DeepOnion Mining with Nicehash: Expected vs. Actual Outcome

in #nicehash7 years ago (edited)

Recently I was interested in cloud mining and whether is profitable or not. So I decided to test it out with my current favorite project DeepOnion, which is a young and promising privacy coin.

It uses a x13 algorithm in combination with proof of stake, is mostly premined and many people say it's not profitable to mine it. Despite the bad forecast, I wanted more exact information. First of all I calculated my expected outcome. There are a few values that influence the mining reward. The main of them are the block reward, difficulty and the price of the hashing power. Taking them into account I have calculated a reward of about 15 $onions for a minimum 0.005 BTC nicehash order.

Block reward [onion]: 8 $onion
Difficulty: 115 441 (1.1510^5)
Difficulty2^32: 495 815 319 617 536 (4.96*10^14)
Price: 0.0004 BTC/GH/day

Expected reward: ~15 $onions

For further details about the calculations you can look them up in my previous post.
https://steemit.com/nicehash/@ra213/how-to-calculate-your-expected-outcome-for-nicehash-mining

Actually this was my second try to mine $onions. The first one was moderately successful, because I set up an order on a pool with only a few other miners. Compared to them my hashrate was many times higher and so I contributed to only two blocks which means my rewards depended mainly on luck. You can read about my first experience in this post.
https://steemit.com/deeponion/@ra213/my-first-cloud-mining-experience-with-deeponion

With the gained experience I thought the second try should be profitable. Luckily the price of the hashing power decreased in the meantime and I was able to buy some with a price of only 0.0002 BTC/GH/day, so only 50% of the previous order. My expected outcome should therefor double and be around 30 $onions.



Screenshot of the nicehash order

To prevent the same problems as with the previous order, I decided to switch to the community pool of DeepOnion (https://onionpool.youngwebsolutions.com), because there were many other miners with a decent hashrate. After a few start-up difficulties my order received hashing power from many miners and finished just in a few hours.



History chart of the nicehash order

After seeing that my order has finished, I immediately checked my earning on the community pool and was pleasantly surprised. I earned 30.42122232 $onions which is really close to the projected 30 $onions and with the current price I made about +20% compared to buying them on an exchange.

Excited about the results, I created another order on nicehash. Unfortunately the difficulty spiked at that time and on my third order I just received 22.940032 $onions for the same price. The following screenshot summarizes the three orders I created.



Nicehash orders overview

In conclusion if you constantly monitor you order and the difficulty of the network, you can mine profitable with nicehash. In total I had three orders and paid 0.015 BTC for 64.75 $onions. According to the current price of 0.00023669 BTC I made 0.0003 BTC profit.

I published this article also on the DeepOnion forum
https://deeponion.org/community/threads/deeponion-mining-with-nicehash-expected-vs-actual-outcome.32999/

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Great analysis man.
I always stayed away from mining $Onion due to high difficulty.
I would still buy it , since its extremely undervalued at the moment. But nice to see you profited around 0.0003 BTC. But that is quite small compared to time we invest checking hashrate.

Thanks for this article. Saved me tons of time figuring this out myself.