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I want to buy an ASIC miner and used a mining profitability calculator. I saw that they have a "difficulty factor". When does this difficulty factor rise and why? Can you predict when it will rise or fall?
Mining calculator difficulty factor
Answers
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The difficulty depends on the total amount of computational power in the network. Simply put, the more people (or hardware) is mining Bitcoin, the higher the difficulty becomes. Since there is no telling how fast and how much difficulty will rise in future, this is the speculation part in Bitcoin mining. There are people attempting to estimate how much the difficulty will rise based on pre-order queues and the increases in recent months, but they are just that: estimates.
Whether it's worth to join the mining process depends on the difficulty development, what you are investing and what you'll get in return for these investments. It's not a simple process, but there are some tools that will help you. One of the most complete ones is the mining calculator by TheGenesisBlock as it projects your ROI by considering month-to-month difficulty increase, initial investment, consumed power and the hashrate of your equipment.
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I created a mining profitability calculator, that predicts the difficulty factor.
That's an interesting and well made app you have there. – John T – 2014-02-26T07:47:01.630
3Promotional Question: Bill Koul is owner of the mentioned website. – Murch – 2013-09-04T22:51:28.913
I removed the link but will leave the question as it still seems like it could be useful to others. – D.H. - bitcoin.se – 2013-09-15T10:20:34.840