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49250804 No.49250804 [Reply] [Original]

if more machines allows to mine more bitcoins and get more money, why don't miners buy machines exponentially so that they can mine even more
if they did we would know because there would be a mountain of machines visible from space

>> No.49250856

Yo I seen on YouTube these Chinese bitcoin minors literally have huge warehouses Dedicated to this

>> No.49250886

>>49250804
more computing power leads to a higher network difficulty which requires more powerful computers to keep making profit. this is expensive, you need new machines and more electricity to power those machines .this is why you can't mine BTC on your graphics card like you used to be able to.

>> No.49250904

>>49250804
link related
https://www.blockchain.com/charts/difficulty

>> No.49251033

its a scam. example, block reward is 1 btc. you are only miner so when it validates you get 1 btc. next block another miner joined with same computer as you. now at validation you receive .5 as does he. he then buys 8 more pcs and receives .9 while you .1

its goes back and forth like that until you have giant warehouses filled with computers trying to solve more useless math problems other giant warehouses for an ever decreasing reward.

>> No.49251097

there is this thing with cryptocurrencies called "coin emission"
let's say you want to emit 10 bitcoins in the next hour, if more powerful machines join the network, how would you still keep the emission at 10?
the solution bitcoin uses is to increase the difficulty of mining. Difficulty is a parameter built to keep emission from exploding. So as more machines join to mine, the difficulty of mining goes up to keep the emission at 10.

>> No.49251141

>>49251033
PoW isn't just solving useless math problems. If you understood how Bitcoin and specifically PoW operate you would know that.

>> No.49251161

>>49250886
This anon is right but misses the pool vs solo concept. With large mining operations you are most likely solo so the expected EV doesn't double because you bought 2x more machines due to the way difficulty works and the RNG factor. On top of the capital of increasing output exponentially at that level.

If you are a small fish in a pool adding a second asic will net 2x more profit depending on how the pool's payout structure is. Similar to how trading with size vs not size when entering/exiting positions.

>> No.49251599

>>49251161
then why doesn't everyone participate in one giant pool

>> No.49251971

>>49251599
More miners in a pool means more diluted rewards. This will only work if the miners want common prosperity but as you know man's greed knows no bounds.

>> No.49252465

>>49250804
The energy consumption would definitely destroy the planet. Staking on cometh swap is still a better option

>> No.49252814

>>49251971
This. Why share the rewards with everyone, when you can have it all for yourself? Also, mining pool's in essence fuck the "security" of a blockchain. In Satoshi's infinite wisdom, he never thought people would pool together resources in that regard. He assumed they'd all wanna compete for sole ownership.
I somewhat expect these larger solo miners to start their own pools and start eating smaller fish. Especially if we entering a multi-year bear market.

>> No.49254206

>>49251141
>PoW isn't just solving useless math problems.
Yes it is, if you understood how Bitcoin and specifically PoW operate you would know that.

>> No.49254313

>>49250804
I was skeptical at first, but then when you mentioned space I realized how much in common bitcoin has with the moonlanding. it's all fake isn't it? the fed controls all crypto, and mining is fake.