Re: Gigantic difficulty jump of the last few days (speculation)
i don't know why people are worried about diff increase all the time, the ratio between the profit and the diff will always be the same, so if many will join and it will be not-profitable, other will simply leave
it's not like everyone out there has free electricity, that would be scary, because they will dump until btc is zero in value, but even then there is the halving...
it's not like everyone out there has free electricity, that would be scary, because they will dump until btc is zero in value, but even then there is the halving...
are you implying that difficulty and price have forever been synchronized even if not in immediate fashion, ergo increasing difficulty will yield increasing price?
secondly, and possibly a crude iteration of what you said, I think that mining will essentially cease at the halving because only those with 16 or whatever nm architecture will even attempt to survive and technology won't meet demand for 4 or 8nm...at least nowhere near the halving time.
As it largely now is, two or three companies will control everything after the halving and even they will be forced to 'pan' for their pay. If correct, will the diff after halving maintain the synchronization with price that I interpret you've suggested?
I disagree. Quite a bit.... you can never remove the person that has cheap or close to zero cost power.
What you can do is lower his hash to network hash percentage but if he has really cheap power you can not beat him.
My friend leases a floor in a building and he then sublets he keeps 20% of the floor and pays 20% of the power bill. Normal rates are 10cents but he is paying 20% of that or 2 cents. he can give me 2 s-7's
So I will mine s-7's for years there. A second benefit is his place is cold in the winter as he does not control heat he used to use 2 1500 watt heaters for 5 months a year. he won't be using them.
So basically he has perfect mining setup for 2 s-7's no one can beat him he is cheaper then free power as 5 months a year he is gettng better then free power and the other 7 months he gets 2 cent power.
Granted he is limited but he is not the only person with these conditions.
You will have small mining as they are the only miners that can have 'free' power setups.
How many of these are sold every year?
Sooner or later this will come about that a company like Delonghi will cut a deal with a company link bitfury
