How Does the Price of the Underlying Cryptocurrency Influence a Pool’s Decision to Continue Operating despite High Difficulty?

The price of the cryptocurrency is a critical factor because it determines the fiat value of the block reward and transaction fees. If the price is high, it can offset the high difficulty, making mining profitable even with a lower block discovery rate.

If the price drops significantly, mining may become unprofitable, leading miners to leave the pool and potentially causing the pool operator to shut down due to insufficient revenue from fees.

How Does an Increase in Hash Rate Affect Mining Profitability?
How Does a pool’S’luck’Metric Influence a Miner’s Decision to Join?
How Does a pool’S Historical “luck” Percentage Influence a Miner’s Decision to Join?
How Do Hashrate Rental Markets Affect the Profitability of Legitimate Miners on Small Coins?
What Is the Economic Incentive for a Miner to Continue Operating at a Loss Immediately Following a Halving?
How Do the Transaction Fees in a Block Influence a Selfish Miner’s Decision to Reveal?
How Does Block Space Availability Directly Influence the Miner’s Zero-Fee Decision?
What Is ‘Adverse Selection’ and How Does It Relate to a Market Maker’s Profitability despite a High Fill Rate?