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When I review sites like fork.lol and they speak of Mining Profitability of BTC and BCH, how are these calculated? I am trying to figure out how mining profits change between these two coins and how someone determines which one is more profitable, and why the highest profitability switches between BTC and BCH?
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Source: fork.lol (PNG by me)
mining\space profitability$$\frac{\mathrm{BCH}}{\mathrm{BTC}}=\frac{\frac{(\mathrm {BCH\, block reward + estimated\, total\, transaction\, fees \, in \, a \, BCH \, block})\cdot (\mathrm {BCH\, exchange\, rate\, (in\, USD)})}{\mathrm {BCH\, block\, difficulty}}}{\frac{(\mathrm {BTC\, block reward + estimated\, total\, transaction\, fees \, in \, a \, BTC \, block})\cdot (\mathrm {BTC\, exchange\, rate\, (in\, USD)})}{\mathrm {BTC\, block\, difficulty}}}$$
Are the fees the per transactional cost of each transaction to fill the block ? How is the difficulty determined? Thanks for taking the time to explain this is much appreciated – Jcoin – 2017-11-17T18:08:04.527
Yes, average transaction fee * average number of transactions in a block. Bitcoin's difficulty algorithm is: https://bitcoin.stackexchange.com/questions/5838/how-is-difficulty-calculated while Bitcoin Cash' algorithm is not so simple: https://www.yours.org/content/deadalnix-s-difficulty-algorithm-explained-ac50eb2b1f16
Thanks so much , I will follow those links and take a look. I get the Macro of it know .. – Jcoin – 2017-11-19T20:29:34.267
Also, curious about this. – zero_cool – 2017-11-17T05:42:09.383