Hi
Ethereum mining is taking a hit coz of the difficulty level going high rapidly... In just one month it has almost doubled. If it goes at this rate, is the mining of Ethereum profitable ? Where one rig was generating 4 coins, its now generating 3 or less. Is the difficulty level of the algorithm dependent on the price/value of Ethereum OR is it that more and more people are now jumping into mining Ethereum ?
https://www.coinwarz.com/difficulty-charts/ethereum-difficulty-chart
Comments
So difficulty isn't connected to anything directly, it's just an indicator of decreasing probability. It could start at 1 and go backwards a la a percentage to an infinite .00000 chance.
at times after the initial diff bomb eth wasnt profitable at all
trying to speculate price vs difficulty vs interest is like trying to figure out how much money u would need to spend to win the lottery guaranteed
any answer u get to this will never be right until it happens
if u bought $6k worth of GPUs last year in march and mined till now vs buying eth and holding till now its no comparison
u would have made $100000s more buying eth vs gpu but thats only true cuz it already happened
when litecoin took off if u woulda bought $6k worth of ltc vs GPU
u woulda lost 70-80% of ur investment where as ppl who bought mining rigs retained 80% of their investment
there are investors in LTC who are still waiting to pull out cuz they bought way above where it is and it has never returned
ur asking for trading advice on a mining forum as well btw
so idk speculate if ur a gambler im more of a sure thing type person, calculated risks only
i dont mean to discourage something that could change someones life for the better tho
i feel kinda sick when i think about how many eth i sold way below $100
or in the beginning when it was a toss up between that and quark
regards