Ethereum difficulty level going high rapidly...

Gurpreet1806Gurpreet1806 Member Posts: 24
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

  • FurryBuxyFurryBuxy Member Posts: 42
    Short answer is both. higher price->more profit->more people mining->higher difficulty
  • lugobitlugobit Member Posts: 16
    yes, but when you generating 4 coins the price was $250 and now is $340 for 1 coin
  • Liquid71Liquid71 Member Posts: 25
    Invest in Giga Watt ICO and you'll be mining 3.3c kwh so you'll be more efficient than other miners, then when ETH goes POS you can rent tokens to Bitcoin miners, lowest rental rate is 36% return on token costs so you'll generate income from tokens long after mining ends for ETH. Giga Watt ETH token ICO link
  • autonomyautonomy Member Posts: 3
    Yeah, it's because everyone and their grandmother are building mining rigs. I've seen instructions pop up on several mainstream sites. There's a reason RX 570/580s and 1000W+ PSUs are sold out everywhere... everyone wants in.
  • ben8jamben8jam Member Posts: 37
    Difficulity isn't actually a "thing" right? Isn't it just a number that is linked to probability of lessening numbers of shares to be found? Where it used to be pick 10 numbers between one and 10, now it's pick 5 numbers between 1 and 10.

    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.
  • Gurpreet1806Gurpreet1806 Member Posts: 24
    I got that. Now the question ... Is mining profitable or trading ? Mining shall take 4-5 months just to recover the investment. And after 4-5 months, difficulty level would be 3 times now. While in trading, in 4-5 months we can easily double. Right ?
  • cidmocidmo Member Posts: 446 ✭✭✭
    yea idk when i started mining eth id find 3-4 blocks a day with just a 290x
    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
  • KALIKALI Member Posts: 41

    Hi
    Ethereum mining is taking a hit coz of the difficulty level going high rapidly... In just one month it has almost doubled.

    The ETH price has more than doubled though
  • wcryanwcryan Member Posts: 157
    as long as my crypto calculator is $200+ a month with my current rigs ill be mining
  • Gurpreet1806Gurpreet1806 Member Posts: 24
    KALI said:

    Hi
    Ethereum mining is taking a hit coz of the difficulty level going high rapidly... In just one month it has almost doubled.

    The ETH price has more than doubled though
    Right ! So, should we go for trading OR mining ?
  • cidmocidmo Member Posts: 446 ✭✭✭
    edited June 2017
    like i said no one can tell u the right answer
    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
  • Gurpreet1806Gurpreet1806 Member Posts: 24
    cidmo said:

    like i said no one can tell u the right answer
    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

    I got ya ! Actually I was constantly observing Poloneix exchange, and man its so volatile I must say. Ethereum crossed 400 $ and within half an hour it came down to 340 $. I got kinda tempted with that sudden surge and thought of investing in trading. I am new to mining and am planning to buy my second rig so was double minded. But so fast surge and equally fast downfall helped me to decide one thing : I will stick to mining. Thanks :)
  • MertGMertG Member Posts: 8
    it seems like trader made a good profit today
  • cidmocidmo Member Posts: 446 ✭✭✭
    yea its going nutz with btc bouncing around
    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
  • cprietocprieto Member Posts: 14
    noob question. if the difficul goes higher and higher. rigs with 480/580 wont do the same profit as now?

    regards
  • gustavopaolinigustavopaolini Member Posts: 2
    I've been mining for a few months now, and it's still profitable IF you held on to most of your coins.. I reckon it's not gonna be profitable much longer if difficulty keeps going up like it has, it will become, I don't wanna say "unprofitable" more like it's gonna be more profitable to mine something else.. anybody thinking the same? I'm thinking XMR or ETC.. what d'yall think?
  • Dr_House86Dr_House86 Member Posts: 566 ✭✭✭
    I look at my ethermine app and see alot of profit....even if the diff doubles again i make nice "free" money.
  • gustavopaolinigustavopaolini Member Posts: 2

    I look at my ethermine app and see alot of profit....even if the diff doubles again i make nice "free" money.

    exactly, but that's because, surely, you held on to your coins, but IF you're starting to mine today.. it's a different story.. seems to me at least
  • mikeb99mikeb99 Member Posts: 11
    I started last month with 5 x 480s making estimated 3.2ETH/month down to actual of 2.6ETH/month today. Held on to my coins so thats $1040USD/month? Pretty profitable even with the hike in difficulty - as long as the price keeps going up!
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