What does mining profit depend on?
April 1, 2022, 3:54 p.m.
Mining profitability depends on many market and technical factors. The bitcoin rate is just one of them.
Here are the main factors affecting income:
- Altcoin to bitcoin rate. Kryptex doesn't mine bitcoin directly, so income is influenced by the coin rate that your rig mines: Ethereum, Monero, Ravencoin, etc.
- The difficulty of mining. The more miners mine the coin, the higher the difficulty, the lower the reward for the block found. The difficulty is constantly changing and the profitability of mining changes with it.
- Block reward. In some coins, miners receive not only a fixed block reward but also a percentage of the commission built into this block. For example, when the number of transactions on Ethereum increases, the transaction fee goes up, and so the miners' profit do.
- Fiat exchange rates. For example, the displayed profit in dollars can be influenced by the dollar to bitcoin rate.
Kryptex does not manage profitability. It only depends on market factors and the technical principles of the coin you are mining. Some factors may cause income to rise, while others may cause fall.
Often, some factors compensate the influence of others. For example, if the Ethereum rate to Bitcoin falls by a third, but the block reward grows twice - the profitability will increase, despite the rate is going down.