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Does this mean that profitability of mining will go up? I found a calculator, but don't understand it well enough. Did find a "Bitcoin Mining Difficulty" which

by hgo 5y ago

Does this mean that profitability of mining will go up? I found a calculator, but don't understand it well enough. Did find a "Bitcoin Mining Difficulty" which I assume will change? Value now is: "19,932,791,027,263.00" https://www.coinwarz.com/mining/bitcoin/calculator https://www.coinwarz.com/mining/bitcoin/calculator

cloudhead 5y ago
Yes, for those still mining, this is great!
whoisjohnkid 5y ago
Yes. In 4 days the difficulty will adjust and it will be 20+% easier to mine a coin. As more people start back mining difficulty will adjust again
- Taek 5y ago
  People aren't stopping their mining because the price fell, they are stopping their mining because of regulatory pressure from China. Miners that are still running today just get to rake in the benefits of China pulling out of the game. The profits will last until new datacenters are set up outside of China. It's a slow process to do that, hashrate might not return to its peak value for 6+ months.
  - whoisjohnkid 5y ago
    correct. When I mentioned more folks mining again I meant more folks mining because it’s easier and of course whenever the dislocated Chinese miners get their operations back up again in another location.
mustyoshi 5y ago
Sort of. All things being equal, lower difficulty means more profitable. But the difficulty is updated every 2 weeks (1440 blocks) to try and stay at 10 mins between blocks, so any profitability bump will only last for up to 4 weeks (the first retarget may not be fully enough if the hashrate drop occurs in the middle)
- Taek 5y ago
  I think you've got that backwards. Profitability doesn't go up until the difficulty adjusts. Once the difficulty adjusts, it's cheaper to mine each Bitcoin and everyone who still has a rig running will make more money. The increased profits will continue until everyone who was displaced from China can find a new home, but this isn't going to be a quick process, Bitcoin requires enough datacenter space that all the Bitcoin-ready datacenters outside of China are already full!
noxer 5y ago
In theory yes but it takes while before difficulty adjusts and since the price also doped it likely doesn't matter much. Its more of a problem security wise. There is now guaranteed hardware out there that can produce more than 50% of the hash power but its currently not "working" for bitcoin. This in theory could mean someone is secretly mining a longer chain which could later be made public and "reverse" the other chain. This is very very unlikely to be the case because the "missing hashpower" is likely being moved to other locations and that is the reason why it is not running.
PragmaticPulp 5y ago
The profitable mining equipment isn’t being scrapped. It’s being packed up and moved. Miners have no interest in simply giving up on profitable mining gear.

by hgo 5y ago

cloudhead 5y ago

Yes, for those still mining, this is great!

whoisjohnkid 5y ago

Yes. In 4 days the difficulty will adjust and it will be 20+% easier to mine a coin. As more people start back mining difficulty will adjust again

Taek 5y ago
People aren't stopping their mining because the price fell, they are stopping their mining because of regulatory pressure from China. Miners that are still running today just get to rake in the benefits of China pulling out of the game. The profits will last until new datacenters are set up outside of China. It's a slow process to do that, hashrate might not return to its peak value for 6+ months.
- whoisjohnkid 5y ago
  correct. When I mentioned more folks mining again I meant more folks mining because it’s easier and of course whenever the dislocated Chinese miners get their operations back up again in another location.

mustyoshi 5y ago

Sort of. All things being equal, lower difficulty means more profitable. But the difficulty is updated every 2 weeks (1440 blocks) to try and stay at 10 mins between blocks, so any profitability bump will only last for up to 4 weeks (the first retarget may not be fully enough if the hashrate drop occurs in the middle)

Taek 5y ago
I think you've got that backwards. Profitability doesn't go up until the difficulty adjusts. Once the difficulty adjusts, it's cheaper to mine each Bitcoin and everyone who still has a rig running will make more money. The increased profits will continue until everyone who was displaced from China can find a new home, but this isn't going to be a quick process, Bitcoin requires enough datacenter space that all the Bitcoin-ready datacenters outside of China are already full!

noxer 5y ago

In theory yes but it takes while before difficulty adjusts and since the price also doped it likely doesn't matter much. Its more of a problem security wise. There is now guaranteed hardware out there that can produce more than 50% of the hash power but its currently not "working" for bitcoin. This in theory could mean someone is secretly mining a longer chain which could later be made public and "reverse" the other chain. This is very very unlikely to be the case because the "missing hashpower" is likely being moved to other locations and that is the reason why it is not running.

PragmaticPulp 5y ago

The profitable mining equipment isn’t being scrapped. It’s being packed up and moved. Miners have no interest in simply giving up on profitable mining gear.