Etherium hashrate. Build your miner or buy from Genesis Mining?

in #cryptocurrency7 years ago (edited)

First some details about mining Ethereum and then arguments.
download.jpg

Bitcoin mining sha256 is a gpu/cpu oriented mining. That's why it was possible to integrate more cpu/gpu in one chip and make an ASIC, smaller, faster then graphic cards.
Ethereum mining, dagger-hashimoto algorithm, it is ASIC resistant. How? Well, by using graphic memory, and a lot of it. Mining happens on a DAG file, every miner has to work on that file that changes with every operation. And it requests data from all over the file. So for every simultaneous hash operation you have to have the dag file in memory. That is why to create an ETH/ETC asic for every tiny miny miner in that ASIC chip you need 2-3 GB of video ram.

Difficulty does not affect the hashrate, an example is etc and eth. It affects only the reward. Eth has 10x difficulty of ETC, same miners, same algorithm, even same coin (hard forked). Yet you mine ETC and ETH with the same hashrate. Even the income in $ is the same. In conclusion the rise and fall of the coin price will affect the difficulty as more miners come and go driven by profit, but it will not affect the income in $$. You will get less expensive coin or more cheaper coin. (search google "etc difficulty chart" and "eth difficulty chart")

What will affect your income in time, and the hashrate is the increase of the DAG file in time.THIS WILL drop the hashrate in time. SAPPHIRE R9 280x (22 Mh/s for Ethash)......that was in april /may 2016. Now barely 12-15 Mh.( Again, search google. You don' have to take my word for it.)

Dag file increase is approximated to be :
The 2GB limit will be hit around mid-December 2016
The 3GB limit will be hit around mid-April 2018
The 4GB limit will be hit around mid-September 2019

This WILL have a direct impact over your income if you build your own miner, opposite to buying hashpower and not have to pay for electricity or hardware.

Again... think this is worth it only because dagger-hashimoto is ASIC resistant. Integrated chips have a fast evolution, I do not think that sha256 bitcoin hashrate is worth buying, as it will be dwarfed by new chips and ASICs.

EDITED to answer @[-]kyle.anderson in the replyes:
Edited because I don't think I can post pictures in the reply.
This link:
https://www.cryptocompare.com/mining/guides/how-to-mine-ethereum-the-easy-way-an-ethereum-mining-contract/
And this guy being wright at the time in the reply (on the article from the link):
genesis.png

The eth hashrate is even cheaper now , 4,900.00 USD 175 MH/s, that's 28$/Mh, 27 using a promo code, not 44 like then, and it is for 2 years not 1. it's on sale.
His 4x 7990 bought a year ago, yes 200Mh then, now less than 100 Mh. And 7990 price a year ago........just search....and now they are garbage.
So I think he would have been in more profit with a mining contract. Imagine how much the hashrate will go down in 2 years, because etc is not going POS and you can also mine etc with it.

**You can support this channel by voting , following, resteeming, and also by using my genesis mining code if you purchase hashrate.
You also get 3% price discount when purchasing hashrate by using the promo code : 3GBXSk
** by following you get news and also everyday I share what I buy with my genesys payout, what I consider "best offer" at the time

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Nice write up.
Cloud mining is always a scam. If it was profitable, they would be mining themselves.

I do not agree. In business first you build with your money and then if you have a profitable business on the hand but no capital you borrow. That is exactly what genesis is doing by selling hashrate . Advantage for me as I pay less for power and hardware, and have a constant hashrate opposite to a declining one with my own miner, advantage for them as they make more profit. ...

Well you know your shit. I'll add a caveat - there are some lending models with respect to cloud mining that are legitimate.
I would sure rather have my own hardware though.

good luck. It is your option and decision. First I would advice to add power consumption, hardware cost and loss by hashrate lowering over the next 2 years....and if it's cheaper than genesis green power offer.....why not? . For me at the moment genesis is cheaper. 4x amd 280x are giving me at the moment 50Mh and drawing almost 1kw/h. and r480 is out of the question, with 600$( rx480+ some money for power) I buy 20 Mh/2 years from genesis

There ya go! I have my farm of 480s cranking hard. I like contributing to the decentralization.

Edited my post to put a few data and a picture for you at the end of the article.

You don't get to be Iceland's biggest electric power consumer by investing in hashrate only your own capital. You have draw money from somewhere. I don't think it's a scam. At the end it's a contract, you buy hashrate. Some contracts are better, some are worse, like when you buy a car, If you don't know anything about cars you can very easy buy a sh junk. :)

Valid points. Cloud mining is certainly not for me.

Thanks for posting, very informative. I invested in ETH and LTC mining. 2 year contract for ETH and bought own L3+ hw for LTC.

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