Network hashrate doubled in the past 2 months

banzsolt · October 2016

Did you guys noticed that the network hashrate mostly doubled since the beginning of August?
https://etherscan.io/charts/hashrate

How is that the price of ETH is not reflecting this? We are making less ETH with the same rigs that we had in august for mostly the same income.

adaseb · October 2016

The price of ETH has nothing to do with the hashrate since the supply is constant.

Seems like you didn't do your homework when it came to mining and should of learnt about difficulty and what it means.

banzsolt · October 2016

@adaseb I understand that the supply is constant, but why are miners willing to sell them at the same price if they are actually getting less ETH now? I mean I always tend to ask for a price that is over the market price, since I am getting less and less ETH.

Do you have a recommendation of an article that explains this?

adaseb · October 2016

banzsolt said:
@adaseb I understand that the supply is constant, but why are miners willing to sell them at the same price if they are actually getting less ETH now? I mean I always tend to ask for a price that is over the market price, since I am getting less and less ETH.

Do you have a recommendation of an article that explains this?

Some miners are keeping ETH and betting that it goes up in the future.

Most however sell at whatever the current market price is so they can pay their electricity bill and GPUs.

You can sell at any price you want, however there is no guarantee that your offer will be filled, especially if the market goes even further down.

That's why mining can become unprofitability VERY FAST when the difficulty doubles and price halves leading to quarter profits from before.

Karza · October 2016

lol, if you ask for more than market price you won't sell anything.

Xereo · October 2016

banzsolt said:
@adaseb I understand that the supply is constant, but why are miners willing to sell them at the same price if they are actually getting less ETH now? I mean I always tend to ask for a price that is over the market price, since I am getting less and less ETH.

Do you have a recommendation of an article that explains this?

There is currently enough ETH to supply the current demand. Once demand does not meet the supply the price will increase. The current difficulty even though it has doubled isnt enough to cause a shortage of ETH as people including myself are just adding to our mining rigs to keep Eth income stable.

banzsolt · October 2016

@Karza my prices usually are 0.2% higher than the market price, and usually in 4-5 hours after I put my offer the market value goes up to that price.

Rabasso · October 2016

Xereo said:

banzsolt said:
@adaseb I understand that the supply is constant, but why are miners willing to sell them at the same price if they are actually getting less ETH now? I mean I always tend to ask for a price that is over the market price, since I am getting less and less ETH.

Do you have a recommendation of an article that explains this?
There is currently enough ETH to supply the current demand. Once demand does not meet the supply the price will increase. The current difficulty even though it has doubled isnt enough to cause a shortage of ETH as people including myself are just adding to our mining rigs to keep Eth income stable.

there is a point on which adding more won't give you the income you need to keep your income flat, on the contrary it will decrease it because everyone is thinking in the same lines, and difficulty keeps climbing to keep block timing contant, decreasing your income, to the point on which you will not even afford the electricity used to run the rigs.

banzsolt · October 2016

Rabasso said:

Xereo said:

banzsolt said:
@adaseb I understand that the supply is constant, but why are miners willing to sell them at the same price if they are actually getting less ETH now? I mean I always tend to ask for a price that is over the market price, since I am getting less and less ETH.

Do you have a recommendation of an article that explains this?
There is currently enough ETH to supply the current demand. Once demand does not meet the supply the price will increase. The current difficulty even though it has doubled isnt enough to cause a shortage of ETH as people including myself are just adding to our mining rigs to keep Eth income stable.
there is a point on which adding more won't give you the income you need to keep your income flat, on the contrary it will decrease it because everyone is thinking in the same lines, and difficulty keeps climbing to keep block timing contant, decreasing your income, to the point on which you will not even afford the electricity used to run the rigs.

@Rabasso good point.

This is how I noticed this "case" ... I just ordered some new parts for some new rigs when I saw realised that I am actually mining more or less the same amount of ETH that I was doing before, with fewer rigs, even though I was keeping adding more and more rigs to my farm.

Hmmm... If we all decide not to sell our ETH (or at least at not this price) that will increase the market demand and it's value, doesn't it? :P

adaseb · October 2016

Most of the ETH in circulation is not in the hands of miners. Keep in mind the ICO.

trump104 · October 2016

it sucks for small miners like me. I just joined too late or at least i wont expand anymore thats for sure.

4 months ago 1 Mhs was giving you 0,242 ETH per month.
Today 1 mhs give you 0,11 ETH per month.

It sucks. I hope zcash or some new coin brings some fun back into the game. Obviously i'm still doing proffit with my 200mhs but it has halved in the past 2 month.

Biodom · October 2016

only one more doubling of the network hashing speed with the same price and it is pretty much over, so I pencil in the end of my eth mining by Jan 1 or thereabout. If price goes up, then I might continue for a bit longer.

VEGA is irrelevant, unless it costs $300 and cooks 60mh at 140w. Mining would be viable for 2-3 extra mo then.

Biodom · October 2016

adaseb said:
Most of the ETH in circulation is not in the hands of miners. Keep in mind the ICO.

Down with ico's, cash (eth, btc) or nothing. I had enough "fun" with theDAO. ICO's is an insiders game, which I am NOT playing.

adaseb · October 2016

Same here 2-3 more months and then its back to the Antminer world.

Will get a bunch of cheap S7 and undervolt those suckers. 1TH=200W

banzsolt · October 2016

I am wondering if I should stop mining ETH too. At the current difficulty and price my break even is at ~12 month.

By the way this might seam a noob question, but according to my logic since the mining is not that profitable, the miners who are only here for the profit will stop mining which will make the network less secure, isn't that right?

Biodom · October 2016

@adaseb
re undervolting S7-it works, but needs to be done in A/C space. They like to run hot, which is difficult to do if your ambient changes during the day.
@banzsolt
re mining with little profit-it is nothing new to those with btc experience.
mining will just gravitate toward lower electricity cost areas, then, hopefully, POS will happen.

adaseb · October 2016

Not really. To make the network super secure all it would take is only 1% of the current hashpower. Same with Bitcoin. As long as its decentralized and not held by a single person.

How much are you paying for power exactly? 12 months is crazy high.

My ROI is like 4 months on the GPUs.

Karza · October 2016

@banzsolt, well then you've had a good run then. The price can just as easily go down 4-5 hours after you offer your sell price.

My point is you don't dictate the market price, the market dictates your price if you want sell.

Unless of course you are a whale, and even for them when one whale wins another whale often loses as well.

banzsolt · October 2016

I decided to return my last 4 rigs that I built, since they were built only in the past week. Like this I am able to get full refund for them. I will stick only with 2 and see how they do the job.

This is what I am sending back now:

adaseb · October 2016

Yikes! Its that bad?

Where did you buy them? No restocking fees?

Make sure to reflash the stock firmware.

MineRonny · October 2016

adaseb said:
Not really. To make the network super secure all it would take is only 1% of the current hashpower. Same with Bitcoin. As long as its decentralized and not held by a single person.

How much are you paying for power exactly? 12 months is crazy high.

My ROI is like 4 months on the GPUs.

How are you getting 4months on ROI? Are you getting used GPUs?

Zorg33 · October 2016

Net price for the cards and cheap electricity I guess.
Basically you can build the whole rig not including the gfx cards for under 100 bucks if you are smart. That makes ROI much better.
So basically the price of the cards is what matters and the price of electricity.

And if you dont sell eth immediatelly and price goes up, you can have very short ROI shifted in time

I think of mining much like you put yourself in a long position waiting for price to go up.
Just like you are always buying ETH somewhat cheaper through mining than you'd buy it on an exchange.

wonderfullife · October 2016

Do those 100 $ include a 850W PSU?

adaseb · October 2016

The cards cost $260 and they make around $2 a day.
So around 4 months.

Canadian funds.

Everything else I had either from the basement, or from my Bitcoin mining days. The GPUs probably accounted for 95% of all the costs in hardware.

banzsolt · October 2016

adaseb said:
Yikes! Its that bad?

Where did you buy them? No restocking fees?

Make sure to reflash the stock firmware.

Thank's for the note

resetted everything back to original setings

Biodom · October 2016

banzsolt said:
I decided to return my last 4 rigs that I built, since they were built only in the past week. Like this I am able to get full refund for them. I will stick only with 2 and see how they do the job.

This is what I am sending back now:

well, good luck NOT getting a 15% restocking fee on a massive return.
I returned two cards with an obvious defect to newegg-no prob. I tried to return a third one, which was working fine, but fans were making a loudish noise, and they asked for a restocking fee, unless i agree on replacement instead of refund. Maybe, your retailer has better policies, but it is difficult to argue that 24 cards are all defective.

banzsolt · October 2016

I am getting 90% of their value back, so that is 10% loss

vgm · October 2016

Ouch

Howdy, Stranger!

Quick Links

Categories

Network hashrate doubled in the past 2 months

Comments