The biggest difficulty jump I have ever seen - page 3.

DeathAndTaxes

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Gerald Davis

Quote from: Perseus353 on October 28, 2013, 06:14:58 AM

To be honest, it's not as bad as I thought it might be.

If you follow the trends of the network, a 45-50% jump in hashrate and difficulty was to be expected, but if the size of the network grows

I've been mining with my new Jupiter for a week now. Performance has been fluctuating 480-550 Gh/s over the past week, with daily take varying 0.81-1.1 BTC per 24h (average 1.0 per day) -- depending on performance, pool luck (BTC guild) etc.

I expected a 50% rise to mean a 30-35% drop in revenue down to about 0.6-0.7 BTC per day, but it's been better than that. Even though the the network jumped as much as it did, the daily take on the Jupiter is still 0.75-0.85.

Your revenue is based on difficulty. Until difficulty adjusts of course you will make the same revenue. If difficulty adjusts up 50% then you will make 1/1.50 = 66% of what you were making before.

waltermot321

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100%, which incur few month from now..

rampalija

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man when they launch new ASICs the difficultiy will increase faster and faster!

high110

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A Blockchain Mobile Operator With Token Rewards

Quote from: DeathAndTaxes on October 26, 2013, 08:17:37 PM

Quote from: wobber on October 26, 2013, 10:59:55 AM

Why doesn't DIFFICULTY affects price? Any TL;DR?

Supply remains the same regardless of changes in difficulty. New production remains the same regardless of difficulty.

Now price does affect supply. When price goes up miners profits (in USD) increase and their electrical costs denominated in BTC decrease. This fuels more hardware purchases and difficulty rises. If prices falls then marginal miners (least efficient gear and higher energy cost) get squeezed and eventually turn off rigs so difficulty declines until price rises enough that they are profitable again .... and the cycle goes on.

But it's perception of the increase in mining gear prices and Hash that has an indirect effect on prices that drives up the value. Most small time miners will mine when prices drop to 5 dollars. I think it's actually the big miners that stop...since they care about profitability. I think there are a lot of people that mine as a hobby. Not saying you're wrong...your economics sounds pretty impressive...just that there is an effect on increase/decrease difficulty.

Perseus353

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To be honest, it's not as bad as I thought it might be.

If you follow the trends of the network, a 45-50% jump in hashrate and difficulty was to be expected, but if the size of the network grows this much, the drop in revenue wasn't as much as I thought it would be.

I've been mining with my new Jupiter for a week now. Performance has been fluctuating 480-550 Gh/s over the past week, with daily take varying 0.81-1.1 BTC per 24h (average 1.0 per day) -- depending on performance, pool luck (BTC guild) etc.

I expected a 50% rise to mean a 30-35% drop in revenue down to about 0.6-0.7 BTC per day, but it's been better than that. Even though the the network jumped as much as it did, the daily take on the Jupiter is still 0.75-0.85.

nexus99

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Sad to see that big drop in BTC production. 100 GH/S really is the entry point these days. 1 BTC per day is like 1200 GH/s.

theonewhowaskazu

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I think there will continue to be large difficulty jumps, not because of more efficient asics, but because existing 28nm chips will get lowered in price by a lot. The huge cost of making these chips is upfront. Actually producing the chip is quite cheap comparatively. While these asics will be the most effective for a while, the hardware companies will try to milk it for all its worth by slowly lowering its price. This means all of a sudden there are a ton more people purchasing. Finally when a more efficient asic comes out I expect the 28 nm ones to be producing only marginally more Bitcoin than their electricity cost.

DeathAndTaxes

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Gerald Davis

Quote from: BitcoinHeroes on October 27, 2013, 09:09:09 AM

Quote from: TheDragonSlayer on October 26, 2013, 10:49:21 PM

The real hike is coming when they ship 2 THs ASIC

It would be 10 TH/s ASIC after that, the technology just keep getting better

Probably not. We will be at 28nm a while. ASIC Miners didn't get better faster due to Moore's law it simply was designers "jumping ahead" to smaller processing nodes. 28nm is as economical as it gets in 2013/2014. It will be a while before 22/20nm is cost effective.

At 28nm it looks like from three different vendors you are looking at ~0.7J /GH at the wall. So 2 TH/s is probably around 1400W. US 15A outlet is rated for 1440W continual load. Now you may say in Nowhereistan the standard outlet is 240V, 33.8A but mining is perfectly parallel. It makes little sense to sell a 2 TH/s and 4 TH/s unit you can just sell 2 TH/s units and sell some people 1 and other people 2.

BitcoinHeroes

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Quote from: TheDragonSlayer on October 26, 2013, 10:49:21 PM

The real hike is coming when they ship 2 THs ASIC

It would be 10 TH/s ASIC after that, the technology just keep getting better

wobber

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Quote from: TheDragonSlayer on October 26, 2013, 10:49:21 PM

The real hike is coming when they ship 2 THs ASIC

When this will happen?

TheDragonSlayer

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The real hike is coming when they ship 2 THs ASIC

beegatewood

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Quote from: wobber on October 26, 2013, 10:59:55 AM

Why doesn't DIFFICULTY affects price? Any TL;DR?

Because miners and investor are two different categories. Although difficulty does correlated somehow. Like the difficulty is too high I might as well buy BTC

DeathAndTaxes

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Gerald Davis

Quote from: wobber on October 26, 2013, 10:59:55 AM

Why doesn't DIFFICULTY affects price? Any TL;DR?

Supply remains the same regardless of changes in difficulty. New production remains the same regardless of difficulty.

Now price does affect supply. When price goes up miners profits (in USD) increase and their electrical costs denominated in BTC decrease. This fuels more hardware purchases and difficulty rises. If prices falls then marginal miners (least efficient gear and higher energy cost) get squeezed and eventually turn off rigs so difficulty declines until price rises enough that they are profitable again .... and the cycle goes on.

malevolent

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