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Ethereum Difficulty Drop

Is It Worth It To Start Mining Ethereum? [december 2017]

Is It Worth It To Start Mining Ethereum? [december 2017]

Its been a while since we updated this series this past summer , but our answer for the Is it worth it? question has remained mostly the same. Ethereum saw increasing difficulty throughout the fall and little increase in price, which made mining steadily less and less attractive. But recently, Ethereum has boomed to be priced at around $700-$800, which has led to a resurgence in mining interest. So whats the latest answer to this constantly-repeated question in the mining community? Ethereum is becoming even more profitable now after its first huge jump in price over the summer, which has meant even more to become suddenly interested. Especially since Ethereum is currently one of the most profitable coins to mine, its worth considering how the landscape has changed lately. We recommended for two months straight over the summer that people that want to minimize the risks involved with investing in the cryptocurrency space should consider getting into Ethereum mining, but that it might be a bit late in the game to set up a rig considering the many unknowns in the industry. Those that got in early and have remained steadfast in keeping their rigs online since then have made really decent gains, especially if they had many rigs or GPUs to maximize their profits. So back to the question: Is it worth it to start mining? If youre just now hearing about Ethereum and interested in maybe jumping on board, that can be a hard question, and it depends on a lot of different factors. Do you appreciate this guide? Tips welcome! Ethereum:0x51984c8b295e6ee46d0d0fba0fd5548cff632327 Bitcoin:17nveRFLh833mnFjkyk9zaw9oYFudV8UKF Ethereum difficulty update for December 2017 Difficulty moved up steadily throughout the summer (all the way up to 3,000T in mid-October, at which point mining Ethere 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

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 >>

Ethereum Difficulty Drop

Ethereum Difficulty Drop

I have just noticed a big drop of ETH difficulty. What have caused it? i would to diagree on this one because, first Ethereum price has moonrockted, and second there are lot of different currencies to be mined not just Ethereum like what is happening with the NEW MINER FOR DASH ANTMINER D3. The difficulty was artificially increased 2? times before the latest build in preparation for the future transition to proof of stake. ETH has a massive inflation of 13% per year, so they tried to decrease it with coded difficulty bombs. People complained and the difficulty bombs got coded over in current release. it is too soon! if it were after October 25 i would have said the miners have moved on to mine bitcoin gold with all their GPU rigs and the hashrate drop caused the difficulty drop also. but BTG is not yet released! maybe this is the first step though, since the reward was nearly halved from 5 to 3, miners automatically switch to more profitable ones to mine: ETC, ZEC,... Yup it was because of the Byzantium fork. The dropped rewards earning from 5 to 3 eth for each block now. Right now the earnings seems to had increased by around 20% only. So if difficulty dropped, i havent really looked it up. But the rewards or earnings had increased by around 20ish %. Kinda shtty if you ask me. And price seems to be the same for eth. These damn eth devs, they shouldve just left tbe block rewards as is. Reducing the block rewards seems like no effect on eth price. Quote from: Chan8 on October 20, 2017, 06:12:05 PM Yup it was because of the Byzantium fork. The dropped rewards earning from 5 to 3 eth for each block now. Right now the earnings seems to had increased by around 20% only. So if difficulty dropped, i havent really looked it up. But the rewards or earnings had increased by arou Continue reading >>

What Is The Ethereum Difficulty Bomb?

What Is The Ethereum Difficulty Bomb?

Over the past few months, there has been a lot of speculation regarding Ethereums mining difficulty. This problem is known as the Difficult Bomb, and it poses a significant threat to the ecosystem. Or that is what most people think will happen if things ever come to such a point. Switching to proof-of-stake should make this a non-issue, though. Now is a good time to look at Ethereums difficulty bomb and what it could potentially mean for the network if left unchallenged. The Ethereum Difficulty Bomb Makes Mining Impossible It is important to understand the problem of the Ethereum difficulty bomb first and foremost. When Ethereum was first created, the developers had to create a consensus algorithm. Similar to Bitcoin, this consensus is achieved through mining in a proof-of-work environment. However, with the mining difficult going up over time, it could potentially create a problematic scenario. After all, it does not appear there will be ASIC-like mining hardware for Ethereum anytime soon. However, the Ethereum developers have come up with a different plan. From the outset, the plan was to make Ethereum mining impossible at some point in the future. This change will be introduced through an arbitrarily difficult block to mine, which will effectively create the difficulty bomb in question. As this difficulty bomb is activated on the network, the mining difficulty will skyrocket and eventually make Ethereum mining unfeasible and extremely unprofitable. Some people would expect this to be the end of Ethereum, but there is no reason to panic just yet. The goal is to switch over to a proof-of-stake algorithm before the Ethereum difficulty bomb can even become a problem. Right now, that PoS algorithm is still in development, albeit its completion appears to be imminent. Do Continue reading >>

2017 Was Bitcoin's Year. 2018 Will Be Ethereum's

2017 Was Bitcoin's Year. 2018 Will Be Ethereum's

2017 Was Bitcoin's Year. 2018 Will Be Ethereum's Dec 27, 2017 at 12:45 UTC|UpdatedDec 27, 2017 at 20:58 UTC Jez San is CEO of FunFair Technologies, an ethereum-powered casinoplatform. A vocal supporter and critic of blockchain technologies, San wasalso a pioneer in real-time, 3D games. The following article is an exclusive contribution to CoinDesk's 2017 in Review series. As a long time investor in bitcoin and cryptocurrencies, 2017 has been remarkable. But it's important to remember, this is really just the beginning. Despite the valuations, major protocols remain deficient in delivering value to users. Bitcoin with it'shigh fees and slow transaction times is hardly suitable for payments - spending the same fee whether you buy a coffee or send $100,000 is a joke and thepromise of scaling solutions such as the Lightning Network hasn't been fulfilled. Suffice to say, its new positioning as a store of value is precarious, even if,judging by the huge uptick in bitcoin price, the store of value narrative is winning for now. While there's no shortage of old and new believers to keep the party going, along with plenty of developers working to create better, forked versions of bitcoin, I'm betting my chips on a more flexible alternative. The door is wide open for blockchains that use smart contracts , like ethereum, and I believe their potential market dwarfs that of "store of value" chains. Platforms like ethereum are an operating system for decentralized finance and commerce. Think of bitcoin as DOS and ethereum as Windows or Mac OS. There is nothing wrong with DOS. It came first and was an essential part of the computer's success. Us geeks grew up on DOS, but computers only went mainstream when Windows and Mac OS appeared.DOS is difficult to learn, tricky to program and fe Continue reading >>

Ethereum Updated - Moving To Byzantium | Genesis Mining

Ethereum Updated - Moving To Byzantium | Genesis Mining

One of the most interesting things about the Ethereum Blockchain , is that its core software allows developers to create Smart Contracts which are run in computers around the world. And just like your tablet, smartphone or laptop need to be updated every once in awhile, so does the Ethereum software. At first there was only Metropolis, the code name used to describe Ethereums next big update which was supposed to bring better scalability, privacy and robustness to the network. Delays in its development process and unexpected hacks to the network forced the development team to split the Metropolis update into two phases: Byzantium and Constantinople. While the launch date for Constantinople has not yet been defined, Byzantium was set to be launched through a hard fork triggered with the arrival of block 4,370,000 . This happened last 16th of October at 05:22 +UTC. Unlike the SegWit drama back in August which resulted Bitcoins hard fork and the creation of Bitcoin Cash, Ethereums Byzantium update went smoothly and without major events. Byzantium is a mostly under-the-hood update, meaning that end users will notice close to nothing when using their Ether in their day to day transactions. Through the implementation of 9 Ethereum Improvement Protocols (EPIs) , the Ethereum Foundation is taking its blockchain to a whole new level. Byzantium focuses on three things: giving developers new tools to develop better smart contracts, giving miners a better ecosystem in which to carry out their activities and lastly, laying the groundwork for the Constantinople update. Smart contract developers which have updated to Byzantium now have four new opcodes designed for the Ethereum Virtual Machine which should ease their development activities. Moreover, theyve been treated to precompile Continue reading >>

What Is The Ethereum Ice Age?

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 >>

Can And Will Eth Difficulty Drop? Low Eth Value Could Be Good For Us In The Short Term. : Ethermining

Can And Will Eth Difficulty Drop? Low Eth Value Could Be Good For Us In The Short Term. : Ethermining

As I am sure many of us have, I have been giving serious thoughts as to the feasibility of continuing mining vs. cashing in my hardware now and investing that straight into ETH. Long term I am a believer that we can see ETH hit $2k or maybe $3k, but right now with difficulty sky rocketing, things aren't looking so rosy in terms of getting ROI for my new rigs. What I am wondering is can ETH difficulty actually drop signifcantly? I don't understand the mechanics of how it works so I am hoping someone can enlighten me. Looking at the charts on CoinWarz I can see small dips, so I assume it is possible. Is it possible for it to go backwards significantly, in theory? Assuming it can go backwards, I am thinking that a drop in the value of ETH is actually the best thing for us. All the hashpower that services like Nicehash have directed at ETH can suddenly be redirected elsewhere as other coins appear to be more profitable in the short term. This in turn may actually decrease the difficulty, allowing those of us with goals of holding long term ETH to generate coins at a faster rate again. So, I am thinking... seeing ETH drop down in value for 6 months or so may actually be the best thing for those of us who believe in it long term and plan to hold till it hits $2k+. Continue reading >>

Ethereum Price Analysis - The Network Marches On

Ethereum Price Analysis - The Network Marches On

Ethereum Price Analysis - The network marches on Josh Olszewicz , 17 Oct 2017 - Ethereum , Ethereum Price Analysis , Opinion Ethereum ( ETH ) now has a US$31 billion market capitalization , second only to Bitcoins US$93 billion. Over the past 24 hours, ETH was the second largest digital cryptocurrency or asset by trade volume, below Bitcoin .Despite a spike in price in the days preceding the Byzantium Fork , which is nowliveand running smoothly, price remains largely range bound.The Metropolis update will also include a second hard fork, Constantinople, expected in 2018. After any fork or protocol change event, its important to evaluate how the changes were perceived by the network and why, especially with a cryptocurrency with a US$31 billion market cap. The metrics include; transactions per day, difficulty, hash rate, block time, and total nodes. Transactions per day will continue to rise should the network demand continue unabated, just by the nature of these changes. One of the goals for Metropolis is to increase scalability through transaction capacity of the network. This can either be done by decreasing block time, thus allowing for more transactions per day, or, increasing block size. In this case, block times have dropped significantly. Difficulty has also dropped significantly, as scheduled . Block time and difficulty are directly related. Should hash rate remain the same, a decrease in difficulty means a decrease in block time. Hash rate has now hit a new ATH, with some miners likely attempting to cash in on the substantial decrease in difficulty. Although the difficulty bomb has been delayed by one year, scheduled difficulty increases will continue, again squeezing mining profitability. Block rewards have dropped from 5 ETH to 3 ETH to combat inflation as w Continue reading >>

7 Answers - Why Is Ethereum's Difficulty Rising When Ethereum Is Down 50%? - Quora

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 >>

Were Mining Ethereum Again This Is How Much We Are Making

Were Mining Ethereum Again This Is How Much We Are Making

Were mining Ethereum again This is how much we are making Toward the end of 2017, we switched the software on our GPU mining rig from Claymore mining Ethereum to NiceHash. Our returns with Ethereum had been dropping rapidly , and the amount of time it took to mine 1 ETH had grown from just over 200 hours to 800 hours in three months. With the price of Bitcoin rising as our Ethereum returns dropped, we switched to NiceHash which let us mine altcoins which were then exchanged for Bitcoin. All was grand from there, until the massive NiceHash hack in December 2017. NiceHash was taken offline while the hack was investigated and our 6x RX580 rig was left idle. This proved fortuitous, however, as the start of our Ethereum mining coincided with a sharp rise in the cryptocurrencys price. When we started mining Ethereum in June 2017, it was worth around $360 and we made 1 ETH in under 10 days. This slowed to 1 ETH every 33 days around the middle of September 2017 when Ethereum had dropped to $260. With the returns dropping both in terms of Ethereum and US dollars and therefore rand we switched to NiceHash to bring in Bitcoin. After the NiceHash hack in December where we lost around $50 worth of Bitcoin at the time, as it was in the NiceHash wallet we downloaded the latest version of Claymore. The plan was to mine Ethereum in the interim while NiceHash was secured and brought back online. NiceHash has since come back online, but our rig is still humming to the sound of Ethereum mining thanks to its rise in price. Our Ethereum returns are still low, and we currently average a bit under 0.5 ETH per month with the rig performing at 120Mh/s. However, as Ethereum is sitting above the $1,200 mark (at the time of writing), our US dollar returns and by extension, our rand returns are muc Continue reading >>

Ethereum 'difficulty Bomb' May Not Happen For Another Year Or Two - Bitsonline

Ethereum 'difficulty Bomb' May Not Happen For Another Year Or Two - Bitsonline

Ethereum Difficulty Bomb May Not Happen for Another Year or Two There will be another delay for Ethereum minings difficulty bomb and switch to a proof-of-stake (POS) network, developers say. The decision could affect miners economic decisions in the near future, such as how much to invest in equipment and how much hashing power to devote to ETH. Also read: Shanghai Authorities Halt Blockchain Event, but No Fears of Wider Crackdown Increased Difficulty Means Leaner Times for ETH Miners There will likely be a squeeze on Ethereum blocks and block rewards from now until a new update arrives in late September. Reports from an Ethereum developers conference call last week said the long-proposed POS implementation, called Casper, will still not be ready soon. Originally planned for late 2017, the roadmap could push Casper back to the end of 2018 or later. Moving to POS has long been part of Ethereums roadmap, though the exact timing is unknown. It would fundamentally change the network, removing all ETH mining activity as it currently exists. Ethereum currently mines using proof-of-work (POW) like Bitcoin, where powerful machines race to solve a complex math problem and receive block rewards. Ethereum blocks are mined roughly every 12 seconds (depending on difficulty) and the block reward is 5 ETH. The rapid rise in ETH value from around $8 USD at the start of 2017 to around $400 in June has seen a rush to mine the token . It has also created a worldwide shortage of GPU cards. Under a POS model, Ethereum would require no GPUs at all. The difficulty bomb is code inserted into Ethereum that increases POW mining difficulty exponentially in preparation for POS introduction. The period where it gets too difficult to mine at all is called the Ice Age and its already beginning. The Continue reading >>

Used Gpus Flood The Market As Ethereum's Price Drops Below $150 | Hacker News

Used Gpus Flood The Market As Ethereum's Price Drops Below $150 | Hacker News

Just took a quick look at this.If you are located in the 'mining valley' of Washington where power is ~2c/kwh you are still getting healthy profits. A computer with 7 GTX 1070 graphics cards should produce ~230 mh/s and draw 1 kw. This would cost approximately $30/month in power factoring in kw demand + cooling. The above setup will currently generate $385/month in ETH. So basically for miners who are in the right spot with the right facility, this is still profitable. The question is of course for how long. You also need to factor in the cost of equipment, datacenter, employees and difficulty/price. But even if you dont have a facility in washington and just mine from your apartment, your power cost would probably be $100 a month. So its still 'profitable', just not nearly as much as it was in the run up. Cliffnotes: 'professional' miners dont care. Even with the 'crash' today, they are making more per day than they were before the entire run up. For instance the 'worst' time for mining was December 2016 where you would only make $7.50 a day gross in ETH. Call me naive, but am I the only one who looks at mining as one of the worst inventions for consuming energy possible? Almost all of society functions on energy, some of the largest breakthroughs in society have been on sudden abundance of cheap energy and the machines, vehicles products they can create. Entire economies can be crippled by rising costs in energy (oil shocks of the 70s) and boom by sudden drops in cost of energy. So we've created an "industry" where you are essentially paid by comverting energy to waste. Paid to perform extremely intense difficult (ie wasteful) operations to back a useful technology (digital currency). Assuming it catches on, energy will never be cheap, there will always be a higher f Continue reading >>

Go Ethereum - What Is The Unit For Measuring Difficulty - Ethereum Stack Exchange

Go Ethereum - What Is The Unit For Measuring Difficulty - Ethereum Stack Exchange

What is the unit for measuring difficulty The last block of my private net has the difficulty of 5162920460. But what unit is it? Because it is not hash rate, the hash rate is when you divide the difficulty by the average block time which in my case is 5162920460/14 = 368780032.857142857 , which is 368.7 Mega hashes per second. Are my calculations correct? Just to note, the term isn't described in the glossary ( github.com/ethereum/wiki/wiki/Glossary ) but posting here as the link may help some people in the future. Nov 2 at 16:24 that glossary has a mistake. they are saying that the average time for finding a block in Ethereum is 1 min, this is incorrect, it is 14 seconds. quote: eg. N = 10 for Bitcoin and 1 for Ethereum Nulik Nov 2 at 16:43 Difficulty units are basically "hash/solution" (sort of). It's a measure of how much work is required to find a hash with some # of leading 0s. Your calculations are correct, difficult is designed to float with hash power, so you can estimate the current hash rate from the difficulty. (X hash/solution) / (Y second/solution) = Z hash/second In the case of Ethereum, Y=~14 seconds. The calculation for difficultly attempts to keep Y at ~14 seconds by modifying difficulty (X) to match the current hash rate (Z). However, the protocol is not inherently aware of Z, so it estimates Z based on the time between the current and previous blocks. Therefore we usually don't think of difficulty as having any specific units, except to act as a measure of how much work is required to find a block solution. If dividing the difficulty by seconds gives you Hashes/second then the unit of difficulty must by Hashes. However, the way it's defined in the yellow paper implies that it's a number that does not have any units (similar to coefficient of frictio Continue reading >>

Ethereum Gold Rush Wanes As Price Plummets, Mining Difficulty Skyrockets

Ethereum Gold Rush Wanes As Price Plummets, Mining Difficulty Skyrockets

Ethereum Gold Rush Wanes As Price Plummets, Mining Difficulty Skyrockets It appears the recent gold rush surrounding Ethereum is coming to an end. The price of Ether dipped below $200, and the mining difficulty level jumped by nearly 20%. If youre getting into Ethereum mining now, its probably too late. Cryptocurrency (also known as crypto coins or altcoins) found its way back into the public eye in recent months when Ethereum's value spiked dramatically: At the end of 2016, Ethereum was worth $8.22 per coin, but by February 28, 2017, the value of Ether doubled to $16.05. On March 6, Ether peaked at $19.45, and 10 days later the value more than doubled again, to $43.87. By the end of April, the value of Ether coins began rising again, and by May 6, Ether was trading for $94.81. This is around the time that people outside of the crypto-mining scene started to pay attention, and many jumped into the mining craze--so much so that the worldwide inventory of GPUs was all but wiped out . Good luck finding an AMD RX 570 or 580 on the shelf, and if you happen to find a GTX 1060 or 1070, the price will likely be jacked up through the roof . Mining isnt the only craze around Ether. People are buying the coin on exchange markets such as Coinbase.com to get in on the investment opportunity. As a result, the price of Ether continued to skyrocket through May and well into June. On May 25, the value reached $195.27. The price dipped slightly the following day, but it rallied again and reached the all-time high value of $380.28 on June 13. Following that peak, the price of Ether began to drop, and it hasnt yet begun to recover. At press time, the price is sitting at $198.75its lowest point since March 29. Ethereum is in no way dead, but the opportunity to make a handsome living from a Continue reading >>

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