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Board Service Announcements (Altcoins)
Re: Genesis-mining.com || World's leading hosted Scrypt hashpower provider!
by
Wintermute
on 20/08/2014, 21:59:00 UTC
How can you say hat the maximum difficulty is reached ?

Economic considerations (equilibrium):

Let's take the following example:

A Zeus X6 (20 MH/s) costs + 1 year electricity costs about 940$ (if you are lucky, assuming 0.1 USD per kW/h); in fact most people will pay significantly more for it (VAT, transportation, higher electricity costs etc. will probably mean that most people will effectively pay about >1200$),

In 2014 approximately 5.256 million LTC will be mined, assuming 5.4 USD per LTC, that means 28.3 mn USD.

To cover your cost of 940$ your miner should make a share of 0.003312% of the total pie (otherwise you will mine at a loss)
If this is the case the total hashrate should never be higher than 600 GH/s = 20 MH/s / 0.003312%.

Now take into account that large buyers, manufactuers etc. will get a discount and do not pay 940$ for the package, but rather 700$, then you arrive at an equilibrium level of 810 GH/s.

In other words, no one with a sane mind will invest in a X6 for these prices given the difficulty / LTC price. Thus it is rather unlikely that the hashrate will grow much higher than 800-900 GH/s unless new hardware is available or the LTC price increases again.


https://bitcoinwisdom.com/litecoin/difficulty