Why do Difficulty increases feel like being ass raped??

data55

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Quote from: skottiejay on June 28, 2014, 10:48:38 PM

Because they are, because if you weren't an early adopter in 2009 or whatever you stand no chance unless you can afford to buy $2000 plus machines that pound out high GH/S.

You could always try the donation route, but then people will label you as a scammer, when you are legit in need. Like for instance, no doctors are accepting patience in the area I live, yet I was diagnosed formally as being disabled in my hometown. Therefore I have to pay out of pocket to get any of my medicine, and see a doctor. I don't have insurance, my teeth are falling apart, but I just might be a scammer (warning bitter and satire here)

So basically you are getting your ass raped. In 2011 when they were $14 bucks I was facing one of the worst periods of my life, and I didn't think then to buy maybe one or two when right now I could be holding the future of my life.

Not that there are any generous people on this fucking forum who could take in consideration I've got a fucking grandmother who has 3-6 months to live, a mother going through chemo and my father who might have melanoma.

Anyways, yeah it's an ass rape.

this will change your life more than a couple bitcoins if you actually want it and work it. And thats a FACT.
http://www.daveramsey.com/new/baby-steps/

kendog77

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It is a myth that large miners have an advantage over small miners unless large miners can buy hardware at a lower cost / GH, which is often not the case thanks to companies like Bitmain.

If a large miner buys 100TH at $1.5/GH, and a small miner buys 1TH at $1.5/GH, and they have the same overhead costs per TH, their return per dollar invested will be exactly the same on a percentage basis (the large miner will make 100x more profit, but the large miner invested 100x more capital at the beginning).

I can see mining hardware manufacturers having an advantage over the small miner because they can get hardware at cost, which is why we're seeing KNC and BitFury build such huge farms.

In some ways, small miners with cheap electricity who can run miners in their home have an advantage over large miners because overhead costs will be lower, but the small miner will be very limited in how much they can expand due to power and cooling limitations.

philipma1957

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'The right to privacy matters'

Quote from: xstr8guy on June 28, 2014, 06:12:14 PM

Quote from: cookiemonster7 on June 28, 2014, 03:57:41 AM

soon prices will rise to account for the rise in difficulty, just hold on tight. Cool

Ridiculous. There is absolutely no correlation between mining difficulty and BTC exchange rate.

you can believe that if you choose to . Many don't think you are correct. I think you could be correct. So I will toss this one out.

No 30 year fed bonds that pay 8% are for sale.

8% interest is no longer available .

The entire BTC/ Alt coin creation was a reaction to the worldwide lowered interest rates.

Since these coins offer a chance to get better return rates as long as interest rates are very low these coins have the potential to jump back up to 1k and beyond.

Since the market cap for BTC is well under 10 billion 3 or 4 large speculators can push the price over 1k pretty easily.

skottiejay

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bitcoinnaire

Because they are, because if you weren't an early adopter in 2009 or whatever you stand no chance unless you can afford to buy $2000 plus machines that pound out high GH/S.

You could always try the donation route, but then people will label you as a scammer, when you are legit in need. Like for instance, no doctors are accepting patience in the area I live, yet I was diagnosed formally as being disabled in my hometown. Therefore I have to pay out of pocket to get any of my medicine, and see a doctor. I don't have insurance, my teeth are falling apart, but I just might be a scammer (warning bitter and satire here)

So basically you are getting your ass raped. In 2011 when they were $14 bucks I was facing one of the worst periods of my life, and I didn't think then to buy maybe one or two when right now I could be holding the future of my life.

Not that there are any generous people on this fucking forum who could take in consideration I've got a fucking grandmother who has 3-6 months to live, a mother going through chemo and my father who might have melanoma.

Anyways, yeah it's an ass rape.

DrG

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Quote from: xstr8guy on June 28, 2014, 06:12:14 PM

Quote from: cookiemonster7 on June 28, 2014, 03:57:41 AM

soon prices will rise to account for the rise in difficulty, just hold on tight. Cool

Ridiculous. There is absolutely no correlation between mining difficulty and BTC exchange rate.

Prices may have correlated early on when more that 1/2 the people buying coins were miners, but now the market is so diverse that the two have separated. The price could tank to $10 and most miners would probably continue to mine for a short time considering the ASIC is a sunk investment cost as opposed to GPUs.

xstr8guy

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Glow Stick Dance!

Quote from: cookiemonster7 on June 28, 2014, 03:57:41 AM

soon prices will rise to account for the rise in difficulty, just hold on tight. Cool

Ridiculous. There is absolutely no correlation between mining difficulty and BTC exchange rate.

taipo

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Kia ora!

It increases because you are not the only one that feels like their ass has been reamed.

Mayuyu48

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only few people shutdown their mining rig, also many new hardware is online now
make good contribution to increasing bitcoin difficulty
if BTC crashed to $100, maybe we will see difficulty decreased Grin

cookiemonster7

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Cookie...Cookie.

soon prices will rise to account for the rise in difficulty, just hold on tight. Cool

bbeesley

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Quote from: monim1 on June 28, 2014, 03:06:21 AM

I have also notice that day by day difficulty of mining in increasing.

This is nothing new...difficulty increases have occurred about every 10 days since the inception of bitcoin

there have been a few times when difficulty actually decreased but this is unlikely to occur with the current wave of cheap miners that are regularly coming to market.

see https://bitcoinwisdom.com/bitcoin/difficulty for a historical perspective.

monim1

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I agree with you. I have also notice that day by day difficulty of mining in increasing. Although Atlcoin mining is much more profitable than BTC.

DrG

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The difficulty will fluctuate in increases between 10 to 30% more or less until 2016. Even all next year we will keep having more efficient miners come out which means more power on the network. Sometime in 2016 the block subsidy drops to 12.5 from 25BTC - lots of marginal miners will stop mining.

FlyForFun

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The difficulty will slow down after there is no more profit for manufacturer to produce. But that would be like 10x of the difficulty now.

DrG

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6 Manufacturers are putting out new miner models this month and AsicMiner has made over 100PH/s of chips for use for some farms and miners. You can take the current difficulty and double it to see what it will be at the end of July.

bbeesley

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Quote from: Klubknuckle on June 28, 2014, 12:59:04 AM

Difficulty should be slowing down but still. When?

why would you expect that?

for difficulty to slow, the rate at which new mining hardware comes online has to slow. With the availability of relatively cheap and reasonably powerful hardware like the Antminer S1s or Rboxes anyone with a few hundred bucks can get into the game

as long as new miners keep coming on, difficulty will continue to climb.

Klubknuckle

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Difficulty should be slowing down but still. When?

bbeesley

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Quote from: googlemaster1 on June 27, 2014, 04:51:07 PM

I dislike miners who talk about ROI in terms of $$. Always irked me... don't know about you guys Tongue

.

It makes me sad when people use ROI and clearly don't understand what it means ;-)

hulk

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Quote from: lphelps on June 27, 2014, 10:24:40 AM

Probably been discussed before but I'm not in the mood to search for it.. I don't know how the Difficulty is being determined, but the upcoming increase of 23% is really feeling like being ass raped. I have a real problem with Difficulty going up every god damn 12+ days.. At the rate it keeps increasing, the only people that will make any money in mining are those that had $100K+ to invest in mining gear or cloud mining and was able to get around 15+ THS.

I thought having 1.3 THS was kickass, but it ain't shit... I would have been making over $100 a day 5 months ago.. Now I barely make $25 a day. What the shit is that?!? Unless BTC suddenly goes to $2000+, mining isn't going to be worth the $$$ anymore..

Miners are for fun, if you want profit. Sell your miners for higher then market price.

Hunterbunter

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If you don't mind variance, http://blisterpool.com is paying 20% bonus in devcoins on p2pool block finds at the moment.

jimlite

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Well of course, diff goes up because better and faster asics keep coming out.
Just check GAW miners for the crazy powerful stuff that is out now, and
ridiculous stuff that will be out Q3/Q4.
I just ordered a 13GH Scrypt Asic and already feel it is not enough, but if
you enjoy the hobby and are ok with making a little money, check my sig
for a discount. Good luck.

googlemaster1

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I dislike miners who talk about ROI in terms of $$. Always irked me... don't know about you guys Tongue

.

cosmicapex

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Perhaps repressed memories?

jonsi

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Quote from: lphelps on June 27, 2014, 10:24:40 AM

...
. At the rate it keeps increasing, the only people that will make any money in mining are those that had $100K+ to invest in mining gear or cloud mining and was able to get around 15+ THS.

I thought having 1.3 THS was kickass, but it ain't shit... I would have been making over $100 a day 5 months ago.. Now I barely make $25 a day. What the shit is that?!? Unless BTC suddenly goes to $2000+, mining isn't going to be worth the $$$ anymore..

The ratio of invested money and return is exactly the same for $10 and for $100.000 (assuming you don't get a discount).

iglasses

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You have 1.3Ths of equipment and don't know how difficulty works?

yikes.

TheRealSteve

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FUN > ROI

Quote from: lphelps on June 27, 2014, 10:24:40 AM

Probably been discussed before but I'm not in the mood to search for it..

Then why should we be in the mood to respond? Wink

The difficulty increases to compensate for increased/decreased network hash rates. 2016 blocks should take 14 days. Say it only takes 11 days. The network responds by increasing the difficulty by (14/11)-1 * 100% ~= 27.3%

( Note that this is purely a reactionary method that assumes linearity, so if in the last 6 days the hash rate really climbed by 50% while before that it only climbed by 10% and there's no reason to believe that's going to stop any time soon, the difficulty will have to be adjusted by a relatively big percentage again in another 2016 blocks' time. )

And yes, your prediction is pretty much spot-on. Solo mining for anything but the big farms is already out, and pooled mining for small time miners is also on its way out for those expecting to see any returns on it (never mind profiting).

Of course, you knew this when you got into it, right?

( Just wait until July/August 2016 rolls around. Woo! )

lphelps

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Probably been discussed before but I'm not in the mood to search for it.. I don't know how the Difficulty is being determined, but the upcoming increase of 23% is really feeling like being ass raped. I have a real problem with Difficulty going up every god damn 12+ days.. At the rate it keeps increasing, the only people that will make any money in mining are those that had $100K+ to invest in mining gear or cloud mining and was able to get around 15+ THS.

I thought having 1.3 THS was kickass, but it ain't shit... I would have been making over $100 a day 5 months ago.. Now I barely make $25 a day. What the shit is that?!? Unless BTC suddenly goes to $2000+, mining isn't going to be worth the $$$ anymore..

Topic: Why do Difficulty increases feel like being ass raped?? (Read 2916 times)