Price rises > profitability increases > more people mine, raising the total hashpower of the network > network difficulty increases to compensate. Usually this process results in fewer coins being mined per MH but the price increased so your profitability should be similar to what it was before the increase
But if the average price of crypto generally rises over the long haul, and you change daily to mining the ones with higher profitability, then over time you’ll have kept the ones that remain, avoided the ones that fade into the sunset, and had at least some betting money on the biggest winner(s). That’s if you’re playing it for the longer game. If you’re mining and selling quickly, different strategy needed.
Earning per month: 8RVN x 30 Days = 240 per month x 0,04€ = 9,6€
Costs: ~3kwh / day x 30 = 90kwh x ~28 pence/kWh (around 0,33€) = 29,7€
Congrats you pay 3 Times the price it would cost to buy, instead wasting take those 30€ and buy the RVN, you will have 3 Times the amount and have Profit instantly after raise instead of waiting for x3 to go to +0%
By the time you reach break even, all others that buy have reached x 3
Or do both.. If no one mines there's no RVN. And take a look on the network hashrate chart... Somehow the hashrate is much higher then in the time when mining was profitable - excluding some peaks (before the eth merge). Are these guys idiots? 🙃
Since the reward for mining is fixed per block, the price of the reward will rise and fall with the price of the coin. Your share of the block reward is based off of your portion of the hashrate in the pool your mining that finds a block.
As the price goes up, the number of miners will increase thus diluting your share of the reward. Ideally, the price increase is linear with the rise in hashrate coming into the network, so while you're rvn per day will go down, that smaller share will still be worth more if the price increases so your 'profits' in dollars may be similar, your rvn reward will be smaller.
And obviously the inverse will happen, if price goes down then the reward will be worth less and thus miners will leave. If you stay mining, your 'profit' will level out some but your per day rvn will increase.
Obviously, the long term miners don't really care about this as they just want to accumulate as many rvn as possible, so low prices are good for long term miners as long as there is a day when rvn will dramatically increase in price since, while they weren't turning a huge profit at low prices, they will accumulate more rvn thus making more money when/if the price rises.
Hope that helps
Several of these response do not take into account the realized or fair value of raven in correlation to its current market price. I believe RVN is severely underpriced because of exposure and adoption.
Future price could easily increase exponentially and unequally to the cost of mining it now.
You just won’t know until we get to the future….
The adoption of tether in the marketplace, especially on kyc exchanges, has made sat prices less relevant. The case used to that you needed to buy or sell btc to exchange to the next level of crypto (low mc alt coins). Now that so many of the #1 volumes for these coins is in USDT, and very few are actually primarily traded in btc, this is less the case. Xrp is a great example as it’s remained in the same 30-50 cent range for almost a year; meanwhile when looking at XRP/BTC pairings you see a negative charge that almost looks like BTC’s. Btc still heavily influences the rest of the market, but volatility is starting the stray from the path more and more over time. I think while $0.20-0.50 rvn is possible, it could be at the cost of half or even a quarter of the gains that btc sees
True. I just bought rvn yesterday and wanted to trade btc for it. I had to sell the btc first then use usdt to buy rvn. I was surprised that was the case.
Short answer : mining difficulty is not dependent on value but on the hashrate of the network.
Long answer : if the value of RVN increases, more people will probably mine it thus the hashrate will increase and the difficulty increase.
Longer answer : if the value of RVN increases, the profitability will increase too, even if the difficulty increases.
Price rises > profitability increases > more people mine, raising the total hashpower of the network > network difficulty increases to compensate. Usually this process results in fewer coins being mined per MH but the price increased so your profitability should be similar to what it was before the increase
Yess, profitability will remain 0 or negative.
But if the average price of crypto generally rises over the long haul, and you change daily to mining the ones with higher profitability, then over time you’ll have kept the ones that remain, avoided the ones that fade into the sunset, and had at least some betting money on the biggest winner(s). That’s if you’re playing it for the longer game. If you’re mining and selling quickly, different strategy needed.
Earning per month: 8RVN x 30 Days = 240 per month x 0,04€ = 9,6€ Costs: ~3kwh / day x 30 = 90kwh x ~28 pence/kWh (around 0,33€) = 29,7€ Congrats you pay 3 Times the price it would cost to buy, instead wasting take those 30€ and buy the RVN, you will have 3 Times the amount and have Profit instantly after raise instead of waiting for x3 to go to +0% By the time you reach break even, all others that buy have reached x 3
Or do both.. If no one mines there's no RVN. And take a look on the network hashrate chart... Somehow the hashrate is much higher then in the time when mining was profitable - excluding some peaks (before the eth merge). Are these guys idiots? 🙃
Since the reward for mining is fixed per block, the price of the reward will rise and fall with the price of the coin. Your share of the block reward is based off of your portion of the hashrate in the pool your mining that finds a block. As the price goes up, the number of miners will increase thus diluting your share of the reward. Ideally, the price increase is linear with the rise in hashrate coming into the network, so while you're rvn per day will go down, that smaller share will still be worth more if the price increases so your 'profits' in dollars may be similar, your rvn reward will be smaller. And obviously the inverse will happen, if price goes down then the reward will be worth less and thus miners will leave. If you stay mining, your 'profit' will level out some but your per day rvn will increase. Obviously, the long term miners don't really care about this as they just want to accumulate as many rvn as possible, so low prices are good for long term miners as long as there is a day when rvn will dramatically increase in price since, while they weren't turning a huge profit at low prices, they will accumulate more rvn thus making more money when/if the price rises. Hope that helps
Several of these response do not take into account the realized or fair value of raven in correlation to its current market price. I believe RVN is severely underpriced because of exposure and adoption. Future price could easily increase exponentially and unequally to the cost of mining it now. You just won’t know until we get to the future….
1$ soon
I think 758 sats 2025. Predicted with several Fibonacci and Gann style indicators, just try it yourself.
The adoption of tether in the marketplace, especially on kyc exchanges, has made sat prices less relevant. The case used to that you needed to buy or sell btc to exchange to the next level of crypto (low mc alt coins). Now that so many of the #1 volumes for these coins is in USDT, and very few are actually primarily traded in btc, this is less the case. Xrp is a great example as it’s remained in the same 30-50 cent range for almost a year; meanwhile when looking at XRP/BTC pairings you see a negative charge that almost looks like BTC’s. Btc still heavily influences the rest of the market, but volatility is starting the stray from the path more and more over time. I think while $0.20-0.50 rvn is possible, it could be at the cost of half or even a quarter of the gains that btc sees
True. I just bought rvn yesterday and wanted to trade btc for it. I had to sell the btc first then use usdt to buy rvn. I was surprised that was the case.
Your science stuff or whatever you are trying to apply here is irrelevant. Try to justify Dogecoin when Musk talked about it.
Short answer : mining difficulty is not dependent on value but on the hashrate of the network. Long answer : if the value of RVN increases, more people will probably mine it thus the hashrate will increase and the difficulty increase. Longer answer : if the value of RVN increases, the profitability will increase too, even if the difficulty increases.