Enough about the difficulty-issue already... statistics and probability will even everything out as long as you keep on mining!
Lets say you have just one GPU 620khs, and compare solo-mining LTC (HIGH diff) and pool-mining (LOW diff).
If you look at it over the course of one day or even one week, the pool will pay you money and solo-mining will probably result in 0 LTC.
- "Aaaargh! The high diff is causing me to loose money!!! GRrrrr!!"
But in reality, and in practice, that is not the case.
Using 620khs a solo-miner would, statistically, expect to find a block in about 70 days at current diff.
So after 70 days, you would find a block of 50LTC. In the same timeperiod, you would get about 50LTC MINUS poolfees from the pool.
In the long run, the two different strategies end up with the same result despite huge differences in difficulty for the shares.
(Yes, it might take more than 70 days, but then think 700 days.. or 7000..whatever)
IMPORTANT => Unless you understand the above, do not consider reading on, read the above part again <= IMPORTANT
The exact same thing applies to mining in a pool with different difficulties. Diff 512 or 128 does not matter. On average, you will get paid the same. It does not really matter if you submit 10 x "512-shares" or 40 x "128-shares" (conceptually).
The only time it would matter, as i see it, is if a coin is mined just a few minutes, so that a small miner does not even get one share submitted. But then again, it would not be a big deal, statistics dictate that what you lose in one period is made up for in another. So all you loose is the difference between profitability between the two coins mined.
I think h2odysee is doing a great job. Look at this pool as your personal-crypto-broker, you give h2odysee a bucket of hashrate, and he uses it as he sees fit. If you do not like the results, go elsewhere, just as you would with your money and a proper stockbrokerage-firm.
The only thing i would like to see is the possibility of him automatically splitting the hashrate in the pool, say:
10MHs KrugerCoin
15MHs Spots
20MHs Fastcoin
Everything else to Litecoin
etc.
(Either automatic or by choice)
Still letting everyone share the profits during a given period for all coins. That way, we can earn more, as we can sell a smaller volume of high-profitability coins with low market-depth.
I am so tired of seeing -coin as most profitable, just to find out that the marketdepth is about what i can mine in 2 hours, then it is much less profitable than anything. If we can mine many coins at once and sell them to those (unrealisticly high) prices, the *true* value of each alt-coin would appear. That would automatically stabilize the value of all alt-coins to realistic long-term levels.
Just my 5 cents sitting at the breakfast-table!
/Metamine