Cryptominers, hash rates, and timing - MAKE SMART INVESTMENTS

By b_eleven | Random Events and Cypto-related Entries | 15 Jul 2021

To one and all who come to bear witness, greetings!

Really though, Happy Wednesday, you’ve made it through half the week. Today I thought we’d take a quick trip through miners and hash rates – and why math is important!

I was talking to a dear friend who was itching to buy the absolute crappiest miner in RollerCoin (an online mining simulator, which means you don’t need a dedicated computer to mine here).

This miner is available for 2.6 RLT (Rollertoken, the in-game token, in which $1=1RLT) and provides you a hash rate of 1160 GH/S. I asked her – how long did she think it would take her to earn back the money spent on the miner? The response, oh I don’t know.

THAT’S THE WRONG ANSWER, LADY!

Real talk here folks: there is nothing wrong with investing in a miner to help you earn more in the long run. BUT, you really need to understand what your investment and commitment will mean.

So let’s start with this: What the heck is a hash rate?

This is the speed at which a miner/group of miners solves a block. It is represented and calculated as hash rate per second (H/s). Hash rates are measured in standard metric system prefixes and in time.

So that means:

MH/s = 1,000,000 H/s

GH/s = 1,000,000,000 H/s

TH/s = 1,000,000,000,000 H/s

PH/s = 1,000,000,000,000,000 H/s

EH/s = 1,000,000,000,000,000,000 H/s

ZH/s = 1,000,000,000,000,000,000 H/s

So what does that mean to you?

It means that when you purchase a miner in a game like RollerCoin that gives you 1,160 H/s you aren’t buying a lot.

For example, the below is a quick screen shot of my RollerCoin status at this exact moment:

That's a lot of "power" relative to a small miner like the below and yet all that only yields 0.000424 every ten minutes.

But, how did I prove it to her?

Let’s start with timing. Each mining opportunity and game offers blocks that complete at different intervals. For RollerCoin, it occurs every ten minutes (paying out in Rollertoken, Bitcoin, Ethereum, and/or Doge). So there are only 6 mining blocks in an hour. 144 in a day. Period.

Right, 144 in a day. Now, how much you make off a block mined also depends on amount of people mining the same block. But, off of tonight’s guestimate calculations, a miner of 1,160 H/s will earn you .000006 RLT every 10 minutes.

So math in public.

.000006 x 144 = .000864 RLT in a day.

To earn back the 2.6 RLT spent:

2.6 / .000864 = ~3009 days of mining

Or another way

2.6 / .000006 = ~433,333 blocks mined

3009 days to earn back the cheapest miner! So here’s what I encourage you to do: the math. Figure out what you can afford and how quickly you want to earn it back. Truthfully, the best deals we have seen on miners in that game have been during special events and holidays. So I’d recommend waiting till then to get it done.

Additionally, if you can get enough referrals working then they do the mining for you! Then maybe spending that on lesser quality miners wouldn’t be too bad. No one can tell you what to do. It’s all your decision.

So that’s a bit of the math. Make informed decisions folks. While I used RollerCoin as an example, the math will work if you apply the concepts to any other mining operation.