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So as the difficulty of mining BTC increases, GHs value decreases, and this makes sense since it keeps on deflating on CEX.IO. I spent like 5 bucks 6 hours ago and got a juicy 0.6 GHS, then I got greedy and wanted to to try trading for profit and wound up losing 0.1 of it before bed. It looks like the value will bounce back for a while after yesterday's fall, but if what I'm reading about PB Mining is true, it will likely fall again.
@ceruleanspark do you happen to know offhandhoof what the monthly revenue of 1GHs is in BTC? And when and how much it's estimated to drop as the difficulty increases? I'm thinking I might sell a fraction of my GHs before then.Saturday, 15-Mar-14 13:26:02 UTC from web-
@pony The effect of difficulty is supposed to be to balance increases in the network hashrate in order to keep the actual monetary value of the output stable. Difficulty does not increase linearly, as a lot of the calculators assume, but actually increases (and decreases) in proportion to the total hashrate of the entire bitcoin network. This leads to a sine-wave like pattern as difficulty spikes, those who can swap to other currencies, dropping the overall hashrate, causing the difficulty to retarget and drop again, which leads to people switching back to BTC and so on and so forth. A number of alt-coins have implemented various tweaks to their algorithms to specifically prevent this pattern of behaviour, with Doge being the post recent to install it.
Saturday, 15-Mar-14 13:44:12 UTC from web-
@ceruleanspark I don't see the sine wave-ish trend, but I may not be looking in the right place. https://docs.google.com/file/d/0B6a17Qe3LReURF91ZE1HdTFsRE0/edit
Saturday, 15-Mar-14 13:55:30 UTC from web
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