One more question, I have. As far as I can see this coin is pretty cheap according it's quality. Imagine the cmc will be tenfold in a year from now, does that affect the number of coins being mined at that moment?
Superb question
The value of the coin at any given time has no direct effect on the number of coins being mined. It may have an indirect effect if a high value coin attracts a lot of big miners. The number of coins mined per day depends entirely on the total mining hashrate being thrown at it, by careful design. See this brilliant illustration:-
http://starflakenights.net/crypto/blockreward/xmg.htmlHave a play around with it and you should soon see that currently, the ideal total mining hashrate to throw at the coin is around 22~23 to 32~33 Mh/s. This figure will increase slowly over time to accommodate growth. Around this figure you can expect the (proof-of-work) block rewards to peak at 50 XMG per block (roughly every three minutes or so).
The total mining pool hashrate is currently between 45 to 50 Mh/s most of the time, so the mining effort is clearly oversubscribed and average block rewards will be depressed as a result - almost to zero in some cases.
The joy of it is that the
calculated total mining hashrate, usually referred to as the nethashrate, is nowhere near as stable as the actual total mining hashrate. The XMG block reward algorithm does not measure the total mining hashrate directly, but estimates it from the time taken to mine previous blocks. This makes the
calculated nethashrate highly variable and even though the mining effort is oversubscribed, there are still occasional periods when the nethashrate "hits the sweet spot" around 22~23 to 32~33 Mh/s and we get higher value XMG block rewards as a result.
The downside of course is that we also get periods when the
calculated nethashrate is very much higher. Right this minute it is 95 Mh/s. Guess what the current block reward is
Ok I will tell you - it is 0.8 XMG - peanuts - dust when you get your share of it on the mining pool.
We cannot force miners to switch off, but we can take advantage of the good times by targeting the mining effort to those times - when the nethashrate "hits the sweet spot".
Did someone mention Sweet Spot?
http://xmg.makejar.com/Pure genius IMHO. Work smart - not hard. I have been banging on about this from the beginning
After studying
http://starflakenights.net/crypto/blockreward/xmg.html, I think I understand it, but I have some some questions/remarks left.
As far as I understand, MAGI implemented a blockreward that depends a lot on optimum hashrate used. Interesting to see is that, when optimum hashrate is used the blockreward is 50 XMG, when for instance the hashrate is double from optimum, the miners are punished very hard, there blockreward will only be around 2 XMG.
In case with all other coins blockrewards are fixed. When miners use double from optimum hashrate, they will only see their ROI ( rendement on investment) halved. Where in case of MAGI, the blockreward is divided by 10 or maybe 50. Please correct me if I am wrong.
Without having any technical skills, I try to overlook the whole system.
I try to think about the consequences of this system. Putting myself in a the spot of a miner first. A miner of course likes to mine the coin that brings him the best result. To estimate his ROI on MAGI, he cannot just calculate, because blockrewards differ a lot. He probably has to mine some period of time and then make his calculations. And then even this result gives him absolutely no indication regarding results in the future.
Looking through the eyes of someone who is interested in a 51% attack on MAGI. As far as I Always understood, a 51% is possible when someone someone has more than 50% of the hashes used on a network. Please, correct me if this is wrong. On first site a 51% attack on MAGI looks very simple, because of the variable blockrewards. When someone wants a 51% attack, he just puts in a lot of hashes. After some time the regular miners see that the hashrate is very high and the blockrewards are only peanuts. So a lot of miners will go away from the network and mine some other coin. Resulting in a situation where the guy who wants to do the 51% attack, has an even bigger percentage of the network.
But on the other side, I read MAGI is only cpu. Very to hard to believe, that when all coins, starting as cpu, never could stay only cpu, that MAGI will be able to stay purely cpu-mining. If this is the case, I can imagine a 51% attack will be extremely hard ( or better almost impossible) to do.
like, I said before, I am really impressed by this coin and most important I have no technical knowledge at all. So everything I said above are just things coming up in my mind and they could easily be total nonsense. The thing, I am interested in, is trying to understand how things work and what consequences they will have.
Hopefully someone has the time to educate me a bit on this. Thanks for your time.
