Topic: [2020-03-09] Bitcoin Hashrate, Mining Difficulty Hit New Highs Inefficient Miner (Read 121 times)
March 20, 2020, 10:21:22 AM
Mining was complicated even before this all happened. Now it is a really difficult " business"
March 20, 2020, 02:42:48 AM
When it comes to China, some old data show that price to mine 1 BTC is around $3000, and considering that we have such price during the 2018, and in the beginning of 2019, we can say that the current price still makes a profit for miners in China. Generally speaking, mining is still profitable and I believe it will be for the next 10+ years, at least for those who have money to invest and can wait few years for ROI.
Mining can be barely profitable if even if you can get very cheap electricity and do it at scale. It's very risky, with a long time for a ROI if the BTC price to mining difficulty ratio remains unchanged, and as everyone is looking to cut their operating costs to the minimum, the odds are against you. It's better deal for the ASIC manufacturer, but it's still a gamble.
But it's a temporary thing, and miners know it.
Bitcoin block reward is set to halve in less than two months. Expect longer transaction confirmation times until next retarget after the halving.
March 19, 2020, 09:27:31 AM
Generally speaking, mining is still profitable and I believe it will be for the next 10+ years, at least for those who have money to invest and can wait few years for ROI.
Mining will be profitable for as long as Bitcoin exists, because it was designed to be profitable - profit is the main incentive for mining, without it there would be no Bitcoin. If the price falls, miners would start leaving, difficulty would drop and a new equilibrium will be established. If difficulty gets too high, miners with more expensive electricity or less efficient ASICs will be forced to leave.
True, this is how it works with Bitcoin mining. However, not all people leave if mining is unprofitable for them at the moment. If the price is too low, as it is today, they keep mining and saving their BTC for later.
For example, currently mining with Antminer S17 is slightly unprofitable for those paying 0.1 USD and above per KWh:
Quote from: https://www.cryptocompare.com/mining/calculator/
But it's a temporary thing, and miners know it.
March 19, 2020, 06:37:48 AM
ASIC production also happened in China, so miners in China can avoid high transportation cost and export fees.
Of course there is truth in this, but consider that China is a huge country and that it does not make much difference if it is about transport within China's borders or if it is about neighboring countries that I mentioned in a previous post. Kyrgyzstan and Tajikistan have a land border with China, and I don't think transportation costs play a very big role here, although I do not know the information about export fees. I think it is good that there are alternatives, and that mining is decentralized in some way, because it is not good that there is so much power in only one country that can ban mining literally overnight if a some high-ranking member of the Communist Party finds it appropriate one day.
March 18, 2020, 11:59:08 PM
Generally speaking, mining is still profitable and I believe it will be for the next 10+ years, at least for those who have money to invest and can wait few years for ROI.
Mining will be profitable for as long as Bitcoin exists, because it was designed to be profitable - profit is the main incentive for mining, without it there would be no Bitcoin. If the price falls, miners would start leaving, difficulty would drop and a new equilibrium will be established. If difficulty gets too high, miners with more expensive electricity or less efficient ASICs will be forced to leave.
March 18, 2020, 09:43:28 AM
Are the miners creating profit on bitcoin's present price? They might not be and it is certain to be halved on May. How long does everyone speculate that this healthy hashrate can be maintained by the miners?
I would say there is still profit in mining, especially in countries where the price of electricity is very low. Some information says that Chinese miners are seriously considering moving in countries like Kazakhstan, Uzbekistan, Kyrgyzstan, and Tajikistan where price is $0.03 per kWh or less.
When it comes to China, some old data show that price to mine 1 BTC is around $3000, and considering that we have such price during the 2018, and in the beginning of 2019, we can say that the current price still makes a profit for miners in China. Generally speaking, mining is still profitable and I believe it will be for the next 10+ years, at least for those who have money to invest and can wait few years for ROI.
March 17, 2020, 08:45:11 PM
Are the miners creating profit on bitcoin's present price? They might not be and it is certain to be halved on May. How long does everyone speculate that this healthy hashrate can be maintained by the miners?
March 09, 2020, 10:18:42 PM
As Bitcoin (BTC) mining difficulty and hashrate hit new highs, less efficient miners, hurt by the virus outbreak, new-generation rigs, and falling BTC prices, may be out of business.
Coronavirus outbreak: back to proof of work
The number of infected people, and unfortunately casualties, from the novel COVID-19 virus across the world has been on the rise lately. However, it seems that the rise in China itself is slowing down. Crypto-mining publication Mining Update has reported that Chinese ASIC manufacturers and maintenance factories have gradually started reopening and returning to full operations. What this means is that Bitcoin miners can now more easily get their new mining equipment, but also fix those that have been malfunctioning.
Source.
Coronavirus outbreak: back to proof of work
The number of infected people, and unfortunately casualties, from the novel COVID-19 virus across the world has been on the rise lately. However, it seems that the rise in China itself is slowing down. Crypto-mining publication Mining Update has reported that Chinese ASIC manufacturers and maintenance factories have gradually started reopening and returning to full operations. What this means is that Bitcoin miners can now more easily get their new mining equipment, but also fix those that have been malfunctioning.
Source.
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