Bitcoin miners are now losing money - page 3.

Basmic

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Quote from: Febo on March 18, 2018, 11:23:21 AM

Quote from: sjefdeklerk on March 17, 2018, 10:29:32 PM

https://www.cnbc.com/2018/03/15/bad-news-for-bitcoin-miners-as-its-no-longer-profitable-to-create-the-cryptocurrency.html

What is this going to mean for bitcoin, if nobody wants to mine it?

No one will mine with loss long term. So when price decrease they will stop mine and that will reduce difficulty and the rest miners will get higher reward. You also need to understand there is huge difference in costs of electricity. Between cheapest electricity country Venezuela and most expensive electricity cost country South Korea there is almost 10 times difference.

You're right, but it doesn't work if the bankers block access to Fiat. There may be a situation when miners receive income in bitcoins but can not exchange it for Fiat. To pay for electricity at any complexity of the network they need to have access to Fiat. The idea of bitcoin was that we could use it as a currency. But it didn't happen. That is why now there was a crisis of bitcoin and it is not known how it will end.

Febo

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Quote from: sjefdeklerk on March 17, 2018, 10:29:32 PM

https://www.cnbc.com/2018/03/15/bad-news-for-bitcoin-miners-as-its-no-longer-profitable-to-create-the-cryptocurrency.html

What is this going to mean for bitcoin, if nobody wants to mine it?

No one will mine with loss long term. So when price decrease they will stop mine and that will reduce difficulty and the rest miners will get higher reward. You also need to understand there is huge difference in costs of electricity. Between cheapest electricity country Venezuela and most expensive electricity cost country South Korea there is almost 10 times difference.

JohnTask

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Quote from: buwaytress on March 18, 2018, 10:37:21 AM

More or fewer miners will have no impact on the supply... Bitcoin will always be generated at more or less every 10 minutes, whether there's 1 miner like when it all began or thousands like they are now. Tired of the bear move? You've got to get more stamina into you.

No impact on the supply, because of the difficulty adjustment? Fair enough, I believe that's a good point.

More stamina, I would love to have that! Been trading crypto for two years and I was getting used to seeing mostly green and making profits, but lately it's all red and losses. I'm just not used to this bear market I guess, it takes my energy, I can't think straight. Practical advice is always appreciated

eaLiTy

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Quote from: sjefdeklerk on March 17, 2018, 10:29:32 PM

What is this going to mean for bitcoin, if nobody wants to mine it?

If you are aware that there was a time when bitcoin was well below thousand dollars and people were still mining the coin even at a loss,there are big mining farms and they wont quit the process because they have invested a lot of money into this,small time miners will phase out eventually and that is how things work in the mining ecosystem.

cellard

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This is the guy that has been posting FUD threads non stop for days and he has already been accused of doing so.

This is once again an uninformed post. It's impossible that "nobody mines Bitcoin". Bitcoin is as elf regulating system. If you take a big chunk of hashrate down, the difficulty goes down, which means someone will find an huge incentive to become a miner somewhere on planet earth. There's too many people for nobody to be interested on mining, it's a business that will never end because there will always be a demand for decentralized money, and that means people wanting to transact, and that means profit to be made mining.

buwaytress

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First of all, bullshit. Bitcoin price alone has been profitable ever since it was at $1k or so, and yes hashrate has been doubling every step in move with the price, and it's still profitable now. This isn't even taking into account all the alts they're merge mining. Are miners trying to rake in some pity? Not likely. They're just trying to make it seem like they're less of the bad guys some of them are.

Quote from: JohnTask on March 17, 2018, 10:42:00 PM

One could imagine that, because some miners will stop mining, the market will get flooded with BTC less quickly. This might increase demand because there's less supply. Who knows how all of this is gonna play out.

To be honest, I hope the entire market will show a slow upward trend again soon. This long bear move is tiring.

More or fewer miners will have no impact on the supply... Bitcoin will always be generated at more or less every 10 minutes, whether there's 1 miner like when it all began or thousands like they are now. Tired of the bear move? You've got to get more stamina into you.

Altcoindealer

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Quote from: sjefdeklerk on March 17, 2018, 10:29:32 PM

https://www.cnbc.com/2018/03/15/bad-news-for-bitcoin-miners-as-its-no-longer-profitable-to-create-the-cryptocurrency.html

What is this going to mean for bitcoin, if nobody wants to mine it?

No problem. You can go with the difficult so low that one pc is able to calculate the algorhytm. So dont worry, as long as bitcoin is valuable, their will be always some one who will mine cryptocurrencies. So maybe at the moment for the most miners the mining is not profitable, but if they hld the coins long enough, it will gain value again and they sell it for more. So dont spread always the fud news from the mainstream media!

BTCLovingDude

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BTC to the moon is inevitable...

people need to stop worrying about things that does not concern them and start worrying about things that do concern them really. for example right now price is lower and that makes it a good time to buy bitcoin.

miners know how to make profit, you don't have to worry about them!

fabiorem

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Miners have thousands of coins in reserve, they can dump it to cover expenses.

They can also use the excess fiat acquired through these sells, to buy at a higher price and pump the market.

Maybe they are already doing that. Unconfirmed transactions are around 6k. Compare it with the 200k in December.

jakagintiri

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I do not think it's a question of losing money but it's a matter of finding the right momentum to restart a more mature early mining concept, so take some time to think about the future, or maybe the state policy they hold back. There is no cessation of problems in every country we should know it.

Tankdestroyer

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Quote from: sjefdeklerk on March 17, 2018, 10:29:32 PM

https://www.cnbc.com/2018/03/15/bad-news-for-bitcoin-miners-as-its-no-longer-profitable-to-create-the-cryptocurrency.html

What is this going to mean for bitcoin, if nobody wants to mine it?

There will always be someone that will mine bitcoin, just continue to read the article before judging it. It only said that it would not be profitable for countries that have cost of electricity above 6 cents per kilowatt hour but in some countries like China it is still profitable. If many miners stop though, difficulty will adjust so there is nothing to worry about. They will come back soon though(most of them) after it is profitable again.

goaldigger

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The article didnt said that miners will stop mining, they were just take a rest. If your work is not profitable enough, that the fees and charges is greater that it, then you should stop for a bit. They would be back soon once the price recovers and i think that is just for a short period of time.

BitHodler

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OP is an obvious troll, just as much as that troll news source is. It's impossible for anyone to find out exactly what it costs to mine a whole Bitcoin, because it's different for each miner, and per location.

It might be that smaller miners will struggle short term speaking, but that's not an issue at all. If the price doesn't reflect profitability for their practices, then they'll temporarily stop mining, which might lower the difficulty.

This lower difficulty however might stimulate larger farms to fire up even more machines, so that slight drop in difficulty will level out again. It's a market based on supply and demand, it's that simple.

The difficulty is about to adjust itself within an hour, and it's still up 5%....... I'll edit my post later in case there is a quick significant change.

Ghondronk

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Quote from: JohnTask on March 17, 2018, 10:42:00 PM

One could imagine that, because some miners will stop mining, the market will get flooded with BTC less quickly. This might increase demand because there's less supply. Who knows how all of this is gonna play out.

To be honest, I hope the entire market will show a slow upward trend again soon. This long bear move is tiring.

with bitcoin prices falling by 25%, in line with the widespread discourse of firm action taken by a number of regulators.

imapessimist

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Not sure if I believe that 100%. Not saying it isn't true but I thought I read the cost of mining was under 2k for one Bitcoin. But it might not be enough money to do it as a full time job. It could be fud.

jseverson

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Given the fact that these are only estimates, I'm sure they're over-generalizing. They must have used average values for computation, meaning those with dirt cheap electricity, etc. can still profit. There are many different variables to consider. Saying all of them are losing money is simply a lie. It would be more accurate to say that mining difficulty is rising while Bitcoin value is dropping, so it's getting harder to turn profits. No one would read such an article with a boring headline like that though.

But yeah, if it stops being profitable for some, they could simply take a break and go in again once difficulty scales back. This is nothing to worry about.

TERA2

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Deb Rah Von Doom

Quote from: sjefdeklerk on March 17, 2018, 10:29:32 PM

https://www.cnbc.com/2018/03/15/bad-news-for-bitcoin-miners-as-its-no-longer-profitable-to-create-the-cryptocurrency.html

What is this going to mean for bitcoin, if nobody wants to mine it?

It means the difficulty will adjust until mining is profitable again. This should be the least of your concerns.

Herbert2020

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Quote from: sjefdeklerk on March 17, 2018, 10:29:32 PM

What is this going to mean for bitcoin, if nobody wants to mine it?

bitcoin will die. but that is a huge IF and it has nothing to do with the news you shared here.

people are still mining bitcoin and they are making profit and they will always be people who will continue mining bitcoin. you see the way bitcoin mining works is with difficulty. there is always people who are mining it easier because they have cheap labor, cheap electricity, etc and there are individuals without those perks. if it becomes less profitable these individuals are the first to leave, possibly even farms may turn off some equipment or switch them and thanks to them difficulty comes down and mining becomes profitable again.

even if ALL the miners leave, i will pick up mining with my PC and enjoy ALL the block rewards Wink

npredtorch

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This is just another fud news to drop bitcoin price. The negativity of the title tells it all.

Quote

Bitcoin has dropped to a point where it's not that profitable to produce, according to some estimates.

In what estimates? -make up estimates

In the first place, there are many factors for mining profitability. The place, hardware used, e-cost and many more which is different in each miners around the globe.
If someone will exit, another one will enter because certainly it have more advantages on these factors. It's impossible to say that - there would be no miners.

Za1n

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People will still mine it and the media reports are over exaggerating the issue. No doubt profits are down, but we are a ways from mining being unprofitable.

As has been pointed out, not everyone has the same costs, so there will be some who can make money while others might need to quit. This is no different than any other industry where to compete you need to trim costs and find more efficiencies in the way you work or run your business.

For Bitcoin mining this might mean shutting down older less efficient hardware or finding lower power costs, but like any business those who stand still will lose out, while those who are proactive and seek out solutions will be ok.

Topic: Bitcoin miners are now losing money - page 3. (Read 680 times)