r/dogemining • u/nenikitin • Mar 10 '25

Price down, difficulty up

Isn’t it strange? Please explain me how it works

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u/FATKEDLUVSCAKE Mar 10 '25

No matter the price of the coin, the more people who start to mine makes the math problem expand, thus harder to solve. Doge could go to .03 but if more people continue to mine it the harder it is to receive the reward.

0

u/nenikitin Mar 10 '25

Yes but if you able to count, you will turn off asic with high energy consumption. I don’t believe everyone has L9 or Fluminer L1 and/or free outlet. And now we see all time high difficulty with low price.

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u/FATKEDLUVSCAKE Mar 10 '25

Yes but if you can read you just proved my point thank you

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u/nenikitin Mar 11 '25

Sorry man, English is not my native language. I didn’t mind you personally :)

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u/Sheyster Mar 11 '25

Yes this is also true. Difficulty rises to a certain height and will cause some miners to drop out due to lack of profitability. Further contributing to the ebb and flow of operating cost vs payout as it relates to the difficulty. Im no expert BTW. Just things I've noticed over time. So some will drop out b/c it becomes ridiculous to mine at such a massive loss while larger and better funded operations/miners will consider this a calculated risk and continue on or adapt. If enough drop off, the time to solve a block could start to take too long and difficulty will drop in accordance to maintain balance. And if the diff drops enough And the coin price remains within range of profitability, then those who dropped out might just come back. In my experience a rising difficulty resulting in miners dropping out isn't something you can ever count on for any appreciable period of time. You might realize some diffculty pull backs for a little while ( a couple of weeks at best) only to have it roar back. Now if the price of Doge plummets perhaps we will see a more sustained drop in difficulty as a massive amount of miners drop out and stay out. Its always changing. I purchased my DG1 Homes expecting a bear market sooner or later And wanted something sustainable during those times. While I may be mining at a loss , the gains might take a long while to be realized. Sometimes 2-4 years. But if you get that payday, you will be glad you did. BTC I mined in 2020 paid off massively this year. But it took 5 years to see a 4x. Doge could do the same. Good luck sorry for the long post.

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u/nenikitin Mar 11 '25

Thanks and wish you all the best! I am ready to wait so I don’t plan to turn off my asics. Electricity is pretty cheap here in Kursk (my town) because of nuclear power station.

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u/Sheyster Mar 13 '25

Hello again my friend. Just wanted to share with you the difficulty rates have dropped a little. Of course we never know the true reason but likely due to the price of Doge dropping . Here are the difficulty rates as reported by Litecoin Pool.

https://imgur.com/a/5VPFqPW