Then they can make a decent amount of profits based on USD value, hopefully they hold enough bitcoins to stay here for longer.
Topic: Bitcoin Halving's Effect to miners (Read 179 times)
With the current price it is harder for the miners to sustain the field but what if the price trend becomes bullish.
Then they can make a decent amount of profits based on USD value, hopefully they hold enough bitcoins to stay here for longer.
Then they can make a decent amount of profits based on USD value, hopefully they hold enough bitcoins to stay here for longer.
The most vulnerable here in halving are those miners who don't make enough money to sustain themselves in mining industry. That's the reason why some miners choose to invest in bitcoin rather than mining it. They already shutdown their devices before the halving because they know that if they still continue, they will probably fail due to lack of equipment.
Probably, those are small time miners.By observing the hash rate you can easily conclude that the previous bitcoin halving isn't significant affects the overall mining industry, well just for these days, lets see for more weeks.
I have already open a topic about this before the halving took place
You can take a look on it https://bitcointalksearch.org/topic/m.54318074
I still remember what the vice president poolin, a multi-cryptocurrency mining service, "miners that is using old equipment have to disconnect after halving" it was an aggressive approach to the small ones though, however it may be an encouragement to give their equipment an upgrade since old models are not that energy efficient compared to latest ones. Or they are trying to move these miners out of their way in btc mining.
You can take a look on it https://bitcointalksearch.org/topic/m.54318074
I still remember what the vice president poolin, a multi-cryptocurrency mining service, "miners that is using old equipment have to disconnect after halving" it was an aggressive approach to the small ones though, however it may be an encouragement to give their equipment an upgrade since old models are not that energy efficient compared to latest ones. Or they are trying to move these miners out of their way in btc mining.
Give it a week or two to see the general reaction of miners in the recently-concluded halving. Usually, it takes some time before miners decide whether leaving their machines running is better than closing it down for good. Normally, huge mining farms would continue hashing as usual whereas the smaller ones are forced to liquidate assets and quit for good. Anyway, the reason why I say that it takes some time before decisions are made is because of the price. If good price action happens within that time-frame, they would continue to mine and hope for the best and if not, they are just operating at a loss and it's better to take the L and shift the money somewhere else.
What are your thoughts about these miners shifting to bitcoin investment? Can they find it much effective than mining bitcoin block?
This means that the minner is reduced, the goal switches because the tool does not generate profits if it is run. I think this will have an impact on the price of bitcoin. They will hold BTC until they make a profit. Yes they have to save their mining products up to a certain price and sell it to cover all mining costs.Therefore bitcoin prices should go up.
To my opinion it's still too early to acess any kind of influence of halving, including that on miners.
Yes, mining isn't so profitable anymore and some miners might give up mining if they edtimate that buying Bitcoins is cheaper and more profitable. However, miners will not disappear just like that. Also, I don't believe that Bitcoin price will have so big growrh like some expect but let's just wait for a while.
Yes, mining isn't so profitable anymore and some miners might give up mining if they edtimate that buying Bitcoins is cheaper and more profitable. However, miners will not disappear just like that. Also, I don't believe that Bitcoin price will have so big growrh like some expect but let's just wait for a while.
It's not like they were unaware of the halving of block rewards and were suddenly hit by operating losses. They knew about this years in advance so I assume that they already have a back up/contingency plan prior to the halving.
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What are your thoughts about these miners shifting to bitcoin investment? Can they find it much effective than mining bitcoin block?
Well, if they can't find a way to increase their mining efficiency then it's a reasonable choice to become a bitcoin investor instead. Whether it's effective or not depends on their ability to hold/trade. What are your thoughts about these miners shifting to bitcoin investment? Can they find it much effective than mining bitcoin block?
I guess what the small miners are doing right now is they are on testing phase with the new blocks if it is still going to be profitable at their end or not, or they should upgrade their instruments to mine. What's best for them is to switch to altcoins, only if they don't want to profit less with bitcoin since they have their equipment, aside there are less miners on altcoin side compare to bitcoin that has been the home for bigger mining groups. If their expenses exceeds from their profit, then it's up for them to decide whether to upgrade or to move out.
The challenge is real! However, it's too early to say anything. If miners see that buying bitcoin from market is cheaper than mining, they would probably move out from mining and buy it from the market.
But this particular scenario would not come into play if we see bitcoin price increasing (which is indeed happening). If the bitcoin price increases to a level where miners can maintain their profitability, then there is no question of moving out of mining business.
Let's wait to see what actually happens! Bitcoin is indeed showing an upward direction since last few days and we don't really know where it is heading finally. It's better to watch the situation without concluding anything.
But this particular scenario would not come into play if we see bitcoin price increasing (which is indeed happening). If the bitcoin price increases to a level where miners can maintain their profitability, then there is no question of moving out of mining business.
Let's wait to see what actually happens! Bitcoin is indeed showing an upward direction since last few days and we don't really know where it is heading finally. It's better to watch the situation without concluding anything.
We all know that every four years, bitcoin undergo the process of halving and it is the third time in its history. This year 2020 halving make the supply of bitcoin mining block which is 12.5 BTC to 6.25 BTC. Every four years, bitcoin mining block always becomes half like in 2012 from 50 BTC to 25 BTC, in 2016, 25 BTC to 12.5 BTC, this year is the third halving period.
Miners are really having a hard time to continue mining due to some sort of insufficient devices and higher cost of expenses in mining. Some miners are willing to shutdown creating or gathering new bitcoin because of outdated devices. It is not that easy to replace those old mining devices and it will surely costs a huge amount of expenses to update or replace them.
What are your thoughts about these miners shifting to bitcoin investment? Can they find it much effective than mining bitcoin block?
Miners are really having a hard time to continue mining due to some sort of insufficient devices and higher cost of expenses in mining. Some miners are willing to shutdown creating or gathering new bitcoin because of outdated devices. It is not that easy to replace those old mining devices and it will surely costs a huge amount of expenses to update or replace them.
Quote from: https://cointelegraph.com/news/it-happened-bitcoin-just-experienced-third-halving-in-its-history
According to mining pool Poolin’s vice president, Alejandro De La Torre, a number of unprofitable miners had already begun shutting down their equipment before the Bitcoin halving on Monday.
The most vulnerable here in halving are those miners who don't make enough money to sustain themselves in mining industry. That's the reason why some miners choose to invest in bitcoin rather than mining it. They already shutdown their devices before the halving because they know that if they still continue, they will probably fail due to lack of equipment.What are your thoughts about these miners shifting to bitcoin investment? Can they find it much effective than mining bitcoin block?
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