Prohashing Mining Pool Forums

you guys are overcomplicating this, you shouldnt be mining if you dont know why profits are dropping, just sell your equipment and save yourself the heartache, because you obiviously expect to set it and forget it and make the same amount daily. not to sound like a complete dick, but jesus guys, theres a post about this weekly, its quite annoying

dnprod wrote:you mine coins, you do not mine dollars

I thought we mined shares that were worth $$$ that were then converted into the coin $$ value of the payout coin we chose.
When the autopool swaps me to verge I still make my payout coin in profit, so I do not think we mine coins. I think we do actually mine some $ equalilant that is converted to the payout coin value.

dnprod, yes that is the reality. My explanation is why it's less.

CSZiggy, to double the value of the coin we must lose 50% of the miners in the entire network. OR use more services to make it more standard. The problem is Asia/Russia has an advantage because of the cheap electricity (poor quality, but cheap). They are beating the west; and essentially the west is feeding the system. They are siphoning it.

The trick to counter that, is to create more western excepted business that utilize bitcoin and altcoins. When you do that, it becomes a commodity and we are great at managing commodities.

No GregoryGHarding, bitcoin and altcoin IS something you can negotiate. IF the miners leave, then the pool fails. It's that simple, there the value is on the demand.

CSZiggy wrote:

Hobo01 wrote:The price of a BTC should be @ $2000.00 to $3000.00. We need to lose 1.5Million miners or lose 50% infrastructure or double the value of the coin at current rates.

But the value now of $7000 is over double what you say the price SHOULD be @ $2000-$3000.
So aren't we already at the stage you want us to be at?

Whats the break even on electricity at this point break?

If you lower the difficulty, lose miners. The price of bitcoin falls yes. But, you also produce more BTC easier - it will normalize. Right now it's too much torque on a system. It's like driving 1st gear to 40mph at 8000rpm. You can do it, but you don't want to keep doing it. You need to drop the RPM and shift into 2nd, which is less strain on the engine (and then preferably 3rd).

GregoryGHarding wrote:you guys are overcomplicating this, you shouldnt be mining if you dont know why profits are dropping, just sell your equipment and save yourself the heartache, because you obiviously expect to set it and forget it and make the same amount daily. not to sound like a complete dick, but jesus guys, theres a post about this weekly, its quite annoying

I agree 100% with Gregory ...You are really debating very basic, simple things that should be clear to you as a miners ...price is going down - your earnings IN $$$ amount is going down ...as simple as it is ...IMPORTANT metrics is your earnings in coins ...are they going down ...then is because of difficulty increase ...etc...etc ...CAPISCO?

But if the price of the coin is going down, and we are hashing the same amount each day.
Then shouldn't we earn MORE coins each day as the price of the coins drops?

I got caught up in my irritation at Hobo and his "you're stupid and I'm right" attitutude that I became focussed on just one point (the market value of a crypto is mostly affected by the trading markets). And that led me away from my actual question which was simply:

'was everyone experiencing a reduction in their reward'. I just wanted to validate that I wasn't having issues (hardware issues, network issues) and that PH weren't experiencing their own technical issues.

So yes, I do understand that If the overall value of the crypto market falls (the ability of PH to convert miners processing time into $$), then the $$ reward from PH will fall (they can't 'make' as much much from all the mining and therefore there is less $$ to pass on as a reward).

And if more people are mining, there is less reward to go round. So both supply (the number of miners) and the state of the crypto market value in general will have an impact on the payout from PH.

As for Hobo - your inability to intelligently articulate your point of view without resorting to name calling unfortunately negates some of the points that we might agree about (e.g. the underlying reason why banks and established entities are worried about cryptos).

I don't think just because most cryptos can be traded, that makes them exactly the same as stocks. Stocks and bonds are traded in similar ways but they are different finanical instruments. FIAT currency is traded in a similar way, but it doesn't mean that FIAT and Crypto is exactly the same. My point was, *trading* has the biggest short-term (please note that point) effect on the market value.

When there is negative speculation about cryptos (whether that is 'fake news' rubbish about how cryptos are the root cause of all drug dealing, or 'real' news such as countries talking about banning cryptos) then the trading market for cryptos is hit hard and quickly. The 'value' of coins (by that, I mean what you could convert to € or $ to buy food or any other tangible goods) plummets. That sudden change in value isn't because sudddenly a million miners stopped mining (or a million new miners started mining). It happens because people are more nervous of the future value and so they don't invest (buy) or they decide to get out of the market (sell). In that sense, bad news about cryptos has the same effect as a profit warning from a very large company - the share value drops. Hobo - your inability to see that there are *some* very good paralells between crypto trading markets and non-crypto trading markets, shows how myopic your view of life is.

As for your statement that "countries" are selling their BTC reserves - well, that may be the case but I don't think you'd be able come up with any reasonable proof that this is the case. More ignorant speculation. Or did you hear about it on the internet? Oh, it must be true then.

Hobo - I wanted to comment about your two shorter posts at 04:27 and 04:46, but you became even less literate and less coherant as you bashed away at your keyboard. Therefore, I have a feeling that there may have been some points that we agree on, but I really can't be sure. I really struggle to communicate with people that don't understand the difference between "you're" and "your", "It's" and "Its". It's a bit like talking to a sports fan who is so wrapped up in his/her own 'team', they can't actually converse about the other aspects of the sport.

BTC is the dog, other Cryptos are the tail (deliberately mixing my metaphores). Where BTC leads, the others get pulled along behind it. BTC rises in value, it pulls the market up. BTC falls and the market falls with it. This is both a short term strength (BTC is the poster child for cryptos) and a weakness. BTC is less practical than many (most? all?) alt-coins due to how impractical it is as a conventional and alternative currency for the purchase of goods and services). I believe (and hope) that cryptos will have a real world use in the future that benefit society, whether that is as a payment method or as a distributed ledger (DLT). But it's got a long way to go before it is accepted by society.

CSZiggy wrote:But if the price of the coin is going down, and we are hashing the same amount each day.
Then shouldn't we earn MORE coins each day as the price of the coins drops?

no. as said previously you are hashing coins, not dollars. it has to be this way because that is what mining
equipment does -- it solves cryptographic hashes to earn coin rewards. dollars are just arbitrarily associated
by the whims of the market.

the pool attempts to automate the choosing of which coins to mine at a given moment to maximize the market
dollar value, but, in the end dollars still boil down to what the market is willing to yield for any coins that are produced.
the dollar amount reported by the pool as earnings is also merely a snapshot estimate of a very specific moment in
time and the value of your payout-coin holdings will be constantly changing in the real world.