Topic: Bitcoin Miners Face Leanest Month of 2024: August Earnings Hit Year’s Low - page 2. (Read 910 times)

the reward can still continue halving for another hundred years
yep ONE HUNDRED YEARS

the reward halves every 4 years, but the market price of those rewards moves forward more then 200% in that time
look at the range in the last cycle $15k-$70k thats 500%

meaning there is more money to be made

enjoy
..or stick with fiat that only offers 4-8% a year (17-34% in 4 years compounded)

you would expect the pace of that type of activity to be slowing way down now. its like trying to get onto a dying horse.

The supply of Bitcoin and some Altcoins to be mined is getting thinner. Several countries in the world have opened up large-scale bitcoin mining businesses since 2015 so that Bitcoin and Altcoins that are currently mined are getting harder, this is what causes miners' income to decrease from year to year.

you only get free electricity at your own house and you have to buy the equipment. no partnering with someone where they send you free equipment. the hardware costs alone might be hard to break even on before the hardware stopped working. that would be your biggest challenge. that and all the noise you generate. so you would have to spend money trying to stop the noise from bothering you and your neighbors. and keep a low profile so that authorities didn't try and stop you from running a commercial operation in a place zoned for residential. it won't be as easy as you think!

Free and unlimited electricity? I believe you could mine using older and second-hand hardware if you're lucky to have such an advantage over other mining farms. Because we're talking hypotheticals, you probably could build a partnership with Jihan Wu and tell him to provide the ASICs and you provide the electricity for a 50-50 split on all mined Bitcoins. You're like a quasi-central-bank printing money for free to be distributed.

this is where math always helps out

so lets do it
the average network is 650exa



which is $6318 for 234thash
(650,000,000 / 234 =2.777m)
(2.777m asics equivalent of running on average)

the hardware cost spread over 2 years of 24/7 operating is a hard ware cost per btc of:
6318 *2,777,777 = 17,550,000,000
17,550,000,000 / 105k blocks / 3.125 btc = 53,485

this is the current bottomline of the new batch hardware costs being released this q3 of 2024..
however many miners are using the hardware cost of 2022-3 when they got the s21 range which had a average hardware cost per asic of $4.2k and a price per btc cost over 2 years of $35k per btc

i'm not even sure that if someone was able to get free unlimited electricity that they would guaranteed to be profitable mining bitcoin. because the hardware costs is so high. the hardware might stop working before they break even.

Plus there's mining hardware depreciation and obsolescence. Turning off and limiting your miners to mere eight hours a day loses its opportunity to breakeven on the hardware cost which must be done as quickly as possible. In this industry, cheap electricity is the biggest requirement to succeed. No access to cheap electricity means losing against the other more efficient miners who do have access. It would absolutely be more profitable to buy the DIP, and HODL with the capital and relax by being a passive investor.

True. I think when you struggle to accumulate those Bitcoins, funny enough that we can decide that hash rate has no more become new if implies the CEX with the government developments.

We just want to make the money while risk factors are undermined but literally can not not high fees just also as when we are laid on highily taxations by the CEX even while we have less income.

So number 1 is a most attractive but then, only legitimate Bitcoin earners would fans this factor because they fears no judge when transactions remains a public ledger even when assets is not practical under our full control.

However, while we anticipates on the governments accepting Bitcoin at all cost for wider values and utilizations, we definitely can not eliminate Centralization.

its not just electric.. its hardware cost too
if the 2 year ROI on asic hardware expectation is based on 24hour of sat acquiring.. reducing mining time by 3 means hardware ROI of the asic takes 3x longer because you are getting 3x less sats per day (if doing your 8 hour mining)
to recoup that expense

but now you see why some places like hawaii will just buy coin at any price even to the ATH premium

i'm not sure its absolutely necessary to do the 3x power draw. just run your miner for 8 hours per day and that reduces the cost of your solar system and the size they take up. if you can't make money doing that then i doubt you can make any money by scaling that up. but you are right, hawaii is probably a better place to vacation or buy bitcoin than try and mine it. 

solar is great for normal household power utility.. especially if you plan to live there for many years to ROI the solar investment.. after all a few led room lightbulbs, a tv and a fridge freezer only uses say 1kwh so dont need many panels for basic minimalist living(candlelit nights)

but a asic is over 3kwh so need 9x1kwh panels to be a 1asic hobby miner (average EFFICIENT sunlight is 8 hours meaning 3x power draw to take in enough to use on demand and store for use later of the other 16 hours without good efficient sunlight).. then you look at the limited roof and backyard space to fit them.. and then look at the cost of panels and installation and delivery to remote islands, and suddenly the math shows that you are not going to ROI that panel investment in 2 years at todays bitcoin prices either

researching and mathing things out is great.. try it

if that's the case have they ever heard of solar power? maybe they need to invest in some solar panels on their roof i am sure it will be very much worth it. they'll be saving a huge amount of money.

you live in hawaii and you have strong sunlight all day long and yet you don't even realize that it is the solution to your high power costs. strange.

Good point, ser. It would be good to have a website that shows which cryptocurrencies, that uses the SHA-256 hashing algorithm, are more profitable than Bitcoin at any moment and observe miner behavior in those coins compared to Bitcoin. Plus show those coins' prices denominated in Bitcoin.

It would probably in the mining cabal's utmost advantage if they establish a liquid market of SHA-256 coins that are trading against Bitcoin.

to me hobby miners are not professional miners contracted into mining as a full time task. they just play around when the time is right. they are more likely to jump to crapcoins that are sha-PoW when times are bad for btc profit. and market buy btc when its cheaper to buy coin rather then pay electric at a loss
hobby miners dont do business plans of a 2 year budget, prepaid.. hobby miners are more short term dipping in and out when the time is right


right now there are people living in the pacific islands (japan/hawaii) where electric is upto $0.50/kwh meaning their mining costs is upto $290k/btc if they mined.. so they are not going to mine but will happily buy bitcoin at any price below their mining cost (todays price -> up) because buying from the market is cheaper then mining.. they wont just "mine at a loss" as that is just bad math, bad economics

look at the specific electric costs per state/region/country and then do some maths on electric cost + hardware cost(2year lifecycle) and calculate each state/region/countries mining costs per btc and you will soon see who is a guaranteed market buyer and which countries drop in and out of mining due to the volatility this year of $50k-$75k market and then what countries are doing industrial electric cost mining where they can continue mining even in the $50k range of cost
the numbers will surprise you and educate you more into the sway of sentiment between miners and market buyers

also when you do the calculations of each country you start to see the measure of the max mining costs on the planet, where even the most expensive mining can mine if the price went high enough and would then cause even those market buyers to stop being market buyers where by all the buys would dry up and set the next ATH premium because everyone would then profit more if they mined so the sentiment switches

enjoy doing some math

They can be hobby miners if they have already been in this Bitcoin mining industry long enough, get enough profit and have enough deep budget. I mean they are rich enough to mine bitcoins as their hobbies without any worry on what's happening now and next couple of months because they can spend bills from their deep pockets.

They don't mind facts are going on at the moment and near future, consider mining as hobby but eventually they get profit because after several months, market rally helps them to automatic harvest profit. Several months is only example, their waiting time for profit harvest can be different depends on different phases of market.

Or because they're hobby miners, the incentives/profit are not their actual main motivators when the mine Bitcoin. They will probably continue mining at a loss, then wait until the price surges their operations back to profitability.

Plus some miners might be speculators too, including professional miners.

There is a part that you are missing, do not forget that Bitcoin miners won't want low fees all the time, because higher fees equals to more profits for Bitcoin miners.

A high hashrate will be moderate because the higher the hashrate gets the lesser the profits that miners make, Bitcoin value has to keep increasing for mining to make sense, or some companies have to stop mining and the hashrate will go lower which means less difficulty for mining.

Centralisation or not people don't really care, if they do they won't use any centralised exchanges to trade Bitcoin, most Bitcoin investors are in for the long term profits, not because of Bitcoin decentralization, many people don't care about this.

In the first place, if truly people understand decentralisation they won't want to send their BItcoin into any exchange account, peer to peer trade, and decentralized exchanges are fitted for Bitcoin, not CEX, but who cares? 

1. hobby miners dont move/migrate home just to be profitable.. when the underlying bitcoin costs raise and the market lowers to where the market is down at the value support testing the new bottom.. those unprofitable miners switch off mining or move mining over to a crapcoin temporarily.. and/or then become market buyers of btc because its cheaper to buy coin than buy electric to mine it

2. point(1) then ignites a market bull season, as proven by the previous halvings and ATH seasons..

humans seem to be willing to take alot of abuse and then more on top of that. just so they can make a few bucks. that's going to be miners oneday...  everyone is going to be shitting on them and they will be barely breaking even. what a wonderful world.