Another day of profitability: September 17

For those who are interested, here is a profitability report for September 17, using statistics reported on the two largest competitors' websites.

Prohashing: 0.00007366 BTC/MH/s/day
CleverMining: 0.00007000
NiceHash: 0.00006662

I didn't include the smaller pools because they have such high variance that a fair comparison is impossible. At some point, I plan to scrape their websites to display this data daily on our frontpage.

Nice! Even with the loss of hash rate (5%) when switching from Nicehash you still beat them!

I'm really enjoying the profitability over the last week, but it seems that profitability is dropping as the customer base grows in GH. Are we at risk of saturating smaller, more profitable coin networks (51%) and being forced to mine larger coin networks that are less profitable?

Yes, that is a consequence that is unavoidable with a higher hashrate. That said, 60% of our revenue comes from Gamecredits, AsiaDigicoins, and Novacoins, and even with the current hashrate we still represent a very small fraction of those networks.

I think the slipping scrypt mining profitability is more due to scrypt miners coming online in general rather than just there being more miners at Prohashing. Steve speculated that the arrival of fall and winter means that many previously unprofitable miners are coming back online, and that could be the cause. One other cause I noticed is that Zonecoin's 100,000 block proof-of-work period ended, so we can no longer mine that profitable coin.

On a side note, I notice that even when our profitability declines, our competitors' profitabilities decline as much or even more and we remain the best. Everyone has to share coin networks and markets, so this indicates to me that we have the best coin selection and trading algorithm and they have no additional revenue streams that haven't Implemented.

Chris Sokolowski wrote:Yes, that is a consequence that is unavoidable with a higher hashrate. That said, 60% of our revenue comes from Gamecredits, AsiaDigicoins, and Novacoins, and even with the current hashrate we still represent a very small fraction of those networks.

I think the slipping scrypt mining profitability is more due to scrypt miners coming online in general rather than just there being more miners at Prohashing. Steve speculated that the arrival of fall and winter means that many previously unprofitable miners are coming back online, and that could be the cause. One other cause I noticed is that Zonecoin's 100,000 block proof-of-work period ended, so we can no longer mine that profitable coin.

On a side note, I notice that even when our profitability declines, our competitors' profitabilities decline as much or even more and we remain the best. Everyone has to share coin networks and markets, so this indicates to me that we have the best coin selection and trading algorithm and they have no additional revenue streams that haven't Implemented.

So then let's hope that mythical A4 Dominator continues to not ship as long as possible!
http://www.innosilicon.com/html/news/14.html

Litecoin seems pretty steady right now as are Dogecoin & Viacoin (Top 3 by hashrate).
https://bitcoinwisdom.com/litecoin/difficulty
Dogecoin
http://www.coinwarz.com/difficulty-charts/dogecoin-difficulty-chart
Viacoin
http://www.coinwarz.com/difficulty-charts/viacoin-difficulty-chart

By the time you get to Gamecredits, the network hashrate drops to 44GH so the soil gets pretty thin pretty fast.
http://www.coinwarz.com/network-hashrate-charts/gamecredits-network-hashrate-chart

Novacoin drops to 7GH and would be very susceptible to difficulty increases, even from PH.
http://www.coinwarz.com/network-hashrate-charts/novacoin-network-hashrate-chart

Sunday's numbers:

Prohashing: 0.00007433
Clevermining: 0.00007188
NiceHash: 0.00006430

excelerator wrote:

Chris Sokolowski wrote:Yes, that is a consequence that is unavoidable with a higher hashrate. That said, 60% of our revenue comes from Gamecredits, AsiaDigicoins, and Novacoins, and even with the current hashrate we still represent a very small fraction of those networks.

I think the slipping scrypt mining profitability is more due to scrypt miners coming online in general rather than just there being more miners at Prohashing. Steve speculated that the arrival of fall and winter means that many previously unprofitable miners are coming back online, and that could be the cause. One other cause I noticed is that Zonecoin's 100,000 block proof-of-work period ended, so we can no longer mine that profitable coin.

On a side note, I notice that even when our profitability declines, our competitors' profitabilities decline as much or even more and we remain the best. Everyone has to share coin networks and markets, so this indicates to me that we have the best coin selection and trading algorithm and they have no additional revenue streams that haven't Implemented.

So then let's hope that mythical A4 Dominator continues to not ship as long as possible!
http://www.innosilicon.com/html/news/14.html

Litecoin seems pretty steady right now as are Dogecoin & Viacoin (Top 3 by hashrate).
https://bitcoinwisdom.com/litecoin/difficulty
Dogecoin
http://www.coinwarz.com/difficulty-charts/dogecoin-difficulty-chart
Viacoin
http://www.coinwarz.com/difficulty-charts/viacoin-difficulty-chart

By the time you get to Gamecredits, the network hashrate drops to 44GH so the soil gets pretty thin pretty fast.
http://www.coinwarz.com/network-hashrate-charts/gamecredits-network-hashrate-chart

Novacoin drops to 7GH and would be very susceptible to difficulty increases, even from PH.
http://www.coinwarz.com/network-hashrate-charts/novacoin-network-hashrate-chart

Even if the Gamecredits hashrate is 44 GH, we are currently only responsible for 18% of Gamecredits blocks. Even if we hit the maximum hashrate the pool is configured to assign to Gamecredits (49%), there is still plenty of room to grow on that network alone. Our worry is that Gamecredits will suffer a 51% attack, and we want to grow as quickly as possible so that we are in a position to save the network should the people who attacked Bitmark return.

I've also noticed that while there has been an increase of scrypt hashrate in general due to those miners coming online, a lot of it is going to other coins rather than litecoin. Chris has also noticed that at least one exchange is favoring scrypt coins over other types because the pool provides volume in those markets, which jumpstarts trading.

But overall, I think the reasons for reduced profits recently are (most important first):

• There simply isn't a bubble going on in any altcoins right now, as happens occasionally with coins like Bitmark and Yocoin and which will happen again with some other coin at some point, as it always does.
• Innosilicon is bringing its miners online for their initial "testing" on Litecoin, which is why diff has risen to 54,000 - these miners will ship in a week after the "testing" is finished.
• Air conditioners are going off, so miners that were not profitable are coming back online. As the heat goes on in October, those miners will become even more profitable as the heat no longer needs to be vented out the windows and they can replace other sources of heat.
• Our hashrate has stabilized the markets in the very easy coins (diff < 1), which prevents periods of insane profitability in them.

excelerator wrote:Nice! Even with the loss of hash rate (5%) when switching from Nicehash you still beat them!

Have you tried using h=5? That may increase your hashrate by assigning you to slightly less profitable coins if the cause of the problem is work restarts. If there is no difference, then remove the h= argument.

Steve Sokolowski wrote:

excelerator wrote:Nice! Even with the loss of hash rate (5%) when switching from Nicehash you still beat them!

Have you tried using h=5? That may increase your hashrate by assigning you to slightly less profitable coins if the cause of the problem is work restarts. If there is no difference, then remove the h= argument.

That is exactly the value I have been using.

excelerator wrote:

Steve Sokolowski wrote:

excelerator wrote:Nice! Even with the loss of hash rate (5%) when switching from Nicehash you still beat them!

Have you tried using h=5? That may increase your hashrate by assigning you to slightly less profitable coins if the cause of the problem is work restarts. If there is no difference, then remove the h= argument.

That is exactly the value I have been using.

In that case, I suggest that you try h=10 and see if it makes any further difference. If not, then just revert it to h=5.