Re: Cloudhashing ASIC mining contracts, UK LTD company - Now Mining & Paying Bitcoin
What? No!
You do not seem to understand that whatever hashrate you may be using is ALWAYS competing with the TOTAL hashrate on the whole network.
You against all other hashrates, including others on cloudhashing.
Blocks are found at an overall constant rate.
Since the ammount you got from your contract at cloudhashing stays the same while the rest of the world is increasing at a high speed, the portion you get will become smaller. To earn the same you would need more hashrate to compensate for the fact that others have more hashrate too.
You should read more about the mining reward system in bitcoin.
In terms of amount per month, you're right. I'm talking about amount per block. Cloudhashing's pool discovers a whole block at once, and splits the value of that block among their customers. You do not seem to understand that whatever hashrate you may be using is ALWAYS competing with the TOTAL hashrate on the whole network.
You against all other hashrates, including others on cloudhashing.
Blocks are found at an overall constant rate.
Since the ammount you got from your contract at cloudhashing stays the same while the rest of the world is increasing at a high speed, the portion you get will become smaller. To earn the same you would need more hashrate to compensate for the fact that others have more hashrate too.
You should read more about the mining reward system in bitcoin.
But because there is now more hashrate outside of cloudhashing, cloudhashing will find a block less often...
You are still hashing with the same hashrate as before but the total hashrate increased and thus difficulty (for everyone, including you) also increased. It is now more difficult to hash a good hash and therefore, on average, you earn less. As long as the bitcoin hashrate is increasing you will earn less with the same hashrate.
Block finding in general stays constant on the bitcoin network, no matter the total hashrate. Everyone just gets paid for their relative contribution.
How much cloudhashing finds is irrelevant, they pass the chance on to you by giving you a certain hashrate. This hashrate ONLY relates to the total hashrate. So if the total bitcoin hashrate doubles you will get (almost) half of what you got before because you chance of finding something halfs.
If you were the only customer at cloudhash you would still earn the same as you do now and it would become less just as it did now.
Even if cloudhashing would increase their hashrate (so increase their chance of finding a block) you will still continue losing because your hashrate is still the same and you would compete against more hashrate.
To compensate this effect they invented the rrp plan. They just don't deliver on it and that's why you earn less and less.
Putting 100% of your earnings into rrp is very very dumb because you have no idea when they will add your extra hashrate. By the time they put it online the hashrate might be almost worthless and you wont make any bitcoin.
Best thing is to pay out everything as soon as possible.