Bitcoin Hashrate Increases | Bitcointalksearch.org

rexxarofmoknathal

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Quote from: Agios on July 04, 2020, 11:02:11 PM

This indicates that the crypto mining industry remains healthy after halving and a little selling pressure from miners.
The combination of at least miners selling Bitcoin, an optimistic long-term technical structure, increasing HODL and growing interest from large investors and institutions, increases the chances of a new rally in 2021.

I suppose this pressure acted in weeding out the amateur miners and only those with enough resources and who were proficient enough remained. This turn out of events is not completely unexpected as even if the pressure is felt by others the gaps will be sealed, especially when taking into account the grand scheme of things. The halving only restrained resources, made it more difficult for miners but the rewards are just as measurable, and I feel that the industry is one in which adversity won't win.

Review Master

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Quote from: fiulpro on July 08, 2020, 11:54:59 AM

Well it was bound to happen , since due to having the salary of the miners were cut down to half , which meant that most of the miners weren't able to earn much to sustain the electricity bills of the Mining and at the same time continue to keep a healthy sum for their day to day activities.

Therefore the small miners had to shut down their business since it was not at all beneficial for them .

For those of you who might be wondering why the hash rate is important ?
In one word it's all about the security , it makes the Bitcoins more secure as a whole.

That's true and it's not profitable for those small miners who are doing this alone , but it's sure to be beneficial for the old as well as big mining farms. Also, hashrates are more important like miners to run the bitcoin blockchain ecosystem and the rising of bitcoin's hashrates indicate that more miners are now in bitcoin's mining sector as well it's likely a good sign for the starting of bitcoin's most awaited bull run which is expected by the bitcoiners from the begining of this years and current halving events. Let's wait and watch what happen next.

fiulpro

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Quote from: Agios on July 04, 2020, 11:02:11 PM

When halving happened in May 2020, crypto analysts expected that the Bitcoin hashrate would decrease. However, data from Blockchain.com shows the Bitcoin hashrate returned to the level before halving. This indicates that the crypto mining industry remains healthy after halving and a little selling pressure from miners.
The combination of at least miners selling Bitcoin, an optimistic long-term technical structure, increasing HODL and growing interest from large investors and institutions, increases the chances of a new rally in 2021.

Well it was bound to happen , since due to having the salary of the miners were cut down to half , which meant that most of the miners weren't able to earn much to sustain the electricity bills of the Mining and at the same time continue to keep a healthy sum for their day to day activities.

Therefore the small miners had to shut down their business since it was not at all beneficial for them .

But then again which meant that it was a new opportunity for the big companies working in the Mining industry, those companies very promptly increased their work and machines which directly lead to the stabilization of the hash rate.

For those of you who might be wondering why the hash rate is important ?
In one word it's all about the security , it makes the Bitcoins more secure as a whole.

Schaeferness

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Bitcoin mining hashrate is an activity to make some money. it means that many still have positive hopes for the price and that they can make some profits if they add more new coins.
It will not contribute to the price increase because in the past it took more than months for the price to start increasing and more than 15 months to reach the top.
hashrate does not mean that the price will increase, it is an event to reduce the supply and influence the price over the coming years so that mining bitcoin reword reduce to has a fixed value.

hd49728

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Quote from: pooya87 on July 08, 2020, 12:34:33 AM

that simply is not possible, you are exaggerating. if mining farms were making nearly 50% pure profit then a lot more mining farms would have started and the same mining farms would have also grown their operation so much so that it would have reached equilibrium again with a smaller profit.
there is certainly a difference where mining farms make more profit but it is a lot smaller. i can't make any estimates since i don't have the actual data (nobody except a farm operator has) but it certainly isn't that high.

Mining is the most complicated branch in the crypto industry. People (miners) have to spend capital to build up infracstructures (farms, mining rigs, power lines, and safety things as well as knowledge to fix technical things and do maintananace). It is not easy and requires many skills to manage mining farms productively and profitably.

Capital to ensure not give up when price is dumped is another thing to help mining farm's owners to keep their farms running and going through terrible periods for miners. But the principle is when things are hardest, there are highest opportunities. People who have good knowledge and exeprience don't say it is risky. They are not gamblers to say mining in such periods is risky. Capitulation mostly come from small miners.

I used to mine crypto in the year 2017 and 2018, and TBH mining is not for everyone and it is more convenient to invest rather than mining.

pooya87

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Quote from: franky1 on July 07, 2020, 09:46:10 PM

the mining farms who can get hold of stock at wholesale/manufacturing cost. and also get preferential contracted energy costs have a ~$5k cost of mining a bitcoin

that simply is not possible, you are exaggerating. if mining farms were making nearly 50% pure profit then a lot more mining farms would have started and the same mining farms would have also grown their operation so much so that it would have reached equilibrium again with a smaller profit.
there is certainly a difference where mining farms make more profit but it is a lot smaller. i can't make any estimates since i don't have the actual data (nobody except a farm operator has) but it certainly isn't that high.

Debonaire217

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Quote from: omone1 on July 07, 2020, 10:03:41 PM

There was so-much negativity that miners will close down their farms and sell bitcoin causing the harsh rate to drop due to halving. It's now clear that they prefer to stay in business than shutting down. If one follows all the analysis of some experts, one may run at loss, it's better to keep faith with bitcoin than listening to nay sayers who are majorly speculators.

Most of the people talked too much about this, they mainly speculate that miners will more likely to leave and quit their mining farms but it turns out that these people (miners) are valuing bitcoin. As we all know, technology develops, as well as mining rigs, and one way to adapt to the halving is to search for alternatives. That is why miners might be bought new rigs that are more efficient, and powerful. But the question is, what will they do to their old ant miners or rigs used for bitcoin? They might already sold it to other people to mine altcoins.

omone1

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There was so-much negativity that miners will close down their farms and sell bitcoin causing the harsh rate to drop due to halving. It's now clear that they prefer to stay in business than shutting down. If one follows all the analysis of some experts, one may run at loss, it's better to keep faith with bitcoin than listening to nay sayers who are majorly speculators.

franky1

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the home hobby miners have an average mining cost of about $9k-$12k mining right now.
however. the mining farms who can get hold of stock at wholesale/manufacturing cost. and also get preferential contracted energy costs have a ~$5k cost of mining a bitcoin

..
one thing to note is that although mining hashrate appears to have gone up from 90exa to 120exa
this is not a sign that hobby miners have increased alongside mining farms
but instead hobby miners have decreased. and mining farms have updated their rigs from ~70thash to 110thash(60% more efficient)

meaning without needing to expand warehouses. they just swapped equipment in the same warehouse to up their hashrate. and instead of that accelerating the hashrate upto ~140exa. the 10~20exa drop of hobby miners means its showing as a 120exa network hashrate overall

in short less hobby miners that cant afford it. dropped out
more hashpower from mining farms that upgraded hardware

most hobby miners that were mining to hoard coin find it cheaper to now just buy it at $9k, rather than to mine it at $12k

Darker45

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Quote from: Baofeng on July 05, 2020, 09:36:23 AM

Quote from: kryptqnick on July 05, 2020, 08:43:12 AM

Quote from: mk4 on July 04, 2020, 11:05:32 PM

We had so much negative expectations before the halving due to the "Bitcoin mining death spiral" headlines from the so-called "crypto news sites". Funny how now we're only like 4 TH/s from the all-time-highs.

https://www.blockchain.com/charts/hash-rate

I realize it doesn't have direct impact on Bitcoin price or anything, but that's a good thing, right? I mean, if miners are willing to mine hard even though halving occurred just recently, it must mean they believe in the profitability for this activity in the long run. If miners think Bitcoin's worth it, this might motivate other users to feel more confident about it. However, if small miners are leaving and only mining farms are staying in business, this means even more centralized mining, which is a bit sad. I don't know if it's true that miners are leaving, even though the difficulty rate is not dropping.

Yes, bitcoin mining is really profitable in the long run and as how much they try to correlate mining to the price of bitcoin, in the end I won't say that it doesn't matter at all as the price could increase base on supply and demand. And I think by now, those who chooses to leave the mining business because they don't see any profits or simply they can't cope up because of the cost are all gone. And those who are left are big mining farms ready to play the game post halving.

Not just in the long run. I believe the miners are still profitable right now. With the price of Bitcoin at the $9,000 level, I don't think they are netting negatives.

There were news that miners are selling more BTC than they accumulate as mining rewards. I guess this means that the price is good enough for them to dispose their old rewards and take a decent profit.

jademaxsuy

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Well it was plan of course for the good of bitcoin system. Promoting HODL while market is bad would be the best thing to do. Users being worried on the halving and the increase hashrate would also mean for them to hold still and not to loss money on bitcoin. As a result, bitcoin now had slowly recover after a few months. Relatively not all coins had been able recover for even ether had still need to catch up in the market where it even reaches to 700 USD compare to now which is currently low.

Whatever market movement for crypto for its market prettt sure that traders will surely continue to trade. For them it is not about the money but it is all about how to.increase crypto holdings.

joniboini

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Quote from: kryptqnick on July 05, 2020, 08:43:12 AM

However, if small miners are leaving and only mining farms are staying in business, this means even more centralized mining, which is a bit sad. I don't know if it's true that miners are leaving, even though the difficulty rate is not dropping.

That's how market works. It might feel unfair for some people but you can't secure the growing network with low hash power. Just like a regular business.

I believe some small miners are leaving but they'll probably come back when the time is right. I mean, if you don't make profits even when you join pools, then you'd likely move on too.

ChrisPop

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This tells me that the miners are financially stable and they handle their operations professionally. A healthy mining network is good for Bitcoin, we just need to work more on the adoption part.
Hashrate increase = difficulty increase = mining costs increase

Baofeng

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Quote from: kryptqnick on July 05, 2020, 08:43:12 AM

Quote from: mk4 on July 04, 2020, 11:05:32 PM

We had so much negative expectations before the halving due to the "Bitcoin mining death spiral" headlines from the so-called "crypto news sites". Funny how now we're only like 4 TH/s from the all-time-highs.

https://www.blockchain.com/charts/hash-rate

I realize it doesn't have direct impact on Bitcoin price or anything, but that's a good thing, right? I mean, if miners are willing to mine hard even though halving occurred just recently, it must mean they believe in the profitability for this activity in the long run. If miners think Bitcoin's worth it, this might motivate other users to feel more confident about it. However, if small miners are leaving and only mining farms are staying in business, this means even more centralized mining, which is a bit sad. I don't know if it's true that miners are leaving, even though the difficulty rate is not dropping.

Yes, bitcoin mining is really profitable in the long run and as how much they try to correlate mining to the price of bitcoin, in the end I won't say that it doesn't matter at all as the price could increase base on supply and demand. And I think by now, those who chooses to leave the mining business because they don't see any profits or simply they can't cope up because of the cost are all gone. And those who are left are big mining farms ready to play the game post halving.

kryptqnick

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Quote from: mk4 on July 04, 2020, 11:05:32 PM

We had so much negative expectations before the halving due to the "Bitcoin mining death spiral" headlines from the so-called "crypto news sites". Funny how now we're only like 4 TH/s from the all-time-highs.

https://www.blockchain.com/charts/hash-rate

I realize it doesn't have direct impact on Bitcoin price or anything, but that's a good thing, right? I mean, if miners are willing to mine hard even though halving occurred just recently, it must mean they believe in the profitability for this activity in the long run. If miners think Bitcoin's worth it, this might motivate other users to feel more confident about it. However, if small miners are leaving and only mining farms are staying in business, this means even more centralized mining, which is a bit sad. I don't know if it's true that miners are leaving, even though the difficulty rate is not dropping.

GreatArkansas

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Quote from: Agios on July 04, 2020, 11:02:11 PM

(...)
The combination of at least miners selling Bitcoin, an optimistic long-term technical structure, increasing HODL and growing interest from large investors and institutions, increases the chances of a new rally in 2021.

If we also based in some previous years' price action of Bitcoin, it also shows that it is expected a new rally in year 2021 which kinda also expecting a new all-time-high.
Bitcoin hash rate still good and neutral for now, still on this year we got the all-time-high of hash rate.
A lot of people also expected a new all-time-high after the block halving but we are still nowhere below $10,000. It happened just what like people expected on the Bitcoin hash rate would decrease.

Artemis3

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Miners are leaving, but the remaining miners have asics which are much more efficient. While the typical asic miner in 2016 (the S9) did 12TH, now the typical miner does 50TH, while only consuming about twice as much power.

The net effect, subtracting those who leave and the few remaining who upgraded, is that the hash rate increases. BUT! China is seasonal, summer electricity is cheap while winter is not, so there might be an interesting effect later as winter approaches.

Later on at the next halving you will see a more pronounced effect, perhaps finally diminishing the hashrate due to being unprofitable to mine at any electricity price (except possibly free renewable).

o_e_l_e_o

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The price fall in March, 2 months prior to the halving, showed that all the fear regarding a mass exodus of miners was unfounded. In March, the block reward was 12.5 BTC and the price fell to below $4,500. There was small dip in hashrate, but nothing worrying. Come the halving, the block reward halved to 6.25 BTC, but the price was up above $9,000, meaning miners were still taking in the exact same reward per block in terms of USD as there were a few months earlier. Interestingly, we saw an almost identical small dip in hashrate. As mk4 has pointed out above, though, this was short lived and we are already pushing all time highs in terms of hashrate again.

And all that's without even mentioning the dip down to $3k at the start of last year which resulted in a USD reward of $37,500 per block, far below the current $56,250 per block miners are currently receiving. And even if the hashrate dropped by some huge number like 50%, then it would still be higher than it was only a year ago, and still higher than it has been for 90% of bitcoin's existence.

so98nn

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Quote from: mk4 on July 04, 2020, 11:05:32 PM

We had so much negative expectations before the halving due to the "Bitcoin mining death spiral" headlines from the so-called "crypto news sites". Funny how now we're only like 4 TH/s from the all-time-highs.

https://www.blockchain.com/charts/hash-rate

This could have been due to the fact that majority of mining firms will find it easier to incur handsome fees & increased prices over the decade. They know very well with more speed they will be able to mine faster, since network difficulty is increasing as well, they have to either keep up the speed or increase it to ATH++.

Who knows, someone might just have triggered mega mining farm after halving. Tongue

mk4

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We had so much negative expectations before the halving due to the "Bitcoin mining death spiral" headlines from the so-called "crypto news sites". Funny how now we're only like 4 TH/s from the all-time-highs.

https://www.blockchain.com/charts/hash-rate

Topic: Bitcoin Hashrate Increases (Read 222 times)