Ethereum Difficulty Historical Chart
btc eth bch ltc dash btg xmr etc zec doge vtc ppc ftc nmc rdd blk aur nvc qrk mec bat btg bcc emc2 sc dgb nav sys pot vrc via kore wc dope cloak xwc icn unb ptc grc bela xst slr enrg efl trust btcd net rby uno btcs air sxc moon trc mint pxc bost grn hbn wdc cat super zet qtl utc plc xpy bits top cc nyan arg fire uro con hal Continue reading >>
Is Ethereum Mining Profitable And Worth It In 2017?
Is Ethereum Mining Profitable and Worth it in 2017? As the price of Ethereum hovers around $300, you may be wondering to yourself whether or not its worthwhile to begin mining. Like Bitcoin, Ethereum is a proof-of-work coin that uses miners to confirm network transactions. The profitability of mining varies from person to person and changes over time usually becoming less profitable as the coin matures. There are three important factors to consider when figuring out if Ethereum mining will be profitable for you: Putting it simply, your mining rig needs to solve a mathematical algorithm to mine Ethereum. The mining difficulty of the network is a measurement of how difficult this algorithm is to solve. The higher the difficulty, the less Ethereum you receive for each unit of energy the GPU on your mining rig expends. As more miners join the network, this difficulty increases. The Ethereum mining difficulty had been steadily increasing since July but recently dropped from a high of ~3,000T to ~1,500T. This dip was caused by the Byzantine fork but isnt as advantageous as it seems. Even though the difficulty decreased, the block reward also decreased from 5 ETH to 3 ETH effectively canceling out any benefit from the difficulty change. You can view the past and current difficulty on the Ethereum network at CoinWarz . The hash rate is the speed in which your mining rig can solve the mathematical algorithm needed to validate a transaction. New miners are constantly entering the market with better and faster hash rates. Theres more to buying a miner than just picking the one with the highest hash rate, though. Miners with a high hash rate usually come with a high price tag. On top of that, they also typically use more electricity as they operate which could further drive your c Continue reading >>
Ethereum Is Entering The Ice Age
The difficulty-bomb is starting to expand. Miners need more and more time to find new blocks. This process shall help to improve Ethereum by switching to Proof of Stake ! The difficulty bomb isn't really noticable yet. Since the beginning of this year the price of ETH increased dramatically. Naturally Ethereum's hashrate and thus it's mining difficulty are following this growth. But if you look into the historical charts you can see that difficulty and hashrate are slowly starting to drift apart. Naturally they should be delayed synchronized (more hashrate -> increasing difficulty) But in this case the Difficulty is running away and starts with it's programmed increase. It is normal and important for the Difficulty of the cryptographic task for the miners to increase with the hashrate. This can guarantee a specified blocktime even if the involved computing power is increasing. This is used to fix parameters like coin inflation, transaction speed, etc. But Ethereum is loosing it's balance of diffifulty and hashrate. The Difficulty is increasing faster than the Hashrate. Previously the Ethereum Blockchain handled a Blocktime of 14 seconds. Now it already takes 15 seconds to generate new blocks. This doesn't seem to be that much, but this should be understand as a significant indication ! Simultaneously the number of new created Ether is starting to decrease. In January and February Miners produced around 30.000 new ETH per day. Today there are only ~ 27.000 new ETH created. So far the effects of the difficulty bomb are harmless. They are noticable while looking into the numbers, but tey aren't effecting But the effects will dramatically increase within this year. The Difficulty Bomb is growing exponential ! It is expected for the blocktime to reach 30 seconds per block t Continue reading >>
7 Answers - Why Is Ethereum's Difficulty Rising When Ethereum Is Down 50%? - Quora
Why is Ethereum's difficulty rising when Ethereum is down 50%? Over $20,000 in your IRA or 401k? Here's how to move to Bitcoin. Open a Bitcoin IRA now for massive growth potential on a tax-deferred basis. Get a free info guide now. The difficulty has no direct correlation with price. So, in this case, it means that even with the price down, at least the same amount of hashing power is in play to sustain the Ethereum Network. Why? We can only guess, but at least these miners see good reasons to continue to mine. The next month, the ETH value drops by 50% You can re sell all your rig for say $7000. You lose $3000. Or you can still mine and earn some ETH that might be worth much more in the future. Trading has a short term horizon. Mining has a long term horizon. You cannot buy and sell a rig as fast as buying and selling a bitcoin. Learn blockchain. Earn up to an average of $63,566 per year. Master the concepts like cryptography & cryptocurrency, blockchain networks, bitcoin mining & security. There's no correlation between the hash rate and the price. The hash rate is a function of total computational power on the network. New computers get added and older dogs get upgraded so it makes sense that the hash rate will continually increase over time. The price of ether is a function of trading volume and ultimately the supply and demand. It acts similarly to a traditional stock market in this sense with some interesting differences. If the price continues to call it means there is greater selling pressure than those looking to buy it. In the examples below about the price of the rig and the incentive to hold it lies the basic incentive for miners. While the price of ether is high enough, where you might break even, there is the potential to make a profit of the price increa Continue reading >>
Ethereum Difficulty, What Is Happening - Ethermining
It's the windows update from last night. It took 30% off my claymore hashrate. Just dont say it, keep it quiet for the mining dudes who follow this things and make profit of it. Wait, can I trade my reddit Karma for ether!? Shh! Don't bring these things to light, quiet and mine... Alt coins are recovering in price making it more profitable to mine than ETH Chinese New Years taking a break from mining. Correlation doesn't equal causation, but god damn I cannot agree with this more. The company I work for relies heavily in certain areas of Chinese manufacturing and we are SOL for this week and next. That's just one farm having a temporary shutdown or power failure or something. That drop is equal to about 500 rigs. Not a big deal. has to be more than 500 rigs. my back-of-the-envelope math shows that there would only be 12-13,000 rigs for 500 to create a 4% drop like that. There is more than 13,000 rigs mining ETH. Considering these guys have 16,000 rigs to themselves, I'd say you're right. This drop is significantly more than 500 rigs. 4% of 236,293 GH/s is about 9,451,720 MH/s. Or somewhere around 315,000 rx580s. Definitely more than 500 rigs. Who/how does the difficulty get set? Last weekend ETH difficulty went up 5% in one day. Could that have been too high of an increase and this is a correction today? I guess difficulty is a function of the hash rate and time between mined blocks. Where D = difficulty, H = network hash rate, and T = time between blocks: It would make sense that it scales linearly. So, a 5% increase in hash rate might result in a 5% increase in difficulty. And vice-versa should the hash rate go down. That being said, I'm not sure it would take days before the difficulty corrected itself. As I understand it, the difficulty is pretty fluid and changes Continue reading >>
The Real Cost Of Mining Ethereum
Image Credit: Vitaliy Karimov/Shutterstock Just how profitable is it to mine Ethereum? To properly answer this question, lets start at the beginning: Lets construct a hypothetical mining rig, plug in some reasonable numbers, and come up with a pragmatic analysis of how much you can earn through Ethereum mining. Lets also hold the price of Ethereum static. By removing any profitability from the appreciation of Ethereum from the equation, well be able to correlate the actual rates of return exclusively with hardware, electricity, and any other costs associated with running a mining rig. Our assumption set uses numbers from January of 2018 that you can see below (we have done our best to use reasonable and middle-ground numbers): As you can see here, our hypothetical mining rig is more efficient and profitable than some of the best mining equipment on the market right now. We are assuming four GPUs that mine 40 MH/s each. The hardware specs are four GPUs, plus a processor, a motherboard, and a power supply rated at 1,000 Watts of electricity. The cost of this rig would be approximately $3,000. A reasonable cost of power is approximately 10 cents per kwh. This is below the national average for retail power rates in the U.S. To run a mining rig you will likely pay at least 10 cents per 1,000 watts run for each hour. This means one full day of mining comes with an electricity cost of $2.40. We will also use the block reward and block difficulty from January of 2018 as our base point. And we assume mining with a single rig is only reasonable when working with a mining pool. Some mining pools take up to 10 percent of your earnings, but some of the best only take 1 percent. For that reason, weve pick a modest 1.5 percent. Taking several points across Etherescans historical char Continue reading >>
Ethereum's Difficulty Bomb: All Smoke, No Fire? - Coindesk
Ethereum's Difficulty Bomb: All Smoke, No Fire? Sometimeinthe future(we can't be certain when), ethereum will likely switch from its proof-of-work consensus algorithm to Casper, a proof-of-stake system its developers are now in the throes of completing. While this may sound like a slight change to those who are unfamiliar, altering this one parameter will have an outsized effect.When the protocol change happens, the ethereum blockchain will hard fork, meaning that, for a short period of time, two networks the old and new will exist simultaneously. At that point, the goal for ethereum will be to persuade the majority of its users to upgrade to thenew proof-of-stake-powered blockchain. Otherwise, ethereum risks winding up creating another blockchain, as it did when a past technical update created ethereum classic . On the surface of things, getting the companies that use the ethereum network to switch should not be a problem. After all, proof of stake promises to be faster and more scalable, and to consume far less energy than proof of work. To most of the ethereum community, Casper sounds like a great deal. Unless, of course, you are a miner. That's because proof of stake doesnt rely on mining. Rather, it gives the job of creating the next block to those who own tokens on a blockchain a move that essentially puts miners out of a job . But, two things could go wrong with ethereum's big switch. One would be if Casper does not work as planned. In this case, ethereum could simply delay the switchover. The second is if miners continue mining the old chain. But ethereum has always had a plan for that something called the 'difficulty bomb'. Baked into ethereum shortly after the network launched, the difficulty bomb was created to make mining a block increasingly difficult over Continue reading >>
Is Ethereum Mining Profitable In 2018?
In this article we will try to figure out the profitability of Ethereum mining As the price of Ethereum isaround $1000 you may be wondering to yourself whether its worthwhile to mine ETH. Like Bitcoin, Ethereum is a proof-of-work coin that uses miners to confirm network transactions. The profitability of mining varies from person to person and changes over time usually becoming less profitable as the coin matures. In this article we will try to figure out the profitability of Ethereum mining. There are three important factors to consider: In a word, your mining rig needs to solve a mathematical algorithm to mine Ethereum. The mining difficulty of the network is a measurement of how difficult this algorithm is to solve. The higher the difficulty, the less Ethereum you receive for each unit of energy the GPU on your mining rig expends. As more miners join the network the difficulty increases. The Ethereum mining difficulty had been steadily increasing since the beginning of December with 1,500TH to ~2,500H. EtherscanEthereum Block Difficulty Growth Chart The daily block rewards of ETH have hardly changed since December and it is currently ~20.339 ETH. The hashrate is the speed in which your mining rig can solve the mathematical algorithm needed to validate a transaction. Miners with a high hashrate usually come with a high price tag, but they also typically use more electricity as they operate which could further drive your costs up. Average hashrate of ethereum network has increased since December from ~125492GH/s to ~203394GH/s, which is the highest rate of all time at the moment. Etherscan Ethereum Network HashRate Growth Rate Each mining rig works at a different level of efficiency and uses a variable amount of electricity. On the low end, miners typically draw ~100 Continue reading >>
How Difficulty Adjustment Algorithm Works In Ethereum
How Difficulty Adjustment Algorithm Works in Ethereum In order to explain the logic of difficulty adjustment, we will use the go implementation of Ethereum which is generally called Geth. Source code of Geth can be found here. Difficulty adjustment algorithm is coded inin block_validator.go file, which can be found here. By difficulty adjustment we mean the logic in Ethereum using which Ethereum tries to keep mining time of the blocks between 10 to 19 sec. If difference in mining time is between 0 to 9 sec. then Geth tries to increase the difficulty to mine the block and if difference is 20 sec. or more, then Geth tries to reduce the mining difficulty of the system. In block_validator.go file, function CalcDifficulty is called to adjust the difficulty of the system and it returns the difficulty of the next block when it will be created. This function, in return, calls calcDifficultyHomestead or calcDifficultyFrontier depending on the configuration parameters. Latest version of Ethereum uses calcDifficultyHomestead function, therefore we will be reviewing calcDifficultyHomestead function. In order to calculate the difficulty of the new block, this function needs following input parameters: time Proposed time of formation of new block parentTime Time of formation of parent Block parentNumber Parent block, block number. Below is step by step process how difficulty of new block gets created. 1. First, difference between time of formation of parent block and new block is calculated. 2. Output of step 1 is then divided by 10 and integer of it is stored. This is done to create ranges. If output of step 1 is between 1 9 then output of this step will be 0. If output of step 1 is between 10 19 then output of this step will be 1. If output of step 1 is between 20 29 then output o Continue reading >>
Ethereum Mining Difficulty Exploded Over The Past Three Months
Ethereum Mining Difficulty Exploded Over the Past Three Months Ethereum Mining Difficulty Exploded Over the Past Three Months The Ethereum mining difficulty has increasedby leaps and bounds over the past few months. With more and more people looking to mine cryptocurrency and Ether specifically it is normal to see this trend emerging. Unfortunately, this does not bode well for Ethereum miners, as it will require more powerful hardware to mine every time the difficulty increases. Ethereum Mining Difficulty Reaches All-Time High The downside to any proof-of-work-based cryptocurrency system is how the mining difficulty affects the entire network. Miners provide an important service to any cryptocurrency requiring hashpower to maintain its stability. More people mining on the network means the entire ecosystem is protected better. In exchange for their hashpower, miners receive an incentive known as the block reward . This is the same for any currency which still supports mining at its current stage. For Ethereum users, mining the cryptocurrency seemed pretty appealing just a few weeks ago. When the Ether price briefly hit US$400, a lot of people made the conscious decision to effectively invest in ETH mining equipment. For most people, this meant buying up a lot of graphics cards , as there are no ASIC miners for Ethereum nor will there ever be any, especially when keeping the difficulty bomb in mind. For those unaware, Ethereum will switch to proof-of-stake at some point in the future. It is impossible to deny thatthe Ethereum mining difficulty has evolved over these past few months. In January of 2017, the difficulty was just below 100 TH/second, according to Etherscan, and had been rising gradually since January of 2016. However, things really started to pick up speed Continue reading >>
What Is The Ethereum Ice Age?
Ethereum is currently a Proof of Work cryptocurrency, meaning that computational power is needed, not only to produce new coinsbut to process transactions and to keep the entire ecosystem moving. In order to ensure the system is scalable and decentralized, Ethereum plans to move to a Proof of Stake protocol where a lot lesscomputational power is required and miners can earn rewards according to their balance. The Ethereum Foundation is still working on the Proof of Stake protocol, Casper. Since Casper is not finished and it's not contained in the release version of Ethereum a hard-fork might be required to implement this change. An hard-fork creates an incompatibility between the previous version and the latest, there is always the possibility to create a "split" that result in two blockchains, like Ethereum Classic , did on the 1920000th block, after the hard-fork to refund The DAO token holders took place . In order to ensure such event doesn't take place (although it did already) and to give themselves a time-frame to finish Casper (making the community aware of the introduction of a hard fork within that time-frame), a Difficulty Time Bomb, is also known as Ice Age was implemented in Ethereum. The Ethereum Ice Age is a difficulty adjustment scheme that was put in place to ensure that everyone has an incentive to move to the new blockchain once the hard-fork is implemented. It was introduced on the 7th of September (2015-09-07), about 11 months ago and it's programmed to raise difficulty exponentially. It's impossible for miners to keep up with the increase of difficulty which would raise block time and it would make the blockchain freeze, hencethe name Ice Age. The key part is the calculation for the increase in difficulty is Math.pow(2,Math.floor(block.number / 10 Continue reading >>
Profits Are Drying Up For Ethereum Miners
Profits Are Drying Up For Ethereum Miners Updated, 03/19/2018, 11:30am PT: Orriginal article incorrectly attributed NAND price as a factor for GPU pricing. As the price of Ethereum continued to drop week over week, the mining difficulty continued to rise. At this pace, mining profits are quickly thinning out. Last year, the price of Ethereum took off like a rocket and headed for the moon. At the beginning of the year, Ether coins traded for less than $10, and by the end of December, people were willing to shell out close to $1,000 per coin. The stratospheric rise in value also attracted a massive influx of cryptocurrency miners hoping to make a quick buck. Last summer, we conducted an Ethereum mining experiment that involved the creation of a profitable mining rig out of older parts that had piled up and started collecting dust. In that article, we explored the possibility of earning profits from an inefficient mining system. We looked at the mining difficulty rating and how it would affect our income. We also touched on how much the cost of electricity would limit our profits. At the time of our experiment, our mining rig proved to be profitable in most cities, but if the price of Ether dipped by 25%, you would be losing money in markets with expensive electricity. (Something miners capitalized on by setting up shop in cities with cheap power like Plattsburgh, New York. ) For most of 2017, Ethereum miners were doing well, but 2018 hasn't been quite as lucrative. The coin traded for around $200 when we started our Ethereum mining experiment in July 2017, and throughout the fall, its value slowly crept up past the $300 and $400 marks. By mid-December the cryptocurrency craze was in full swing, and Ethereum's value reached $800. Then, in the first week of January 2018, i Continue reading >>
When Is Next Major Ethereum Difficulty Spike?
When is next major Ethereum difficulty spike? That's what I thought too. Anyone else heard the same or something different? That's what I thought too. Anyone else heard the same or something different? Spike will happen only if eth suddenly doubles or triples its price overnight, plus people are very careful about adding more gpu's cause mining could die anytime. Well to serve your case, last time i checked, difficulty was 1.5, now is 1.85, which means 20% in few days. BTC Address: 1DH4ok85VdFAe47fSVXNVctxkFhUv4ujbR Not sure about this but wasn't the Ethereum "ice age" just postponed because of the metropolis-byzantium update? Meaning it's not removed but still built into the code but designed to activate at a later date (later block height)? Was wondering about the same as i'm also considering adding more mining rigs. 1 year is enough for ROI and some profit anyway right? Not sure about this but wasn't the Ethereum "ice age" just postponed because of the metropolis-byzantium update? Meaning it's not removed but still built into the code but designed to activate at a later date (later block height)? BTC Address: 1DH4ok85VdFAe47fSVXNVctxkFhUv4ujbR Not sure about this but wasn't the Ethereum "ice age" just postponed because of the metropolis-byzantium update? Meaning it's not removed but still built into the code but designed to activate at a later date (later block height)? the combined carbon footprint of all the Ethereum miners has staved off the ice age That's what I thought too. Anyone else heard the same or something different? Spike will happen only if eth suddenly doubles or triples its price overnight, plus people are very careful about adding more gpu's cause mining could die anytime. Well to serve your case, last time i checked, difficulty was 1.5, now is 1.85 Continue reading >>
How Is The Mining Difficulty Calculated On Ethereum?
Having read various pieces of documentation, it's still not completely clear to me what dictates the difficulty rise, and how Ethereum difficulty levels differ to Bitcoin. In the past week difficulty has jumped from around 11 to over 17, whilst GH/s has fluctuated between 800.00 - 1400.00 but with no clear correlation between the two. Has the "difficulty bomb" now been introduced? And if yes, is there any way for approximating or calculating how much difficulty will likely rise by in the next 6-12 months? Related: If Serenity / PoS is unlikely to be introduced until early next year, has there been any suggestion from the dev team that the effects of this "difficulty bomb" will be reduced in either the homestead or metropolis releases? From : Mining difficulty is calculated from the time difference between blocks. The exact formula will change in Homestead. The symbol // in the following denotes integer division. block_diff = parent_diff + parent_diff // 2048 * (1 if block_timestamp - parent_timestamp < 13 else -1) + int(2**((block.number // 100000) - 2)) block_diff = parent_diff + parent_diff // 2048 * max(1 - (block_timestamp - parent_timestamp) // 10, -99) + int(2**((block.number // 100000) - 2)) The problem with the frontier formula and the reason for the change was that the frontier version doesn't take into account how far off from 13 seconds the block time was. A block mined 1 second after the previous one has the same effect on the difficulty as one mined after 12 seconds. This causes block difficulty to adjust to a median block time rather than a mean. Again, check out the EIP for more details. Apologies that I lack the the knowledge but how exactly would I use this to calculate? Seeing the difference "< 13 else -1" vs "// 10, -99" it's not clear to me what the Continue reading >>
It Is No Longer Worth It To Build An Ethereum Mining Rig
It Is No Longer Worth It To Build An Ethereum Mining Rig Building an Ethereum mining rig hasnt been worth it for months, and soon they will be completely obsolete. Goodnight, sweet prince. Image: Daniel Oberhaus/Motherboard Back in May I wrote a guide explaining how to build an Ethereum mining rig , a special type of computer that forms the backbone of the Ethereum network and earns ether, the digital currency native to the network, for its owner. Shortly thereafter, Motherboard also made a video documenting this process . Since then, Ive received countless emails from readers inquiring about my mining rig. Ive received three such emails this week. The most common question voiced by these readers is whether or not it is still worth it to build a mining rig. The answer to this question is no. Building an Ethereum mining rig hasnt been worth it for months and a few months from now, mining ether will be completely obsolete. Read More: An Idiot's Guide to Building an Ethereum Mining Rig Arguably, building an Ethereum mining rig wasnt even worth it when I built my machine in May, and many readers let me know this when the article and video first came out. This is somewhat true, but there is a necessary caveat here. Mining ether also wasnt worth it for about the first year and a half of the cryptocurrencys existence. The price of ether hovered around $10 from 2015 until early 2017, when it saw a spike to $25. This was important because it meant the value of the ether being mined was higher than the cost of the electricity that was needed to mine it. In other words, until that point small scale mines were operating at a loss in the belief that the tokens they were mining would someday be worth a lot more money. In hindsight, these early miners were rightthe price of ether has Continue reading >>