As y’all know, I’ve been out of the mining business since ASICs came into LiteCoin, as difficulty skyrocketed from ~2,800 to now 9,000. The new ASICs are so fast that diff has had to adjust to keep the same pace of block discovery. BUT to buy an ASIC for a $thousand or three to mine today will net about one LTC a day with current diff, so it’s absolutely not worth it except on gigantic scale.
Well diff is a problem, as a large mining pool can move into a coin, and cause diff to spike to the point of unprofitability, and then the big miner leaves but the diff stays high for hundreds of blocks because of the way the system is designed. In response, there was the development of the ‘Kimoto Gravity Well‘, which adjusts diff every block, so the big guys come in, are instantly unprofitable and then generally leave… although only two coins implemented this, I suspect because most didn’t understand it.
Since then there have been a number of technical developments, including the Gravity Wave (enhanced KGW) and the X11 algorithm. X11 replaces the scrypt algo of LiteCoin and whatever algo BitCoin uses. (I’ve forgotten) X11 is designed from the ground-up to not work well on ASICs, so the little guy has a chance with CPU and GPU mining. And it’s a more efficient algo, using much less electricity than scrypt (LiteCoin, et al) to mine. DarkCoin has this, and as well is specifically designed for anonymity. Whenever a transaction is made, it is mixed up with numerous other transactions to greatly facilitate anonymity. (‘mixmaster’)
So DarkCoin, because of these improvements, has shot up from zero to over $15 in the past several weeks. A month or so ago I researched the only two coins using the Gravity Well (this being one), but I didn’t take any action, unfortunately. This week though a flaw was discovered and DarkCoin’s blockchain was forked to fix the problem. As a result there was a selloff and it’s now down around $9. Long story short, I’ve moved my LiteCoins from my internal wallet to the Cryptsy exchange, have exchanged my LTC for DarkCoins (while the price is depressed), and moved them into my internal DarkCoin wallet.
At this point I’ve dismantled my big gargling fire-breathing water-cooled miner and sold off the parts, but I may experiment with what I have, to mine DarkCoins. Maybe I should have kept a video card…
Maybe it’ll head back to $15 where it was a couple days ago. At least it has technical merit, as opposed to the stupid meme of DogeCoin… (“So coin. Very currency. Much profit. Wow.”, imitating a Japanese with poor command of English, but actually developed by two Aussies) Back when I was mining I mined hundreds of thousands of Doge, and immediately converted them to LiteCoin as Doge looked like BS. (even as it was fast and profitable to mine because it looked like BS) After a month or so, Doge shot up 10x in value.
Oh well, you can’t know.
Every transaction costs at Cryptsy. Because there is no direct conversion from LTC to DRK, today I had to LTC ==> BTC ==> DRK… each step of the way paying their fee. That is the reason I got away from the opportunistic pools which mine whatever’s most profitable at the moment, because by the time you convert all the various scamcoins to your chosen currency, it’s just not worth it. That’s why I’d settled on mining LTC, and I used a peer-to-peer pool to eliminate costs. But now I believe that DRK is best because of its advancements, and will stick with that for a while.,'after' => '') )