How do you go about calculating or estimating your mining profits for Cryptonight coins? Honestly it was a mystery to me and I can’t take credit for the final simple formal. However much I’d like to credit the source s(he) prefers to remain anonymous in all things.
(price * block reward / difficulty) = profit per hash per secondAnonymous
This results in a tiny multiplier that can then be used with different hashrates and spans of time. Just multiply the result by how much hash per second you get on that algorithm and again by the duration of time you wish to estimate in seconds.
profit per hash per second * hashrate per second * duration in secondsAnonymous
At that point you can tweak the numbers to try and get better averages and estimates as I attempted to do getting the averages for values over hours, per day, week and month. No prediction of real future performance thought the main value for this data was in moment to moment mining choices. Using it you could automatically switch between mining many coins to maximize your potential profits if you were to dump all rewards immediately on the exchanges.
For each pass of calculations I would get the current price of BTC, LTC, XMR, DOGE and ETH from CoinMarketCap and use them for all values found in that cycle. Each value I would translate back into BTC to attempt tracking how much was on order for buy or sell on each exchange. I started off storing the order books but that quickly ballooned in size with no apparent value so I switched over to just storing the sum values of the buy and sell books.
This was part of a series: Ephemeral Projects as Performance Art