Quote:
Originally Posted by mtgordon
Icy,
Would you please put the estimated next difficulty and the current price on your graph? I think that would explain what a lot of the argument is about.
This is where it gets messy. People that use those calculators get flammed at for not "thinking about the difficulty increase".
The irony of that is these people make a graph not "thinking about the cost per bit coin".
Another important variable they miss the the speed bitcoins rise in value, which changes. The same with difficulty, difficulty goes up x amount at x amount of speed, both of these variables change that have followed the trend of price in bitcoins up to date, as you can view from charts and some graphs i qouted from another user who understands the concept.
When price recently shot up, many new users and existing users build more rigs to contribute to the network. This increased the speed and rate of difficulty, which both went up.
The price of bitcoin shot up to $30 and at the same time shot down to $8 in a matter of days, everyone who didnt understand bitcoin and trends were worried, me and a limited amount of others werent because we knew the price would balance out based on past trends, which is has now and is at a current going rate of $20 per bit coin.
When people see the bitcoin valued at $8 they do caculations and obviously figure its a terrible idea to build rigs. When this happens the speed in which difficulty increases, slows down. This can possibly lead to difficulty actually going down, which has happened in the past, or difficulty remaining the same for longer periods of time.
Play the game right and there is still lots of profit to be made. One main thing is learning how to build a rig with just what you need for making the most out of mining and nothing more.