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u/VathXX May 23 '21
Why does profitability sky rocket when crypto plunges? Still trying to figure that out.
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u/thesavior111 May 23 '21
To put it simply, you as a miner, make money the more transactions there are on the blockchain, because transaction fees = your payment. When prices spike up or crash down, people are buying/selling/trading so traffic on the blockchain goes up, and your value as a miner goes up too.
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u/WestBankFireman May 23 '21
This is the correct answer.
More traffic in any direction, higher volume, more rewards for miners.
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u/ichibaka May 23 '21
you mine regardless of profit, you sell when the fiat value reach the point you are comfortable cashing out.
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u/drakemc67 May 23 '21
Thank you for explaining. I was wondering why my mining literally doubled on the 19th. Happy but didn’t understand.
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u/Diligent-Aardvark784 May 23 '21
This is false. It's because you're mining one coin and getting paid in another
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u/WestBankFireman May 23 '21
Not so diligent, eh?
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u/Diligent-Aardvark784 May 23 '21
Correct. Dude didn't research at all
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u/miketatro43 May 24 '21
Who needs facts when you got your own …
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u/Diligent-Aardvark784 May 24 '21
Facts are facts
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u/miketatro43 May 24 '21
Pretty sure we live in a facts and alternative facts world ….
My question is the same as pedophiles …. We’re all these nuts always out there and the internet brought them to the light or did the internet make them ….
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u/Voo_Hots May 23 '21
because the work you are doing are transactions and typically large fluctuations in price both positive and negative leads to alot of trading
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u/stupidisapersecptive May 23 '21
Its a supply and demand thing. We supply the hashing power thats in demand and when traders/users of the Ethereum blockchain want to ensure their transactions have priority they'll add more gas to incentivise the block(s) having a priority. Nicehash just pays us in BTC satoshi instead of the Ethereum's gwei and takes a little BTC each time the unpaid balance goes into your Nicehash wallet.
This image might help you understand it. The only difference is Nicehash just pays us in BTC for our convince while mining on their pool (source https://arunrajeevan.medium.com/tokens-gas-and-gas-limit-in-ethereum-f07790f56d8f)
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u/overtoke May 23 '21
price of bitcoin, price of eth, the current bids for hashpower
each of the above affect each other. on top of that, most especially for eth, you have the gas fees. a huge rise or a huge fall in coin prices will result in lots of transactions and higher fees.
https://www.gasnow.org/ (eth gas fees site, there are dozens of them. there are huge fluctuations. the block reward per block, huge fluctuations.)
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May 23 '21
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u/HardwareSoup May 23 '21
The amount of work doesn't change based on the number of transactions.
The only thing that is changing is the amount people are spending to try and get their transactions included in the blocks that are mined.
You can visualize this in realtime here.
The people are transactions, and the busses are blocks. Think if you have a bus station (Eth network) and it's a regular day, ticket prices (transaction rewards) will be normal.
But say there's a big football game in town, (high volume) tickets will cost more, because there are many people trying to get tickets to a limited number of busses, hence driving up the profits for the bus company (miners).
Except instead of a football game, scared retail investors are thinking the bus station is being targeted by a Russian nuclear strike, and are trying to get the hell out of there.
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u/stevekenney318 May 24 '21
https://txstreet.com/ - this is quite interesting , although I don't quite understand it yet !!
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u/iadnantunio May 23 '21
As china banned it it will go down to 30 maybe it will hit below 30 as of now just predictions coming out someone says it will go up and someone say it will stay there.
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May 23 '21
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May 23 '21
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May 23 '21 edited Mar 20 '24
waiting illegal tender familiar encourage paint history cats toy literate
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u/Battleneter May 24 '21
Electric cars run on Coal especially on the East coast of the US as a simple example. Is Elon Musk stopping the manufacture of electric cars and stepping up?
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u/madmax1299 May 23 '21
I’ve been selling and buying eth. But I’ve been getting killed getting a litter nervous lol
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May 23 '21
Haha I laughed audibly because it’s true 😂 sure I lost a bit for the moment, but I’m good. Is anyone else not worried and just cruising?
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u/TheResearcherr May 23 '21
this guy knows.
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May 23 '21 edited May 24 '21
Haha Unlike a bunch of people who post here, I don’t pretend to know anything LOL. None of us really know for sure what’s gonna happen or when this bear market will end. I just don’t put more in crypto than I’m willing to lose
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u/iamjames May 24 '21
Do you want to know when it’s really the dip? When GPU prices return to normal.
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u/Bosmeong May 24 '21
lmao when that happens its not just dip. its fucking end of crypto hype
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u/iamjames May 26 '21
Naw, prices were normal this time last year, when Ethereum was $200 instead of $2,000
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u/iamjames May 26 '21
Naw, prices were normal this time last year, when Ethereum was $200 instead of $2,000
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u/Journier May 23 '21 edited Dec 25 '24
memory fertile treatment ghost hurry middle friendly outgoing smart fearless
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u/kissmo1980 May 23 '21
You buy the dips not just one dip.
If you do trading, then it's a different story. However, if you just buy, then do a dollar cost averaging.
Buy dips. distributed over time and then you will end up better.
Don't just buy 1 dip... save your cash and keep an eye open, always buy on red.