cost producers, in economics this is called competition. If you find oil should you go dig for it with a shovel and a soda straw? No! Your old S1 is a shovel. The S7s and 16nm tech are the low-cost producers today and it's they who get compensated. The blockchain is a ledger yes, but the validation of this ledger by mining is compensated with the block reward. So it compensates *somebody*, but it may not be you.

I'm well aware of the concept of competition

. All I'm doing is correcting your terminology. The blockchain DOES NOT compensate you, me or anybody else regardless if I've got an S7 or my CPU mining. It is a distributed public ledger that records the transactions, including the generation of the block rewards.

There are two things that provide me compensation as a miner: the block reward for the generation of the new block, which by the way is only going to happen until 21,000,000 total BTC have been created, and fees associated to the transactions that were included in that block.

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Quote from: justbeingmanan on December 12, 2015, 07:41:03 AM

satoshi really fucked up on the fee structure he should of calculated it to scale with electricity costs bitcoin will be doomed otherwise... no miners... no security... no transaction process

Miners are rewarded with the block reward, miners are being compensated. It's just that the competition is high, you did get the reward with an outdated inefficient miner. Plenty of miners have their electricity cost covered and profiting. You cannot expect a reward structure which pays everyone who switches on their old dusty miner.

Quote from: justbeingmanan on December 12, 2015, 07:41:03 AM

i can't even mine at home anymore well i can but i would be at a net loss whats the incentive???

That is a cost of mining equipment issue, not a block reward issue Wink

hazenyc

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Quote from: jonnybravo0311 on December 15, 2015, 11:50:34 PM

Um... no, the blockchain most certainly does not compensate you. It also doesn't care that a dusty old S1 is too power hungry to be turning a profit. The blockchain is nothing more than a distributed ledger that records transactions, which are grouped into blocks and verified by proof of work.

Producing oil is still profitable for some, even at these low prices. Is oil a cruel bitch because now all the expensive shale oil operations incur daily losses at these prices? No! The market compensates the low-cost producers, in economics this is called competition. If you find oil should you go dig for it with a shovel and a soda straw? No! Your old S1 is a shovel. The S7s and 16nm tech are the low-cost producers today and it's they who get compensated. The blockchain is a ledger yes, but the validation of this ledger by mining is compensated with the block reward. So it compensates *somebody*, but it may not be you.

lihuajkl

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There is no point for doing that at least the difficulty is still increasing and more mining machines are joining it. The number of bitcoin transactions per second is trending up. The collected tx fees becomes more to reward miners than before. Many miners are still getting a lot of profits. And bitcoin price continues to move up. It is all goods news.

Bitfirm

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move to smaller coins

Amph

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there is only one thing that compensate you and it is the demand, higher demand better price, higher fee which translate in more reward for you

that's it, do not search for other profit, miners already can earn a lot of profit, with merged mining activity if their bills is cheap

QuintLeo

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Quote from: justbeingmanan on December 12, 2015, 07:41:03 AM

-e whats the point there should be compensation to cover the costs of mining the fee structure should be raised so what if the fee is 1 cent thats still better than paying 30% on bank fees

i can't even mine at home anymore well i can but i would be at a net loss whats the incentive???

well years ago it was worth it but as mining becomes industrial even the industrials will lose the incentive at least let the [Suspicious link removed]pensate for 50% electricity costs something needs to be done i want to mine again with my dusty s1

satoshi really fucked up on the fee structure he should of calculated it to scale with electricity costs bitcoin will be doomed otherwise... no miners... no security... no transaction process

Why should you be compensated for living in an area with high electric rates?
That is YOUR choice.

Nobody ever guarenteed that mining would always be profitable for everyone.

Lumada

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The fee is already higher than a few years ago. Mining is not for high electricity cost miners now. If you pay over $0.2/kwh, it is better to stop mining.

jonnybravo0311

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Um... no, the blockchain most certainly does not compensate you. It also doesn't care that a dusty old S1 is too power hungry to be turning a profit. The blockchain is nothing more than a distributed ledger that records transactions, which are grouped into blocks and verified by proof of work.

hazenyc

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Quote from: jonnybravo0311 on December 12, 2015, 09:23:28 AM

LOL! The blockchain should compensate... hahaha!

um.. it does compensate. In the form of 25 BTC per block.. Apologies if your mining hardware is not competitive at this price/difficulty combination, but there's A LOT of hashpower at there that is turning BTC --> $$$

notlist3d

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Quote from: lumeire on December 12, 2015, 11:24:16 AM

Quote from: notlist3d on December 12, 2015, 11:17:35 AM

Sell the S1 to someone with free or cheap electricity. There is no way with regular electricity it makes sense to run a S1.

Better yet get yourself an extension cord then plug it in a public establishment, or bring it in your office and mine there.

At least thats what Im doing with my old miners. Grin

In a lot of cases this would cause loss of job. Bringing in unauthorized equipment in a lot of places is a no-no.

I'm not sure what type of place you work in but normally these outside devices scare companies. And they will want to keep them off of the network.

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Quote from: notlist3d on December 12, 2015, 11:17:35 AM

Sell the S1 to someone with free or cheap electricity. There is no way with regular electricity it makes sense to run a S1.

Better yet get yourself an extension cord then plug it in a public establishment, or bring it in your office and mine there.

At least thats what Im doing with my old miners. Grin

notlist3d

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Quote from: justbeingmanan on December 12, 2015, 07:41:03 AM

-e whats the point there should be compensation to cover the costs of mining the fee structure should be raised so what if the fee is 1 cent thats still better than paying 30% on bank fees

i can't even mine at home anymore well i can but i would be at a net loss whats the incentive???

well years ago it was worth it but as mining becomes industrial even the industrials will lose the incentive at least let the [Suspicious link removed]pensate for 50% electricity costs something needs to be done i want to mine again with my dusty s1

satoshi really fucked up on the fee structure he should of calculated it to scale with electricity costs bitcoin will be doomed otherwise... no miners... no security... no transaction process

You would need to get new gear. You cannot expect generations old gear to work today in normal situation. You cant unplug a miner for a long period then want to mine it again.

Sell the S1 to someone with free or cheap electricity. There is no way with regular electricity it makes sense to run a S1.

p3yot33at3r

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Quote from: justbeingmanan on December 12, 2015, 07:41:03 AM

-e whats the point....

Sorry you missed the boat - by about 2 years Wink

MRKLYE

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Quote from: jonnybravo0311 on December 12, 2015, 09:23:28 AM

LOL! The blockchain should compensate... hahaha!

^ 100x This. I love when noobs come onto the forums and try to change things without even so much as understanding how this shit actually works.

OP, Do a little bit more research before you come on the forums spouting absolutely retarded shit (for lack of a better term, no offence) they know 0 about.

Honestly you should likely look into how exactly mining works and the evolution of it in the past few years before you come and gum up the forums with absolute bull-bollucks like this. Welcome to the forums..

jonnybravo0311

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LOL! The blockchain should compensate... hahaha!

nonbody

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Quote from: justbeingmanan on December 12, 2015, 07:41:03 AM

-e whats the point there should be compensation to cover the costs of mining the fee structure should be raised so what if the fee is 1 cent thats still better than paying 30% on bank fees

i can't even mine at home anymore well i can but i would be at a net loss whats the incentive???

well years ago it was worth it but as mining becomes industrial even the industrials will lose the incentive at least let the [Suspicious link removed]pensate for 50% electricity costs something needs to be done i want to mine again with my dusty s1

satoshi really fucked up on the fee structure he should of calculated it to scale with electricity costs bitcoin will be doomed otherwise... no miners... no security... no transaction process

Mining becomes industrial. The one who is able to get cheap electricity will make profits. As bitcoin's price is increasing, some miners probably will be attracted to turn on their machines or upgrade their old ones.

justbeingmanan

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-e whats the point there should be compensation to cover the costs of mining the fee structure should be raised so what if the fee is 1 cent thats still better than paying 30% on bank fees

i can't even mine at home anymore well i can but i would be at a net loss whats the incentive???

well years ago it was worth it but as mining becomes industrial even the industrials will lose the incentive at least let the [Suspicious link removed]pensate for 50% electricity costs something needs to be done i want to mine again with my dusty s1

satoshi really fucked up on the fee structure he should of calculated it to scale with electricity costs bitcoin will be doomed otherwise... no miners... no security... no transaction process

Topic: mining is crap, the blockchain should compensate for electricity costs otherwis- (Read 1445 times)