Topic: Bitcoin Miners Face Leanest Month of 2024: August Earnings Hit Year’s Low - page 2. (Read 674 times)

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.

Hehehe...I honestly like to read news like this and I've been following similar ones since 2 months ago, it means that the low fee is so biting this time, miners should get used to it, this is what the system should look like. Mind you, the low revenue for the miners doesn't mean they are still not doing well, they are "big boys" who have tried all they could to gain more in the past, so let the low and insanely high earnings of the past complement each other. They should also know that this is the consequence of the high rate due to the past congestion, it has already pushed many to altcoins for fast transactions and low fees, and many are not returning to Bitcoin again which causes all these. They never thought of the future but were particular about the present gain then, let them get used to it and I hope it lasts.

Regardless, my responses to the above are;

1. It can never be constant
2. I guess it will be moderate
3. Bitcoin will always be decentralised.

?

That has nothing to do with how high or low fees are. Fees go up or down depending on network demand. But what actually more cost-efficient miners mean during the current period of "low profitability" in Bitcoin mining is, it will be harder for the less-efficient miners to profit or to break-even. They will either need to turn off their mining farms or migrate to a region where they could mine using cheaper electricity.


 

This was given to me when I was a newbie, now I'm giving it to you.

Well it makes sense that August prices were the lowest of the year. It always seems to be like that every year. September too. But hopefully something happens on October because I'm not very happy to see Bitcoin under $60k for long 

so does that mean transaction fees are going up or down? that's all i care about.


why would you say that? fees are an important thing to keep under control. unless you want a system where only rich people use it.

Has everyone heard the news? I believe the leanest month will get a leaner month sooner or later for less-efficient miners.

👀

Japan's largest electricity company will build a facility to use renewable energy to mine Bitcoin.


 

Low fees was the "core promise"? Laughable. Who said that? Roger Ver?


 

If that's the actual "bare minimum", then why hasn't BCash "onboarded millions"?

Plus your post getting a merit from OP is also laughable.

Even in the future it's impossible to get them all especially to the low fee demands. Technically aware, 19.5 million out of 21 bitcoin has been mined and since miners has been playing fundamental roles in the bitcoin blockchain,  some few factors is considered against the future pertaining how miners could also be rewarded.
That's why we can't get less than expected on the transaction fee as it's a reservoir to encourage continuities to revalidations of certain criterias in the cryptographical context.
So, the crucial roles of miners rewards in the future can't be comprehend when all 21 million bitcoin has been mined.

We have all 3 of these right now -- why wouldn't we have it in the future?

High hash rate is the least important. Bitcoin's hash rate is so absurdly high that new scientific terms needed to be created to measure it. Whoever can mine BTC with the cheapest electricity wins.

Yes, I also use the same method when the Bitcoin network fees are somewhat high or there is a time delay in transactions, where sometimes I use LTC or some other altcoins in order to reduce the fees and get a fast transaction.

Many people have started using this method when the network is congested and the fees are high, some of them also prefer to keep the high-value Bitcoin for the long term instead of wasting it on simple daily transactions.

The fees are not that high as long as I see 0.80 dollars a fee to be included in next block which is usually ten minutes or less as not big at all and a fair price to be paid to use this wonderful technology of money. I strongly agree with keeping security at the top and keep things like we have now. I know mining is game over from a long time and that August month is only something below average and normal beside some few months before. I personally love Bitcoin but have to be honest, some altcoins like Litecoin has a much lower fee and a much faster confirmation in the network, it is what I use in my gambling activities as I don't like that much to wait while Bitcoin is the main currency to use as a store of value, meaning keeping the amounts when the new all time come in this currency.

Decentralization with low fees was the core promise of Bitcoin and not getting that would mean we have failed. Imo, those are the bare minimum requirements that we need for Bitcoin to onboard millions and also be the store of value that it has been regarded as in the past. If we want to onboard everyone, fees have to stay low, possibly lower than current tx fees and transaction confirmations needs to happen quickly. I still wonder how we would fair when there are no block rewards to compensate for low fee months like August 2024.

For me I would choose decentralization with low fees much better than centralization with low fees. I wouldn't choose centralization even without fees.

Decentralization and network security must have a price which is high fees, in any service on the ground you need to pay more additional fees to get a good service, so personally I don't mind miners getting some additional fees (within the acceptable limit for everyone) to continue decentralization and ensure network security.

Feels like we are already getting all three? It's not centralized so we are decentralized and that's a good thing, we do have low fees at the moment as we can see from miners making very little as a proof too, and we do have a good high hashrate at the moment as well, it's enough and we do not need more to be fair.

That means we just need to consider how things are not always the same and we can do whatever we want to do with miners. They are not the ones who are ruling the currently system, it is us that decide what's going to happen and because of that I believe that we are going to be fine about this, there is no denying that at all, we need to be just happy with what we have, and as long as we are happy with it, we shouldn't have a problem.