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Topic: [2018-10-10]Bitcoin Mining Profitability Diminishing in Spite of Record Revenues (Read 190 times)

legendary
Activity: 2170
Merit: 1427
oh this will be more of a big argument for certain cloud mining companies not making payments and according to such cloud mining company only if the price is $ 10,000 that will be profitable and make payments.
Even if the price goes up to $10,000 cloud mining services won't be going to pay you. If the price goes up, the difficulty goes up with it. People with cloud contracts are trapped if they can't sell them.

Just wait for the moment the block halving starts to kick in, it will allow cloud mining services to legally and provably pay people 50% less. It will also be the moment at which we'll see a large number of cloud mining services 'voluntarily' shut down because they can't swallow a 50% deduction in (for them nonexistent) mining rewards. In other words, they will run with people's money and there is nothing anyone can do about it.

the people who invested in these cloud mining companies should be forget their investments and seek to mine on their own
That's pretty pointless at current stage. People are far better off dollar cost averaging to catch the bottom and ride out the next bull run. It's just a matter of logical thinking. The price increases of crypto currencies have always greatly outperformed that what mining allows you to make.
full member
Activity: 490
Merit: 123
Basically this is just a logical concluion from the current price situation.
Most of the EU rigs has been already shut down because this is just not profitable any more, the only ones who are continuing to mine are those who have access to cheap electricity.
legendary
Activity: 3164
Merit: 1127
Leading Crypto Sports Betting & Casino Platform
well with bitcointalk losing 24% viewers in september continuing its decline since almost a year, we cannot expect bitcoin to continue to grow

I had never heard of such a thing, where did you see this statistic? I hope it's not some joke



oh this will be more of a big argument for certain cloud mining companies not making payments and according to such cloud mining company only if the price is $ 10,000 that will be profitable and make payments. well, the people who invested in these cloud mining companies should be forget their investments and seek to mine on their own
hero member
Activity: 1526
Merit: 596
Wouldn't this come across as fairly obvious? As prices of bitcoins drop and the markets not in a frenzy like it was last year, it should be clear that mining would not be as profitable as it was in the pinnacle of the bull market.

I honestly don't see reasons to be concerned at all by this matter.

Otherwise, you'd be saying that the 2014-15 bear market would have destroyed the entire mining industry as figment mentioned, but it clearly came back a lot stronger and hash rate continued to increase at rapid paces once the markets swung in the bullish side of the pendulum again. These are obvious cycles that denote nothing of importance in the long run imho.
sr. member
Activity: 1470
Merit: 325
A recent analysis of Bitcoin’s mining environment shows that its lucrativeness and profitability has reduced.

While Bitcoin is steering a clear course, its mining environment is passing through one of the most significant bear stretches in its entire history. The latest data from Diar, a blockchain technology industry analysis provider, disclosed that miners haven’t performed well in September which leads to questions about the impact it could cause on the future of Bitcoin (BTC).

Read the details in the article of Coinidol dot com, the world blockchain news outlet: https://coinidol.com/bitcoin-mining-profitability-diminishing/



well with bitcointalk losing 24% viewers in september continuing its decline since almost a year, we cannot expect bitcoin to continue to grow

https://www.similarweb.com/website/bitcointalk.org#overview

it is likely that the world will realise bitcoin not as a "technological revolution" but simply like a stupid mining cult.

regards
legendary
Activity: 1652
Merit: 1483
wasn't this expected at this point in the market cycle? I remember hearing about bloodbaths in mining in 2014 too. bitcoin mining is a long term investment---making major mining investments during a bear market should come with the expectation that your operation might be unprofitable for quite a while. not only are you competing against rising difficulty since well-capitalized miners are still long term bullish, but you're competing against time, hoping that the bearish market cycle plays out as soon as possible.

and as a general rule, as industries grow and more competitors enter the space, margins are expected to diminish. this is how corporate concentration happens. smaller operations can't survive in an environment of diminishing returns.
sr. member
Activity: 966
Merit: 264
A recent analysis of Bitcoin’s mining environment shows that its lucrativeness and profitability has reduced.

While Bitcoin is steering a clear course, its mining environment is passing through one of the most significant bear stretches in its entire history. The latest data from Diar, a blockchain technology industry analysis provider, disclosed that miners haven’t performed well in September which leads to questions about the impact it could cause on the future of Bitcoin (BTC).

Read the details in the article of Coinidol dot com, the world blockchain news outlet: https://coinidol.com/bitcoin-mining-profitability-diminishing/

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