If you are mining Ethereum or Bitcoin, you may look at profitability from two perspectives. Profitability in satoshis and profitability in fiat currency (I will use USD as an example). Not all price movements are going to be profitable in both Satoshis and USD. And so, I will explain what market triggers you should take action on and which ones you can ignore as a miner.

Imagine you are using a GPU to mine Ethereum while immediately trading it for Bitcoin. You may think a quick disproportionate rise in Bitcoin is in your favor, it is not. A quick rise in BTC lowers your profitability and robs you of satoshis. The graph below will show you why this happens and also explain the results of the various market fluctuations. You can use this information to engage in trading with the proceeds from mining to increase profitability or you can use this information to gauge the profitability of your miners in real-time.

There are 4 market fluctuations or outcomes when mining Ethereum for Bitcoin. Bitcoin rising disproportionately to Ethereum. Ethereum rising disproportionately to Bitcoin. Both coins rising quickly at the same time, or both coins falling quickly at the same time.

There are three end-goals while mining. Some miners want as many satoshis as possible. Some miners want as much USD as possible. And some miners want Bitcoin’s value in fiat to be as high as possible. We will be looking at the market fluctuations and the effect on these end goals.

Quick Reference Guide – GPU Mining

PS = Profitability in Satoshis
PU = Profitability in USD
BBV = Bitcoin Bank Value

The 4 Types of Market Fluctuations

1. Bitcoin rising disproportionately to Ethereum
   Profitability in Satoshis is DOWN
   Profitability in USD is DOWN
   Bitcoin Bank Value is UP
2. Ethereum rising disproportionately to Bitcoin
   Profitability in Satoshis is UP
   Profitability in USD is UP
   Bitcoin Bank Value DOES NOT CHANGE
3. Bitcoin and Ether rise quickly
   Profitability in Satoshis DOES NOT CHANGE
   Profitability in USD is UP
   Bitcoin Bank Value is UP
4. Bitcoin and Ether fall quickly
   Profitability in Satoshis DOES NOT CHANGE
   Profitability in USD is DOWN
   Bitcoin Bank Value is DOWN