Crypto Mining Difficulty: Dogecoin Currency

Basic Dogecoin Mining Tutorial

With bitcoin gaining worldwide momentum, some of the bitcoin alternatives are getting popular too. Dogecoin is one of the popular crypto currencies: its value has been multiplied since its release. It’s competitive to Litecoin, becoming one of the most used and bought digital currencies. Let’s take a look at how to mine Dogecoin and the mining difficulty of dogecoin:

1 Select a Dogecoin Mining Pool:

(1)          https://doge.nut2pools.com (it has strong operating power, however there’s firewall protection, you might need to change browser settings to visit the site)

(2)          https://www.dogepool.net

When selecting a Dogecoin mining pool, choose one with strong calculating power and not one of the smaller scale mining pools.

2 Register a Dogecoin Mining Pool Account, Register as a Worker:

(1)                At Dogepool.net, you’ll see “sign up” at the left side of the front page. Click it and the sign up process is pretty straight forward.

crypto mining difficulty dogecoin currency-01

(2) After logging in, click on “Add Worker” on the left to add a new miner.

crypto mining difficulty dogecoin currency-02

crypto mining difficulty dogecoin currency-02

(3) Fill in the miner’s name and password, click “Add New Worker” , you’ll see the new Dogecoin miner listed on the right. If you have multiple mining equipments, you can set up more than one Dogecoin miners to monitor the performance of each piece of equipment.

crypto mining difficulty dogecoin currency-03

crypto mining difficulty dogecoin currency-03

 

3 Download Dogecoin Mining Software CGMiner

You can easily download CGMiner by googling “CGMiner”, choose the version that’s suitable for your computer’s operating system.

4 Write a bath file for Dogecoin mining, key in the parameters needed for CGMiner’s operation.

For example, for the 2 recommended Dogecoin mining pool, we can write:

Change rem to be under cgminer’s root:

cd ..\miner-software\cgminer-3.1.0-windows

cgminer –scrypt -o

stratum+tcp://doge.nut2pools.com:5585 -u

coolbtc.doge1 -p x -o

stratum+tcp://www.dogepool.net:4444 -u

ebitoin.doge1 -p x -w 256 -I 12 -g 2 –thread-

concurrency 5120 –gpu-engine 1030  –gpu-

memclock 1200 –shaders 1024 –api-listen –api-

allow W:192.168.1/24,127.0.0.1

In the above command, we set up 2 Dogecoin mining pools. This is to prevent the problem of one of them become inaccessible; the system will automatically switch to another mining pool.

If you only use one mining pool, you can delete the “-o”

stratum+tcp://www.dogepool.net:4444 -u

ebitcoin.doge1 -p x

In addition, the string after “-u” is the miner’s name. Let’s say

Doge.nut2pools.com

Account name: coolbtc

Worker’s name: doge1

Dogepool.net

Account name: ebitcoin

Worker’s name: doge1

The information after “-p” is the worker’s password, not the password to log into the Dogecoin mining pool. In the example above the password is “x”.

Finally, the following parameters are for GPU of AMD Radeon 7850 model:

-W 256-I 12-g 2 – thread-concurrency 5120 – gpu-engine 1030 – gpu-memclock 1200 – shaders 1024 – api-listen – api-allow W: 192.168.1/24, 127.0.0.1

5 Double click the batch file, and start mining Dogecoin! Soon you’ll see the mining speed of the mining pools.

crypto mining difficulty dogecoin currency-04

6 Do not forget to set up your Dogecoin wallet to store the dogecoins. You’ll need to go to:

http://dogecoin.com/

to download a Dogecoin wallet. After installing it you’ll find the address under “Much Receive”.

crypto mining difficulty dogecoin currency-05

 

In your mining pool account, click on “Edit Account”, and fill in the information on the right.

crypto mining difficulty dogecoin currency-06

 Everything should be working now. With one AMD Radeon 7850 you can mine about 12000 dogecoins a day, not bad at all!

Why are Dogecoin’s Price and Mining Difficulty Increasing?

Dogecoin’s price has continued to increase due to its increasing popularity.

How do we make sure this is a continuing trend? As we know many crypto currencies have experienced high fluctuations in prices.

crypto mining difficulty dogecoin-07

 

One post from Reddit called “Of Wolves and Weasels” has discussed the reason why Dogecoin’s prices present downward trend. This is because there are multiple “multipools” mining Dogecoin, and exchange the mined dogecoins into bitcoins instantly, no matter how much the market price is.

The post has inspired me to write this article. Why would multiple dogecoin mining pools(multipool) mine and sell dogecoin and ignore the market prices? Aren’t they worried about losing money?

We can see Dogecoin’s blockchain information from http://dogechain.info/chain/Dogecoin. From the website you can see the following information:

1 The present blockchain of Dogecoin (Block)

2 The time that the blockchain is generated (Approx. Time)

3 The number of transactions of Dogecoin (Transactions)

4 The value of the blockchain’s output (Output Value)

5 The difficulty of mining dogecoin (Difficulty)

6 The present total output (Outstanding)

7 The average time of processing the blockchain (Average Time)

8 The average active time for each blockchain (Chain Age)

Below is a screenshot of the site, please take a look.

crypto mining difficulty dogecoin currency-08

 

From the graph above, we can see how Dogecoin’s price rises recently:

1.            The mining difficulty has increased significantly as more people join the Dogecoin mining pools.

2.            Dogecoin’s prices are continuing to rise.

crypto mining difficulty dogecoin-09

3.            Dogecoin’s increased mining difficulty has caused its price to rise as well.

4.            Posts from Reddit’s Of Wolves and Weasels have shown that many multipools have been mining dogecoin and then selling them immediately for bitcoin.

5.            We know that if any organization or person has 51% calculating power over the whole network, he can take control of the currency. There’s one mining pool already reaches 42% calculating power.

6.            To prevent this problem to happen, some mining pools have started mining other crypto currencies (including Dogecoin).

7.            Because some of the bitcoin mining pools started mining Dogecoin, this causes Dogecoin’s price and mining difficulty to increase as well. In addition, the costs of mining Dogecoin increase because of this.

8.            We can conclude that because dogecoin’s mining difficulty has increased, this raises Dogecoin’s price too.

As more people participate in mining Dogecoin, the difficulty will continue to rise. As the coin supply is fixed in a period of time, increase of miners will increase its difficulty of getting Dogecoin.

Leave a comment

Your email address will not be published.

*