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What is Your Bitcoin Mining Unit’s LifeCycle?

By | May 18, 2014

browse around this website Crypto-coin mining looks simple when you first examine it, but it’s very complicated. When I first looked at mining, I thought, well, all I need to do is setup the hardware, turn it on, and watch while my money grows. Although at one level that is all indeed that needs to be done, there are so many things to consider to be truly profitable.

rencontre en ligne dvdrip bitcoinminingunitFor one, the so-called network difficulty is something to understand and consider when making decisions. What is network difficulty? It all boils down to the fact there is a hard limit to the quantity of Bitcoins that can be mined. This hard limit imposes an “issue schedule” by which the limit should be reached during the year 2140. Such issue schedule requires that

good credit score dating site 1. Only a certain number of blocks can be mined per minute; and
2. The amount of Bitcoins rewarded for every block is fixed, and is reduced in steps, according to a schedule.

florence sc speed dating The way by which the network enforces the issue schedule on all miners is called the network difficulty. Network difficulty is therefore simply a measure of how much work needs to be done by miners per Bitcoin mined. It approximates the natural phenomenon that when something like gold is scarce, mining it becomes increasingly difficult.

top 20 dating questions What this means for you as a miner, in practical terms, is that any hardware you buy now will surely lose the competition against newer, faster hardware that mining chip suppliers are constantly building. This means that, given the hardware you bought now, you cannot expect your mining yield to grow using the same hardware, in terms of Bitcoins per month. Your yield of rate of earnings using the same hardware becomes smaller and smaller as time goes because more miners are coming online competing with your hardware. Another way of saying this is that your return on investment (ROI) goes down in time.

index It is therefore crucial that you have a projected time in which the hardware you bought will have paid for itself. The projected time by which your hardware will have paid for itself will largely determine whether you will be successful as a miner or not. Given that ROI diminishes in time, generally you want to be able to recoup all your investment in about a month. After that, continuing earnings can only be good. When the point is reached by which your fixed monthly expenses exceed your earnings, you can get rid of the hardware by selling it. At that point it’s time to purchase new, faster hardware.

seniors rencontres gratuit Who would buy obsolete hardware? The price will be a small fraction of what you paid for it, of course; but would anybody even buy it? Centerus, for one, would buy it. Here we explain why Centerus would buy it back, and maybe by learning why, you would not sell it. You certainly have the option of keeping it.

site de rencontre tats-unis The reason that Centerus would buy back your condo hardware is that it can be used to mine other crypto-currencies like PPCoin. A PPCoin will always have a value that is only a small fraction of a Bitcoin. This PPCoin to Bitcoin ratio will change in time, but this change will be very gradual, kind of like the ratio of Silver to Gold value. As such, the mining equipment used to mine PPCoins should also be that which has a price which is a small fraction of the value of Bitcoin mining equipment. The upshot of all this is that your old mining condo hardware, although now much cheaper, will still hold some value even after it has become obsolete with regards to Bitcoin.

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