Re:Bitcoin's ASICBOOST Problem Explained [pdf]
by midmagico on Monday April 10, 2017 @12:36AM
(#14076051)
Your arithmetic is off. Revenue doesn't increase. Costs decrease. Effectively the increase in profit is similar, though, to your result. Just for different reasons.
Ignoring depreciation or hardware costs, the arithmetic is like this:
The closer to costs that revenue for non-AB mining is, the closer to infinity the comparative profit margin is.
That is, AB doesn't increase hashrate. (That would be a very, very much more complicated equation since the hashrate reward pie is essentially static.) All it does is decrease the amount of power required to do the same work.
Ignoring depreciation or hardware costs, the arithmetic is like this:
Pre-ASICBoost: Revenue: $1.02 Costs: $1.00 Profit: $0.02
Post-ASICBoost: Revenue: $1.02 Costs: $0.70 Profit: $0.32
The closer to costs that revenue for non-AB mining is, the closer to infinity the comparative profit margin is.
That is, AB doesn't increase hashrate. (That would be a very, very much more complicated equation since the hashrate reward pie is essentially static.) All it does is decrease the amount of power required to do the same work.