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The trouble of Scrypt mining industry

2014-9-19 20:46 | admin

Roundup:Abstract:Over the past one or two months,miningbase on the algorithm of Scrypthad mushroomed,Gridseed blade mining,Ajie 30M mining,Jingtianmining,SilverFishmining,Zeus mining etc.However,by the sales ...


Abstract:Over the past one or two months,miningbase on the algorithm of Scrypthad mushroomed,Gridseed blade mining,Ajie 30M mining,Jingtianmining,SilverFishmining,Zeus mining etc.However,by the sales record of CYBTC,it shows thatall of the Scryptalgorithm mining sold poor.

Over the past one or two months,mining base on the algorithm of Scrypthad mushroomed,Gridseed blade mining,Ajie 30M mining,Jingtianmining,SilverFish mining,Zeus miningect.However,by the sales record of CYBTC,it shows that all of the Scrypt algorithm mining sold poor. Mining industry which bases on Scryptalgorithmseems to being in trouble.In contrast, although in the past several months,the market ofBitcoinwas not good,but no matter how bad the situation,there were 1-2 mining with high cost-effective chased by the large number of miner.

This essay aims at discussing the reasons for the trouble of Scrypt mining industry.As for the solution which never mention in this essay because that I am totally just a spectator,and I never hold anyvirtual currencybased on Scrypt algorithm.

The trouble of Litecoin
The main trouble of Litecoin comes from the appearance of ASIC mining.
The Litecoin always preaches that it can resist the ASIC mining since it had beencreated.Now,this idea is wishful thinking. In theory, no algorithm can resist ASIC mining, the recent popular X11 algorithm also will not escape from the ASIC mining after all.

You can image when the Litecoinmining appeared,how disappointed the Litecoin fans would be who originally thoughtthe Litecoin can resist the ASIC mining.In March,when Gridseed blade mining preparedfor massive sales,there is a group calling itself LTCX11 organizationdecided toimplementfork hard to Litecoin,which has been using the X11 algorithm for avoiding ASIC mining in the new Litecoin.However,this plan was rejected by the Litecoin R & D team.Because fork hard is too dangerous.

Since then,the exchange rate between Litecoin and Bitcoin has begun to decline rapidly from 0.028 to 0.017. Obviously, Litecoin has lost a large number of fans.Sincemining is inevitable and Bitcoin looks more promising.Some Litecoinfans could be back to Bitcoin,other could be back to the virtual currency which bases on X11 algorithm,such as the popular Darkcoin.That’s whyduring the past two months, when theBitcoin raised, Litecoin didn’t change, but when Bitcoin declined, Litecoin also declined.It resulted from the willing buyers were less and less. 


Thetrouble of Dogecoin

Although, the Dogecoin and Litecoin use the same algorithm, but thetrouble of the Dogecoin and the Litecoinis quite different.The problem of Dogecoin is poortechnique.The marketing teamof Dogecoin is absolutely first-class, it is said that a lot offemale players have attracted and the community is very popular. There are various problems have existed since Dogecoin had been created, such as happened in February there was fork, which was not because of51% attack.In March,random block reward wascracked, partialMultipoolspeciallydig bigbonusblock;In May,the users’wallet onDogevault(an online walletservice provider) were stolenetc.


From theexamples of Dogecoin,we can draw the conclusion that virtual currency can be exuberant in a brief period by marketing,but not be forever. To maintain the stability of a virtual currency, have to rely on technology and Application.Even though there are many players of Dogecoin,but really few dare to invest all the wealth on Dogecoin because of its unreliable technique.But there are many Bitcoin fans arewilling to invest their full wealthonBitcoin.


Another defect of Dogecoin is not only the output has been "halved" too fast but also with 5% inflation.For example,when the Dogecoin output has been "halved"on April 28,instead of the price increased,the hashing power lost.Because Dogecoin is one of virtual currency bases on Scrypt algorithm,mineralways dig the currency with higher profit.If the output of Dogecoinhas been "halved"continuously,its hashing power will be too low to dare hold soon.As for the price of Dogecoin has been declined at least 90% from the beginning of this year.


Hashing powermonopoly

Since mid-April,when Gridseed blade mining which is the first Scrypt algorithm mining began its worldwide shipments, all the hashing power of Litecoin increased from 150G to300G.We don’t know whether miningmanufacturers have begun to mine before the delivery.We also have no idea about that how many graphics miners go to dig the virtual currency of X11 algorithm after the appearance of Gridseed blade mining.But certainly,the increasing 150G hashing power all from ASIC mining.Ifthe miningmanufacturers have begun to mine before the delivery and the loss of graphics miners, most of Litecoinhashing power should be come from the subsequentASIC mining.


However,due to the higher price of Gridseed blade mining and follow-up delivery of Scryptalgorithm mining which is low cost-effective,all the sales volume of Scryptalgorithm mining is not very good.Therefore,it makes sure that mining manufacturers hoard a lot of mining, they actually have already formed thecenter of hashing powermonopoly.This is not only for individual miners is very bad,but also lead toecosystemextremelyunhealthy. Once Litecoin become the game of few  people, the death date of Litecoin is not far away.


As a spectator, the view of mine maybe not comprehensive,but the Scrypt mining industry may really in trouble.How to get out of the trouble?I think,it time to consider for the community of Litecoin and Dogecoin.


Translated from:http://www.cybtc.com/article-1061-1.html




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