Newb here. Sorry if this is well known but I've started to notice a strong correlation between my mining profitablility and the market direction. When the market is moving up, profitability is high and when it is moving down, profitiability is low regardless of where the price actually is.
This is logical, price appreciation of coin would of course result to high profitability
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Yes, I know difficulty plays a role but why would difficulty swing so much?
Some are moving their machines or chasing whats the most profitable coins to present, some are using multi switching or auto switching miner. Adding some folks that are starting to engaged in mining journey despite of machine or parts inflation
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Why would people be mining a coin more when the price is low? All coins have matched this same general trend which would suggest every coin became more or less difficult at the same time which would imply people going offline and online together. If all coins are going down, there should be decreased difficulty during a high-volume selloff, right?
With all of this volatility, I can't figure out if this is a causation or simply a lag response to the actual price.
With all of this volatility, I can't figure out if this is a causation or simply a lag response to the actual price.
You seem right in some aspects, when the price and profitability goes down only the fittest and wise will survive, its a part of mining journey