Will Mining fee's keep mining alive?

DeathAndTaxes

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Gerald Davis

Quote from: jhansen858 on May 11, 2013, 06:48:35 PM

I cant say I would be sad if the difficulty suddenly started dropping because everyone else was getting out.

Difficulty has dropped many times in the past. When it drops the remaining miners will be more profitable so they have more of an incentive to stay.

jhansen858

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I cant say I would be sad if the difficulty suddenly started dropping because everyone else was getting out.

glendall

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Next Generation Web3 Casino

Hedging is sort of available through the purchase of shares/stocks in mining operations currently, notably asicminer of course.

anderl

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Quote from: DeathAndTaxes on May 07, 2013, 12:19:19 AM

If difficulty goes to high then marginal miners will be unprofitable ... they quit and difficulty falls.

Difficulty will not fall at first. You assume people are intelligent. I think it will slow and flat line.

A lot of variables to consider
Miners with and without electric bills
Miners that are good and bad at math
Miners that speculate the appreciation of coins

What we need is hedging. Miners need futures contracts so we can offset the difficulty of mining in the hole. If hedging instruments appear then I'm sure mining will continue even as difficulty accelerates.

cdog

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Ah, I see, Im just really curious about give-me-ltc and wemine ltc, as those are my main pools and I know wemineltc is having financial issues covering the transaction fees just from paying their own miners, so Im assuming there is no way they distribute any collected fees.

DeathAndTaxes

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Gerald Davis

Quote from: cdog on May 07, 2013, 03:43:38 PM

In terms of pooled mining, where do the transaction fees go now? Operators keep them or they are part of the shares?

Depends on the pool. Some pools included them in miner rewards, some keep them (an effective ~1% to 2% hidden fee).

cdog

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In terms of pooled mining, where do the transaction fees go now? Operators keep them or they are part of the shares?

Frizz23