Topic: Are you doing this as a Bitcoin miner also? (Read 392 times)

Bitcoin mining is like, when more people mine, the higher the difficulty and opposite. So, during the bitcoin mining, if a lot of people shut down their miners, difficulty will decrease and it will be easier for the rest miners to get reward.
[/quote]

You are right on this point, its mining difficulty is adjusted to every 2016 block if I am not mistaken, and it is calculated according to the total hash rate of the network, which becomes the amount of computing power using mining.

So if there is a reduction in difficulty, it becomes easier for miners to get block and rewards. but it is important to remember that the rewards for mining bitcoin are divided in half or what is called every 4 years.

I have a private house in the village where I can turn off mining if it is not profitable. When you rent space for a container with a capacity of 0.3-1 megawatt per hour or more, you make an advance payment for electricity and for rent and security.  For the miner, disabling the container 100% threatens with even greater losses.

So, this is what happens behind the scenes: When bitcoin halving happens, reward gets divided by two, i.e. one day you were getting $1000, now you get $500. Bitcoin price doesn't increase or doubles overnight after halving, it's still a slow process. So, your miner, that was (barely) generating profit when reward was X, now, since the reward is X/2, it can't generate profit, it consumes electricity and your revenue becomes negative. During this time, some people sell their old mining equipments to collect money for new one and some people want to sell them as soon as possible. When this happens, people like the one you described above, takes an advantage of the market and buys old bitcoin miners in discount. Then, when prices increases, they start mining with these miners and generate some profit or some of them even resell them before the end of bull market.

Bitcoin mining is like, when more people mine, the higher the difficulty and opposite. So, during the bitcoin mining, if a lot of people shut down their miners, difficulty will decrease and it will be easier for the rest miners to get reward.

It is true that mining difficulty is not dependent on the market price of BTC but the price of BTC has effect on the miner.  Being in the bear market and bitcoin price lower means mining isn't that much profitable making some miners to turn off their mining rig.  This will result in lower hashrate, thus the difficulty will adjust and be reduced.

Miners who are in the higher electricity charges will more likely to turn off their miners if BTC price is too low to compensate for their activities.  They will rejoin the mining activities once Bitcoin price increase and the price is enough to have profit.

Mining difficulty does not depend on the price of BTC or the market situation. Mining difficulty depends on the networks hashrate, that is why it increases when the hashrate is high, and reduces when the hashrate is low, and it is automatically adjusted after every 2,016 mined blocks. Mining farms mostly shut down when they are not making revenue, as a miner you can make revenue in any market situation, bull or bear.

Mining of bitcoin 24hrs is the best for miners and mining is more profitable during the bear market because any bitcoin that is mined in that period will have a significant value after some period of time. As for those miners that was mentioned by OP,maybe that is their own strategy on how to make profit for them in short term. If all miners worldwide behaves like this it means that bitcoin will have been dead by now. In business everyone has its own strategy he uses to gain profit from the industry due to their own understanding.

I think its better to start mining Bitcoin when the price is low, because the mining difficulty will be lower than if we are in a bull market, some mining farms shut down when the bear market began because they can't keep up with the grid power bills,.

If you can keep paying your Grid bills the best time is in a bear market, the challenge there is after mining your Bitcoin every day you need to keep holding them, once a bull market starts many farms will come back online and the difficulty will start climbing up.

Therefore, it would be better to sell Asic miners when the Bull run is over, right? because of course bitcoin will fall again little by little. But I'm still not sure about what I'm saying, because I'm still a little confused.

         Or if I sell the asic miner during the bear market, I will lose because I can only sell it at a low price, so it is better to do mining during the bear market, so that all the bitcoins I can save back to bull run is sure to grow or I will have a good income, am right?

If you already have your mining gears and have been running your farm for a long time before the pump to $100k, then it is a good time for that miner because the block reward will now be worth more than it was when you mined in the bear market. But it is not a good time for a miner who wants to start from scratch, buying gears will be more expensive then, and before you begin to make returns the price of BTC may possibly have plunged, which means it will take a longer time for you to make revenue on what you invested in gears, electricity and other stuffs during the bull run.
BTC miners have to use part of their revenue to maintain their farm, pay for electricity and other things, they may be less inclined to holding BTC's that a regular investor with no mining farm or equipments to maintain.

It is more profitable to mine bitcoins when the price of bitcoins is relatively low because mining bitcoins when the price of bitcoins is relatively low, if you hold those bitcoins for a while, there is a possibility of earning a lot of profit from it. The main purpose of Bitcoin mining is to mine and sell Bitcoins when the market is going up a bit. If those who do bitcoin mining hold their bitcoins for a long time after mining then their bitcoin mining will be more profitable.

That does not seem to be properly calculated plan? How can someone profit with the repetitive buying and selling of the ASICS. The price is always changing for the devices and it's tedious job, since you do not even recover the investment that has been done on the  machines and you would end up selling them in the losses. Something really does not add up here and perhaps such miners are short term gainers. May be they can turn it off, let the bitcoin price go boom and then fire up the machines again, that might add up something. However, as far as I have played around the BTC mining profit calculator, the picture is entirely different. People are literally requiring the miners to work day and night for straight 2-3 years to have ROI + some good profits. Definitely not sure how they are going with it.

So that means if for example the value of Bitcoin becomes 100k$ or more by next year or after bitcoin halving or during halving it is not a good opportunity to mine Bitcoin in reality. Although it favors those who bought bitcoin for less than 100k$.

      So it's better to mine in these times when we're still in a bear market because it's still far from 100k$ for every Bitcoin to happen.
It turns out that rich people who are open-minded in believing in Bitcoin are really an advantage

The best time to be mining BTC is during a side-way market, the bull is the worst, and the bear is just in the middle, the reason is, during a bear market buying BTC directly outperforms mining, think of someone who bought 1 BTC a few months ago for 17k, and someone who bought mining gears instead, the one who bought BTC has nearly doubled his investment while the other person is not even halfway through to ROI.

When the markets aren't doing much like they have been in the past couple of months, mining is best, if you bought BTC a few months ago at 25-28k then you had no real gains as the price has been in the same range for months if you bought miners instead you would be 20-30% into ROI.

Of course, it's almost impossible to time the market, you will need tons of luck and experience to get in at the right time whether it's buying BTC or mining gear.

If people wouldn't be mining in a bear market then bitcoin would have stopped existing a long time ago, after the bear market in 2013, 2017 or the last one. Where did you even get this idea from? Does this look like miners stopped mining?
https://bitinfocharts.com/comparison/bitcoin-hashrate.html#3y

Because some people invested in gear at the wrong time and need to shut down when the revenue is lower it doensn't mean it's a trend, it's simply economics, the ones doing stupid investments are paying the price.


Lol, no!
Bear markets are when you buy gear as the prices go down exponentially.
A s19 used to cost 7k in 2021, now you can get it go $1k.


No! Miners stop mining when the revenue is lower than the costs, a bear market can trigger this but even prolonged periods of up and downs can do the same, rising energy bills can do this also, in my case for example where I downsized my mini farm because my profits were dust.
A bear market can be the trigger but at the same time better prices don't always mean better revenue, 2020 or 2023, 10 or 27k now, and the income per th/s is still 8 cents in both cases.

Such activities can be done when you live in a city or area where there are a lot of miners. In Russia, for example, these are Irkutsk and the Irkutsk region, and due to cheap electricity, less than 2 cents is mined by everyone who can buy equipment. In other regions, there is not much demand for mining equipment.

It is difficult to sell ASICs on the market, and the price of ASICs depends on the price of bitcoin. I would then trade bitcoin because it is easier to buy and sell. Miners usually have electricity consumption contracts, and if they do not consume electricity, then their tariff increases.

These guys are short term profit takers and the bull season is the appropriate time for them to mine because of the price of Bitcoin during this period. Whatever Bitcoin they are able to mine they would still realize some good profit, and they would sell their equipment afterward when it's bearish and wait for another bull.

But going by the OP's explanation. I think the best time to buy the ASIC miners should be in the bear season since there would be many short term miners cashing on their investment and selling their facilities.

Everyone has their method of doing business and getting their gain. If they are mining only in the bull market and sell off their ASIC mining equipment then that how they feel like to do. But normally it is the bear markets that are very good to mine and when bitcoin goes up they can sell it with the higher price and buy more machine. But this one your state guys decide to mine only on the bull market. Are you sure confirmed this story from them well? Because the things is not clear to hear.

In my opinion other miners are actually doing this here in the crypto space. Apparently, this is a technique or strategy they call Bitcoin mining in bear markets. The idea is to sell the Asic miners at a low price and then sell them when it's time for the bull market with a layer or profit, this is probably the strategy they are doing.

       Also, the advantage of this method is that miners who love Asic can buy cheap during a bear market, or they can sell Asic miners at a high price when the value of Bitcoin increases.

Yeah there is something to be done in that sense, as you say OP.

If you, for example, bought ASICs in 2018-2019, ran them and they were already profitable, you would have made a nice profit in 2020-2021 by reselling them.
As their price is more or less correlated to the price of BTC, and therefore to the hype generated on mining, there is a chance to make a profit.

However, if you have large quantities of ASICs, if they run stably, your infrastructure is done and clean, and your electricity is cheap, it's a bit of a gamble.
Why not just let them run? They're already profitable.
Why would you want to go through the supply difficulties, the waiting time, the import costs and difficulties again?

Especially since you have no real guarantee that the price of ASICs will drop again and that you will be able to buy them cheaper. Even if bear markets always come after bulls, there is no guarantee that you will be able to find good ASICs at good prices after you sell yours.

Personally I keep everything, as long as my electricity rate allows it, I even leave old S9s running. At worst, I let them run solo like a lottery ticket, but I can't see myself bothering to ship and manage the resale of dozens of ASICs, with all the potential problems that could cause, when they are already profitable.

I think the strategy that you mentioned is a common practice among some cryptocurrency miners. By buying ASIC miner after a Bitcoin halving or when the market is in a bearish trend, miners can obtain mining equipment at a lower cost, while also benefiting from lower competition in the mining space. They then use the miners during the bullish market to generate profits and sell them when the market turns bearish, potentially making a profit from the sale of the ASICs.

As for your advice to keep mining and store Bitcoin during a bear market, that can also be a sound strategy, as it allows miners to accumulate Bitcoin at lower cost, potentially increasing profits in the long run. the choice of strategy will depend on a miner's individual risk tolerance, financial situation, and market analysis.

Those people are firm believers of short term profits. In bull markets when prices are going higher they buy the miners and they will buy when prices of Bitcoin go high and difficulty get a little low. Their main goal is to cover up their initial cost during those times and earn as much profit as possible during the bull run. When they cover up most of their initial costs then if the bear market starts they sell the miners and earn some extra profits.

Their main motive is not to add extra-processing power to Bitcoin mining but to earn with the mined coins during the bull run. Their mind is not into long term holding as they want good profits in short durations. They will save the earned money for the next bull run where they will be able to buy more advanced miners that provide more processing power and higher energy efficiency. They will repeat the process over and over.

If you are doing this, how is it favoring you?

Some hardcore crypto miners in my state are into BTC mining for the past years now and I noticed that they don't mine in a bear market, they always buy their asic miners after Bitcoin halving or a month to Bitcoin mining and ride the miners through the bull market, and once Bitcoin start making a turn back in value they start selling their asic miners.

My question. Is are people doing this? And at the same time favours them? Can you opt in and out of Bitcoin mining using bear market to get cheap asic and mine to make profits until the bulls are tired and it's bears turn to take over and you sell your miners..

They have been doing this for a long time but I am wondering how this is a smart idea because I always advice those that want to mine Bitcoin to never sell their miners in a bear market and that they should keep mining and store their Bitcoin.