Why Dogecoin DOGE Mining Is Dead

I am a new shibe. And I see many comments here which say that doge mining is dead. Can somebody explain it to me in detail? And if mining is dead.

Dogecoin is dead. What killed Dogecoin is the same thing that’s killing Bitcoin — At the heart of “cryptocurrencies” is the crypto, a difficult mathematical problem called a hash function. Hash functions take an input, and transforms it into a unique output of fixed length. Even changing the input minutely, should alter the output greatly, meaning it is extremely difficult to reverse the operation, and thereby find the input. Cryptocurrencies require “miners” or people who’ve donated computing power the network. When a transaction is made, it’s recorded in a public ledger called a blockchain.

Miners compete to be the first to solve the mathematical problem, and the winner gets a coin and a small transaction fee for their work. This is supposed to decentralize the network, and make it impossible for any one group to get control of the entire network. The Bitcoin protocol is built to automatically make the mathematical problem more difficult to solve every 2 weeks or to keep up with hardware advances or if the network gets too powerful.

So while Mom’s desktop used to get a Bitcoin an hour in 2008, you’ll now be more likely to get one per decade, if you’re lucky. Bitcoins use the SHA-256 algorithm, while Dogecoin and Litecoin use scrypt. This difference is important. Then ASICs appeared on the market. ASICs or Application Specific Integrated Circuits are highly specialized circuits. LBRY Credits LBC Mining Future. They can do one task, and one task only, but because they’re optimized for that task, they’re extremely good at it. ASICs developed for the express purpose of solving the SHA-256 hashes can easily outclass any conventional computer.

Regular people are now sidelined by huge mining pools, massive numbers of ASICs hashing at a colossal pace, using huge amounts of electricity. This places the blockchain in the hands of a few rich individuals who can afford to deploy these clusters. It’s gotten so bad, the Bitcoin or the difference between what miners gain from transaction fees processing the public ledger and mined Bitcoins from the estimated cost of hardware and electricity currently stands at -583%. For every $1 a Bitcoin miner earns, he loses around $6 in hardware and electricity costs, in July he could stand to earn $0.10, that was 5 months ago. Dogecoin and Litecoin use scrypt, which is an algorithm developed to use a lot of memory, and is supposed to make custom ASIC hardware too costly to produce.

Theoretically that should avoid the ASIC arms race that has now made Bitcoin mining impossible for normal people, decentralize the network, and avoid any one group from taking over. Now UK based Alpha Technologies says they’ve developed and are selling the world’s first ASIC scrypt miner. The popularity of Dogecoin is its downfall. All of those people gleefully mining dogecoins on their PCs are screwed. The Winkelvii will soon own a warehouse in Hong Kong filled with these ASICs, hashing at astronomical rates, gaining control over the network, and burning even more electricity to math at a meme.

Such futility. PS: All your Dogecoins were probably just anyway. Alpha Technologies is a scam.

ASIC's wont' be on the market for scrypt coins anytime soon. If you know something different then you should include your sources in the above written post. Additionally, you appear to have a chip on your shoulder against Dogecoin. The title of your post summarizes your bias, but there is also the conclusion statement where you state that 'all your Dogecoins were probably just stolen anyway'. You come across as an ill informed and bitter person. Try not to be so miserable in life.

Happy New Year. The numbers for the ASICs do not add up. You get an ASIC with 5000 kHash (5 MHash) for rougly 1650€.

A typical graphics card now runs between 350 and 750 KHash. The best case scenario is that you can today build a rig with 7 cards at 750 kHash with the same amount of money (rough numbers). Also they will deliver in Q2 or Q3 probably. Did I mention it's fun to build stuff and not buy ready plug 'n play shit.

LTC: LWfi3sWpuo8UuTX7C6NuHugcG4RcMiZnLi DOGE: DMcBKabyYmdQ3vKv37qb9oFY9ThFZGJqCH TIPS: EQbGcvBv13zeezvVRSiTCTryQU9qcfEU8g. This article makes absolutely no sense. Did ASIC's kill bitcoin? Apparently not. Because there is virtually no correlation between ASIC development and bitcoin price. ASICs affect mining profitabilty.

Profitability and price are disconnected, as we see with bitcoin pricing. Bitcoin mining profitability fell considerably, yes, but did the bitcoin price fall with it? No dumbass, it went up dramatically. And this line: 'Now UK based Alpha Technologies says they’ve developed and are selling the world’s first ASIC scrypt miner.' Alpha Tech is selling vaporware, they don't claim to have finished products. They themselves admit they won't be able to ship anything until 2nd or 3rd quarter 2014 at the earliest, and they can't even show a video demo of a product. Six to eight months from now is an eternity in a market like this.

So the Net Present Value (NPV) of the products Alpha Tech MAY ship someday in the future approximately zero. And this comment 'The popularity of Dogecoin is its downfall.' LOL Let's see yes, based on that logic, the US dollar is quite popular therefore it's worthless.

In fact the opposite is true. The more popular a currency is, the greater the demand, the greater the price increase, hence, the doge is going to the moon. Are you associated with Alpha Technologies? I ask because seriously you are really clueless about both general economics and crypto currencies. If you set up a dogecoin wallet let me know and I'll send you some dogecoins so that when it goes to the moon, you'll still feel stupid for writing this but at least you'll be able to ride the doge rocketship to the moon with the rest of us. AlphaCoin's mining rig is very interesting and credible.

The stats and their partners add up (even if it does prove to be a scam) If anything should reassure people GPU mining of scrypt coins will be around for quite a while yet. Delivery time is scheduled Q2 to Q3, so it doesn't exist yet, they are looking for £350 deposits to fund development by an Indian engineering firm who specialise in FPGA devices.. It will be based on a FOGA (not an ASIC) although FPGA can be considered a proof of concept for an future ASIC design. Performance will be 5MH/s, at a cost of £1350+VAT+Delivery. I was lucky enough in Decemeber to buy 3 x AMD HD 7990 GPU's for £750 plus VAT which deliver 4MH/s The 3 GPU's have a combined memory of 18GB Iand I suspect that memory is one of the main things limiting their FPGA miner to 5MH/s, Sxrypt mining is memory intensive.

At todays prices in the UK it would cost around £2100 + VAT to build 2 rigs with a combined hash rate of over 5MH/s (using 6 x AMD 290X GPU's and by Q3 this price will have come down. If scrypt difficulty rates follows Bitcoin then 90% of the profit from a rig is mined in the first 6 months. So it is likely to be much more probably more profitable to build one of these rigs now with the £1350 and mine at a considerably lower difficult rate than wait up to 9 months. It is debatable these FPGA miners will ever pay for themsleves. The only impressive statistic about this FPGA miner is the power consumption, 100W compared to maybe up to 2000W for the GPU equivalent. So my advice now in Jan 2014 is to build a rig of your own now with the money, all these FPGA miners will do is cause you to stop minining a little earlier, but only after you got more than 90% of the profit out of your rig anyway.

This advice will change when these FPGA devices are close to launch, but they are not going to eliminate GPU mining this year They will never have the massive performance advantage over GPU's that SHA256 ASICS do with Bitcoin. The only clear perfomance advantage I see is in power consumption, but I am no engineer and don't know how credible the figure of 100W for 5MH/s is. The other cliam that ASSICS will deystroy Dogecoin has no bearing on reality. Bitcoin is only profitable to mine via ASIC now, and it's price is still rising, heading back to $1,000 at the moment after the fall due to the setback in China.

MAybe the opposite happens, when perople can't make enough coins on their PC's they buy them instead? There are compelling arguments for a cryptocurrency, not subject to QE, not requiring overseas transfers go through SWIFT in the US, take days and and have costs of several 10's of dollars, not subjet to the credit and debit fcard transaction costs (Tax imo) that visa and mastercard levy. There is no case for unlimited crptocurrencies however. Most will die, only some will make the transition to a currency you can easily buy goods and services with. Will dogecoin be one, I don't know. Larger number of coins and faster confirmations are the 2 compelling arguments over Bitcoin.

Bitcoin is the credible grandaddy, but for buying coffee in starbucks, it has to be a faster, more numerous currency. How many people can conver.00003124btc or 3124 satoris to their local currency and know if it is enough to buy coffee. Litecoin LTC Mining Device. There are no asics for DOGE (SCRYPT) at the moment so they can't be responsible for the death of doge and they certainly aren't for any problem bitcoin might have, how the heck did you came up with this bullshit? 'The Bitcoin protocol is built to automatically make the mathematical problem more difficult to solve every 2 weeks' No, just no 'massive numbers of ASICs hashing at a colossal pace, using huge amounts of electricity' ASICs are more efficient, they use less power, what the heck are you smoking? ' For every $1 a Bitcoin miner earns, he loses around $6 in hardware and electricity costs, in July he could stand to earn $0.10, that was 5 months ago' Very rarely people mine at a loss, just know that 'PS: All your Dogecoins were probably just stolen anyway.' Shitty online wallet gets hacked and 12000 USD in DOGE are stolen, when doge has 6 MILLION DOLLARS of market cap, but ALL the dogecoins are stolen awww go f**k yourself.

** Why Dogecoin Is A Digital Diamond In The Rough** • Dogecoin has the second biggest community under Bitcoin. And they are really positive and friendly and that adds much quality and value. This could actually start something viral. • They give back to the community in charity events.

• Dogecoin and Litecoin use the same algorithm called Scrypt which secures the network. Dogecoin has an extreme advantage that anyone mining one currency on the Scrypt algorithm can also mine Dogecoin. What that means is everyone mining Litecoin can mine Dogecoin which results in an added payout. Because of this Dogecoin has all the mining power of Litecoin.

Thus Dogecoin's network is more secure than Litecoin's. • Dogecoins capacity is 2.5 times greater than Litecoin Dogecoins block size occurs every minute where Litecoins is every 2.5 minutes. Which makes the speed of the Dogecoin transactions much faster than Litecoin's 'Lightning Network'. • Dogecoin has passed the test of time as it has been around for 2 years. • Inflation less than 5% a year. 7.Market Cap 25 million possible 1 billion. Litecoin is currently 150 million.

• Manageable downside risk. • Upside potential far outweighs its's downside. • Dogecoin is only $250 per million shares. If you are looking for a million dollar score this could be your racehorse. In summary From the looks of it, Doge is the most active and decentralized of all the alt coins, which are needed because of the possible issues with Bitcoin. Right now, the best reason for using Doge over Bitcoin is that Bitcoin transactions can take a long time and cost up to a dollar for just one transaction, while Doge transactions cost only 1 Doge and are 1.5 times faster than Litecoin. It seems that Doge is the one that is best positioned to be accepted by the marketplace as a titan of the crypto world, due to these really good fundamentals.

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