Take into account for instance BTC and BCH (and probably BSV) which might be cash with vital market capitalization and share the identical algorithm (SHA-256). We observe:
(i) Massive miners (or mining swimming pools) divide their hash fee between BTC and BCH (and probably BSV).
(ii) Sometimes the mining profitability of BTC and BCH (and probably BSV) isn’t precisely the identical.
(iii) There are different SHA-256 cash with smaller market capitalization, however considerably greater mining profitability.
How do profit-seeking miners decide which cash to mine? How do they resolve what fraction of their hash fee to allocate to every coin? How do they decide when a coin is “too small to mine”?
What are the principle danger elements they keep in mind? Is the principle concern value volatility and the very fact mining reward can’t instantly be transformed to USD?
P.S. I perceive some hash fee isn’t allotted optimally, for instance due to miners not paying consideration or desirous to help a given community for private causes. I’m specializing in considerably skilled mining operations the place maximizing income is a precedence.
