Hello Steemians,
Some days ago I wrote to Genesis Mining to get some information about my decreasing payouts which are starting to scare me. Not to mention I'm aware of the situation here with the PoW and PoS, I'm just trying to get some information
These are the messages:
My Initial Message
Hello there,
Due to the recent payouts I'm receiving with my Eth Hash contract I'm stating to feel scared about my ROI. I got my Eth Hash contract just 1 month ago and the decreasing payouts is huge. Is Genesis Mining aware of this situation and are there plans to switching to someting more profitable than it? Please this is important not only for me, for all the community.
Sincerely,
Carlos
GM Response
Hi Carlos,
Thank you for contacting us.
ETH has become more profitable (its value went up) in the past period, which gave the Miners a reason to mine (either cloud mining or mining at home with graphics cards). That then increased the difficulty as difficulty is based on the network hashrate increasing. https://etherscan.io/chart/difficulty
Please note that the website is an independent source of reference and not related to Genesis Mining in any way.
Increased difficulty means you get less for the same hashpower, over time. We do not control these coins so even for ourselves it is difficult to predict ROI on them as each day their variables always change.
Currently, Ethereum uses the Proof of Work concept, which means Ethereum is released gradually as a reward to miners that spent time and effort (and electricity) on finding blocks.
This mining consumes energy and the developers of Ethereum have already mentioned that at some point they might switch the algorithm to the Proof of Stake concept, which, simply put, gives rewards to people who hold on to their Ethereum instead of giving a reward to those that mine.
When that switch happens, mining Ethereum will no longer be possible. This might occur before the end of your Ethereum mining plan, but your hash rate will not be lost! Instead, we will reconfigure the underlying hardware to mine the most profitable coin, and from then on your hash rate will be mining that other coin.
Which coin will be the most profitable is impossible to say. We will decide on that when Ethereum switches from PoW to Pos.
Hope this was useful!
See my previous post
https://steemit.com/cryptocurrency/@carlosd15/time-for-buying-steem-has-gone-for-now
⚡c5Druj = 3% discount at https://www.genesis-mining.com/a/860545
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