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Total hashrate slowly decreasing

Discussion in 'Mining' started by CrisTor, Oct 9, 2015.

  1. CrisTor

    CrisTor New Member

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  2. stan.distortion

    stan.distortion Active Member

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    Cheers, hadn't seen those charts before. It'd be nice to see it building more but the slight downward trend could be a result of the steady price and newness wearing off, there's no real hardware race with X11 for now at least and there's no sudden movements to suggest big operations moving in or out but it could be something for the PR department to consider, maybe look at what kind of hardware universities etc. have and approach them if it would be clearly profitable for them to support the network with spare cycles.
     
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  3. CrisTor

    CrisTor New Member

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    Maybe you are right, but mining is a sort of barometer of the future market prices. If the hardware optimised for X11 is not fully there, is maybe for a lack of market. "Egg-chicken" dynamic. Anyway, these charts are pretty interesting.
     
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  4. stan.distortion

    stan.distortion Active Member

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    Ahh, price... not my thing but have you been keeping up with the "Evolution" announcement from Evans presentation at Bitcoin Wednesday?

    [​IMG]

    The PR budget is active too so hopefully the hash rate will begin to show the effects of that soon.
     
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  5. oaxaca

    oaxaca Well-known Member
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    A "partial lack of interest" does not equal "no interest". Every day the 2 kinds of miners (network supporters and make money-ers) face the same questions:

    1 - Am I going to mine today, and if so which coin?
    2 - Will I sell these coins or hodl them?

    For the "make money-ers", the decision is heavily influenced by price.

    I would argue that there is either a weak or very weak correlation between hashrate and future price. There are so many other factors that influence future coin prices; development, adoption, competition, news reporting, non-crypto financial trends, etc.
     
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  6. CrisTor

    CrisTor New Member

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    The mining process is typically in ´red´ (losses, even if it's somehow possible to mine day on the fly checking prices) therefore the miner hopes into a price rising otherwise he will just wait and buy. The pure mathematical correlation is hard to find. It´s true. right now I'm trying to see if using a wavelet analysis something pops out.

    P.s.
    BTC miners (99% total hash power) are essentially losing money hoping for a price increase
     
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  7. oaxaca

    oaxaca Well-known Member
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    Large BTC miners have invested large sums of money in Application Specific hardware (ASIC), infrastructure, and training. If they turn off the machines they can save power costs, but still have all the sunk fixed costs. Again, every day they make the decision to mine or not. The weakest hands will stop, leaving marginally increased profits for the efficient operations. This game of equalibrium has little to do with future price.

    That being said, if you find something, I'm all ears...

    [​IMG]
     
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  8. CrisTor

    CrisTor New Member

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  9. stan.distortion

    stan.distortion Active Member

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    Hadn't really considered that before, I can't think of any other process that will run into unprofitably now in the hope of rising prices later, probably the highest endorsement of cryptos imaginable :) Its something worth considering the next time the media attacks cryptos over energy usage, they ignore how hard a tight margin of profitability drives any industry towards higher and higher efficiency but crypto goes beyond that, its margin is also a race against time and pushes the pace of development of more efficient hardware way beyond that of other industries.
     
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