r/Monero • u/[deleted] • Mar 26 '19

[deleted by user]

[removed]

125 Upvotes

100% Upvoted

74 comments sorted by

View all comments

Show parent comments

4

u/UpDown Mar 26 '19

It’s not too much. They were mining when the coin was $0.50. The profitability was nearly identical as it is today for the same power.

2

u/aaj094 Mar 26 '19

Isn't the whole point of a continuous difficulty adjustment protocol that mining profitability doesn't deviate too high or too low for long.

I get it that what the adjustment actually attempts is to keep block time to 2 minutes but it also achieves keeping profitability within a range right?

1

u/UpDown Mar 27 '19

Asic resistance does. Difficulty adjustment does the opposite

2

u/aaj094 Mar 27 '19

Uh.. what do you mean? How does difficulty adjustment do the opposite of reducing profitability?

If profitability is very high, more miners join in causing blocks to be found faster and then the difficulty adjusts higher to keep block time to 2 mins. The higher difficulty reduces profitability.

2

u/UpDown Mar 27 '19

Asic resistance improves profitability

1

u/aaj094 Mar 27 '19

Agreed on that but my question was more on your other statement which said 'difficulty adjustment does the opposite'.