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Ethereum mining rig suggestions

Discussion in 'Blockchain & Cryptocurrency Mining' started by tarkadahl, Nov 10, 2020.

  1. Luke212

    Luke212 Member

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    supply+demand both are needed. there is a funny rock in my garden with count of 1, but noone will pay me $100,000 for it.

    someone wants BTC because they want to do something with it. I guess a large portion of people are buying and holding because they are trying to sell at a profit at some stage. So as soon as BTC finds its level, all these people move to other growth markets. So demand gradually drops until they are all gone and its just people doing work with BTC are creating demand.

    So long term unless the people doing work with BTC increases dramatically to replace the investors that leave, BTC should go down. i wonder how many people plan to do work with BTC vs now?
     
    Last edited: Mar 14, 2022
  2. Snoops

    Snoops Member

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    And that is the most important part, like pretty much all trading (fourex/stocks/commodity) people are betting on the theory that is has yet to find that "level". Given how few BTC can ever exist, that level could be many times what it is today OR it could of already peaked.
     
  3. illdrift

    illdrift Member

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    People often choose to use crypto, because it is a fairer system than existing dollar based systems that are fundamentally broken. Everything has flaws to varying degrees, so you have to choose which is the least flawed system you want to base your decision making on.

    It's true they have to sell their crypto to exchange it for some other goods. They're not necessarily selling it for dollars. A dollar is in effect a commodity, just like any crypto, gold, etc. It is impossible for an economy to have infinite growth (same goes for crypto). In the end all systems are zero sum. For example, no system can increase wealth for *insert%* for infinity. Instead they are increasing the supply of dollar bills, at an increasingly exponential rate.

    My opinion is that it was the Covid Pandemic that finally exposed how broken the dollar based system is, and set off the change in sentiment towards crypto. Markets didn't suddenly become more valuable after March 2020, they simply printed insane amounts of dollars and devalued what a dollar can purchase. If anything, every single business in existence should now be less profitable, because if all else were equal, they now have a load of safety overheads and similar inefficiencies to deal with.

    No-one can accurately predict a fair value of a given crypto, stock, or any other investment. People usually choose to store wealth in BTC/ETH, so that over any extended time period, they're on average less likely to lose purchasing power.
     
    Last edited: Mar 14, 2022
  4. Luke212

    Luke212 Member

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    um noone is storing wealth in BTC as an inflation hedge. You can just by inflation adjusted bonds for that, at zero risk.

    They are taking on risk for growth.

    or they are just dumb and heard its cool to store your wealth there - but their finance adviser should sort them out.
     
  5. Snoops

    Snoops Member

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    Like all investments, one needs to be diversify. Frankly I would be wary of anyone (including financial advisors) who advise not putting something into crypto...

    I wonder what you are trying to accomplish here Luke212? If you do not like crypto, that is fine, but to make statements e.g.
    when it is clear you have NFI what you are on about in a mining rig suggestion thread?? Suggest you find somewhere better to make stupid claims...
     
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  6. illdrift

    illdrift Member

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    Well, that's a deep rabbit hole well outside the scope of this thread regarding ethereum mining

    https://www.investopedia.com/news/should-you-buy-gold-or-bitcoin/#toc-gold-vs-bitcoin-an-overview
    Here is one such example, out of of numerous financial advisers, who supports investing into crypto. A hedge against inflation, is just one of the many factors supporting their investment allocations
    https://moneyfortherestofus.com/355-crazy-money/

    How are those bonds working out protecting against "only" an 8% CPI, or petrol prices doubling...
     
  7. apemann

    apemann Member

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    I did a little btc inflation hedge experiment
    2019
    1 btc = 5k
    Base common car Toyota camry 23900

    2022
    1 btc = 54k
    Base common car Toyota camry 30990

    Do it with a basket of goods lol, btc has done pretty well as an inflation hedge so far.

    (I don't own bitcoin just prefer eth :))

    But back to ethereum the merge will put huge upward pressure on demand (staking rewards no longer locked) and supply massively reduced
     
    Last edited: Mar 15, 2022
  8. apemann

    apemann Member

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    Kiln merge looks like its happening tomorrow

    https://blog.ethereum.org/2022/03/14/kiln-merge-testnet/

    Given that so much of the market is made up of Ethereum based erc20 tokens, tether, usdc, bnb, doge, shiba, polygon, uniswap, axie, sandbox etc etc I do wonder if the current price stability is because the market is waiting to see if its successful. Plus 10B in wrapped bitcoin.

    Ethereum currently uses the power of the UAE or the Netherlands to power the miners and thats getting switched off in a few weeks. Can't even comprehend turning off the power to Holland like flicking a switch ie the merge.

    It's pretty epic.

    If anyone wants to have a go at staking nows a great time to try , great way of moving from mining to staking rewards

    Here's one of mine on the kiln testnet

    https://beaconcha.in/validator/105903#deposits
     
    Last edited: Mar 15, 2022
  9. r3s

    r3s Member

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    Mining til the end but what are other people considering when that time comes, i think i should probably get something ready to switch to at this point :)

    I was going to look at raven and i built in sufficient power overhead to allow for that , i am really concerned about some people who run their ETH rigs right on the limits of the PSU's when they switch to more energy intensive algorithyms.

    Expecting an increase in crypto fire stories.
     
    romp likes this.
  10. apemann

    apemann Member

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    Still have about 1ghs on gaming rigs for the family running but will just stop mining after the merge.

    Even if 25% of the world's miners swap over if you split that 250,000gh across all the other protocols you are basically 10xing their compute power. It'll probably kill POW chains.
     
    dirkmirk likes this.
  11. romp

    romp Member

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    Have you had a look into Flux as yet? I was planning to go to Raven after Eth moves to proof of stake but I heard Flux may be even more profitable for some miners now, based on their GPU.
     
  12. r3s

    r3s Member

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    I am happy to mine whatever over winter, last winter the heater got turned on by the wife twice for around 30mins on really cold days and the rest the computers heated the house, so running them to accumulate anything and heat the house is far better way to spend money then on AC :)


    Nope , thats 1 on my list ( does the flux algorithm classify as LHR? )

    At this stage i might run my 3080 LHR card on raven and the rest can be whatever as they are all FHR
     
  13. lonewolf1983

    lonewolf1983 Member

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    Raven rewards halved recently so not really viable for me
    I have mined some flux already, and doing flux on nicehash (to get paid in BTC) - my 2080s/ti are more profitable on it than Eth anyway.

    I'll mine whatever is profitable, if nothing is then will likely store gear for a bit and/or sell off
     
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  14. apemann

    apemann Member

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    They are planning on putting up a live stream - to watch it succeed / or break

    should be tomorrow by the look of it.

    if it works Merge = 8-10 weeks?

    ill post a link to the stream when its released

    Screenshot 2022-03-15 121840.jpg
     
    Last edited: Mar 15, 2022
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  15. r3s

    r3s Member

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    Should be able to mine about 0.3ETH more at current rates which i am fine with holding til at least 10k so that will be $3k worth or more/less pending what happens.

    I have a bunch of other stuff set at a 3 year hold which is an eternity in crypto.
     
  16. apemann

    apemann Member

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    Can't believe they posted the live stream with 1.5hrs left :(

    It worked. Testnets next up.

    Just weeks to go now
     

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    Last edited: Mar 16, 2022
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  17. grrrr

    grrrr Member

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    I am a crypto noob that just looked up Proof of Work vs Proof of Stake.

    Does anyone else think it makes more sense to the average joe for people to be investing in a virtual 'metal' (resource) that is virtually 'mined' rather than investing in something where, "the bigger your account is, the more chances you have to win"?

    Maybe it just comes back to what luke said about the crypto currency having a purpose rather than just a crazy-investment-opportunity.
     
  18. illdrift

    illdrift Member

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    I think the POS argument is essentially, if you narrow down the theory of mining to its fundamental principle, it is a proof of resource expenditure.

    Bitcoin took this fundamental theory out to such a wild extreme, that you get to see all these external issues forming around such a simple rule. That the lowest - accountable to the entity - input cost per hash wins.

    This leads to centralized power, in that the larger your scale, the more efficient your advantage is. Now it`s getting to the point that you need priority access to silicon manufacturing fabs to maintain their competitive advantage.

    So the argument for ETH staking has become, if you compare the fundamental principles of both approaches, it is that those capable of expending the most resources win. It is inefficient for the smaller guys to try and compete against the big guys. We can remove a lot of this in-the-end pointless POW system of proving you have resources, by moving to a staking system. Where the higher the resources you have, the proportionally more rewards you get. You could even argue a staking system is fairer, since there is less of an advantage with economies of scale.

    edit: I can see how I worded this poorly, i've tried to rephrase it
     
    Last edited: Mar 16, 2022
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  19. apemann

    apemann Member

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    I'm a bit confused by this response

    Ethereum Staking rewards are distributed evenly no matter how much you stake. The current income for a validator is 0.0002eth per attestation, about 0.00377 per day. If I double triple 1000x the investment/number of validators, it doesn't change the return?

    Proposals and sync committe bonuses are randomised, 1 validator is 1 validator with an equal random chance.

    Having more has zero impact on the average return, the Apr stays the same?
     
    illdrift likes this.
  20. Luke212

    Luke212 Member

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    POW and POS are just ways to make it expensive to cheat. Neither is more or less sensical and has nothing to do with the actual transactional layer that people are using to do business.

    you are paid per validator. so if you have 10 validators you make 10x.

    also people are sharing validators so you can invest $100 rather than thousands to get on board.
     
    Last edited: Mar 16, 2022

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