As mining is no longer profitable... - page 2.

bittick

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Quote from: Coronofud on February 05, 2023, 02:39:47 PM

As mining is no longer profitable won't the POW algorithms go to shit? They'd be at a real risk of 51% attacks for some coins.

Yeah it's shit. So many collusions happened with miners in any of POW blockchain. ETC has proven that if 51% one of disadvantage from POW. There's also another point that can be discussed and what will you get as a buyer from POW coin other than bitcoin? You were just giving miners your money. You get nothing from what you have bought. Cheesy

Quote from: Coronofud on February 05, 2023, 02:39:47 PM

The whole POW Model needs the network to be very busy just for security and to function

More nodes = more decentralized. what's who POW is working but POS is almost the same. More validators = more decentralized.

Quote from: Coronofud on February 05, 2023, 02:39:47 PM

It reminds me of when NXT got released and BTC miners worked out it was more profitable cracking NXT loggings then mining coins themselves lol

There are so many bad stories that happened with POW coins. The worst thing is the collusion between miners. They act like they were parties who have been owning the coins. The buyers and holders have no power and miners decide everything. lol.

HmmMAA

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Quote

1 hour of attack on bitcoin costs $1,038,703 at the moment. And from what i have understood others can kick you out of the network after just one double spend so i am not sure if that would be worth it. Maybe with altcoins or if you were planning to short bitcoin at the same time with 100x leverage and people would sell in panic. That would be illegal as hell but i guess it would be hard to prove as trading with inside information.

1 hour of attack would cost that much in case you could rent half of the hashrate , which is pretty hard with rented hashpower . One other case is you own the miners with half of total hashrate , that means that you have made a tremendous investment and you want to depreciate it . Third case is to bring new miners and gain the control of network , which means that the investment should be double than in the previous case . So , i think no one would try to double spend by attacking the network ( remember that you can double spend only your transaction ) as he should find someone to take a load of money without any confirmation . Not to mention that if he acts honestly , probably will earn more .

HmmMAA

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If mining becomes unprofitable, some miners may choose to switch to a different cryptocurrency or move to a different type of consensus algorithm, such as proof-of-stake (PoS).

Well , that's something new it seems . Can you point a PoS coin that is mineable Huh

As far as i know ( by definition ) there is no such coin .

o48o

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Quote from: Coronofud on February 05, 2023, 02:39:47 PM

As mining is no longer profitable won't the POW algorithms go to shit? They'd be at a real risk of 51% attacks for some coins.

The whole POW Model needs the network to be very busy just for security and to function

It reminds me of when NXT got released and BTC miners worked out it was more profitable cracking NXT loggings then mining coins themselves lol

1 hour of attack on bitcoin costs $1,038,703 at the moment. And from what i have understood others can kick you out of the network after just one double spend so i am not sure if that would be worth it. Maybe with altcoins or if you were planning to short bitcoin at the same time with 100x leverage and people would sell in panic. That would be illegal as hell but i guess it would be hard to prove as trading with inside information.

abel1337

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There are really a lot of factors to be able to be profitable in mining. Cheap electricity is one of the biggest factor on determining how much profit you can get from mining, Weather is also a factor in it given that it is much suitable to mine on a cold weather country. If you only want profit, There are still active POW coins that can be mined and if you have the certain qualifications like cheap electricity, cold weather, good space for mining rigs , etc. you can still be profitable on it. Miners unload their mining rigs and the mining cards have surge the market for a really cheap price as ethereum transitions to POS. You can possibly get a cheap mining rig today with way more less starting capital.

livingfree

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We don't have the same situation as per our countries. There are countries that produces cheap electricity and that's beneficial to the miners there and won't be thinking about the cost a lot.

Whilst some miners sees that it's no longer profitable, they've got faith in what they do so this is what they do. They keep their operations and running their miners, collects the coins that they've been mining, hold it and then will be eventually sold to the market when the price increases.

And that takes a lot of patience to happen because they have to sustain the cost through their other means but, not all miners has the capacity to do that strategy.

JANUS23

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It depends on the profit margin. If you can make 10% of your investment in 1 month, then some people can accept it, and build on it. Also relatively cheaper sources of electricity are coming up these days

uneng

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Quote from: avikz on February 07, 2023, 01:12:59 PM

But there is one concern though. Individual miners are already out of the game. Now only big scale miners are making money. Unless the mining companies are able to find an alternative source of free energy like wind or solar, there will be a time when mining will become unprofitable. We may need to find a solution then.

It's said mining won't become unprofitable, because miners only sell their bitcoins for a price that can pay for the mining costs, plus some liquid profit for themselves. Theoretically they would never accept mining at loss. So the market has to adjust itself to the currently costs of mining operations.

Less bitcoins mined per block = more expensive bitcoins. And mining profits remain stable...

avikz

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Quote from: Coronofud on February 05, 2023, 02:39:47 PM

As mining is no longer profitable won't the POW algorithms go to shit? They'd be at a real risk of 51% attacks for some coins.

The whole POW Model needs the network to be very busy just for security and to function

It reminds me of when NXT got released and BTC miners worked out it was more profitable cracking NXT loggings then mining coins themselves lol

Mining is still profitable if you can get the right gear and the electricity price is reasonable. There are many miners still operational and making big amounts in profit. So I am not sure from where did you get that info that mining is not profitable!

But there is one concern though. Individual miners are already out of the game. Now only big scale miners are making money. Unless the mining companies are able to find an alternative source of free energy like wind or solar, there will be a time when mining will become unprofitable. We may need to find a solution then.

Yaunfitda

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Quote from: Coronofud on February 05, 2023, 02:39:47 PM

As mining is no longer profitable won't the POW algorithms go to shit? They'd be at a real risk of 51% attacks for some coins.

The whole POW Model needs the network to be very busy just for security and to function

It reminds me of when NXT got released and BTC miners worked out it was more profitable cracking NXT loggings then mining coins themselves lol

It might be as profitable when crypto mining started, but I'm sure there are still miners around the globe, otherwise most of the small altcoins are going to be dead by now. And with that, profits are still going to be made, no matter what.

So I try to look at which altcoins are still making money for miners, and surprisingly, there are still some,

https://whattomine.com/

There are some making 100%++ in 7 days or so. Of course, this might not be accurate, but at least you can gauge it.

Pierre 2

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Mining is profitable for many people than can produce cheap electricity through their solar panel systems. Its also profitable in some Asian countries because energy sources are rich so its cheap to produce electricity in overall. I think pow mechanism won't easily die because investors (or buyers) think pow concept makes value of currency stronger mentally. Its like physical proof. So there will always be some pow coins. Including Bitcoin.

Apocollapse

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Right now mining is still profitable as long as you live in country have cheap electric cost and you have a good mining rigs. Many new coins created using POW algorithm doesn't really have any utility and usefulness, when the coin lost it's adoption, the developer either change it to POS algorithm or abandon it. At least other coins beside Bitcoin e.g. Doge, Litecoin and Monero will still exist since they have a lot holders.

Coronofud

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As mining is no longer profitable won't the POW algorithms go to shit? They'd be at a real risk of 51% attacks for some coins.

The whole POW Model needs the network to be very busy just for security and to function

It reminds me of when NXT got released and BTC miners worked out it was more profitable cracking NXT loggings then mining coins themselves lol

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