Bitcoin mining is doomed ! - page 3.

Voltarius

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Quote from: alh on January 05, 2015, 12:46:00 PM

Quote from: hedgy73 on January 05, 2015, 02:01:02 AM

Not only will difficulty continue to increase but block reward will halve again to 12.5 towards the end of the year from what I understand.

I think the next "halving" will actually be in 2016. Since it's "block count" based, it's date is determined by the pace at which blocks are mined. The last estimate I saw was July 2016, but if difficulty continues at this pace (meaning mined faster than "desired"), that will probably pull it earlier into 2016.

I think that's what he was meaning, if the difficulty keeps doing what it's doing combined with people gaining more miners that has such a high hash-rate, it may push the block rate to go faster than people want, making the block half faster than what we anticipate.

alh

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Quote from: hedgy73 on January 05, 2015, 02:01:02 AM

Not only will difficulty continue to increase but block reward will halve again to 12.5 towards the end of the year from what I understand.

I think the next "halving" will actually be in 2016. Since it's "block count" based, it's date is determined by the pace at which blocks are mined. The last estimate I saw was July 2016, but if difficulty continues at this pace (meaning mined faster than "desired"), that will probably pull it earlier into 2016.

hedgy73

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Not only will difficulty continue to increase but block reward will halve again to 12.5 towards the end of the year from what I understand.

Voltarius

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Quote from: alh on January 05, 2015, 12:23:25 AM

Quote from: resya on January 04, 2015, 06:06:08 PM

If difficulty doubles, it means that effectively the value of bitcoin mining equipment is cut in half, which means that either the price of bitcoin needs to double, or machines need to get cheaper

I would also add that besides the value of the mining equipment is "cut in half", more importantly the income derived from it is cut in half. This matters a great deal to some folks in that their expenses to actually run the mining equipment (e.g. electricity, salaries, rent) may exceed the income. That's when folks are actually losing money the longer they run. For some operations that can't be done for long.

What were to happen if someone was putting on a machine onto the BTC network that would put the next difficulty up 15% or more, what would happen then?
I feel that it's had to happen a lot, but I've never really looked into it very much.

alh

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Quote from: resya on January 04, 2015, 06:06:08 PM

If difficulty doubles, it means that effectively the value of bitcoin mining equipment is cut in half, which means that either the price of bitcoin needs to double, or machines need to get cheaper

I would also add that besides the value of the mining equipment is "cut in half", more importantly the income derived from it is cut in half. This matters a great deal to some folks in that their expenses to actually run the mining equipment (e.g. electricity, salaries, rent) may exceed the income. That's when folks are actually losing money the longer they run. For some operations that can't be done for long.

sase007

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resya

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If difficulty doubles, it means that effectively the value of bitcoin mining equipment is cut in half, which means that either the price of bitcoin needs to double, or machines need to get cheaper

cyberpinoy

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Mining is not dead for the right people. the ones who care about thier business as a long term income generating business. But the difficulty will slowly flatten out or maybe even go down if enough miners get out of the game. Specifically miners who do not sell thier equipment for others to purchase loosing money in the sale but rather just shut them off until Bitcoin goes back up

this way people are not just passing Hashpower around but completely removing it from the network for a while.

wpgdeez

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Quote from: philipma1957 on January 03, 2015, 03:35:14 PM

Quote from: Biodom on January 03, 2015, 02:51:22 PM

Quote from: philipma1957 on January 03, 2015, 11:03:37 AM

Quote from: vortexz on January 03, 2015, 10:17:20 AM

1.The difficulty is starting to have huge increases again while the price is going DOWN, it already is below 300 !
2.My estimate is that next difficulty is going to be above 15 % and the others following will be somewhere around same level !
3.Soon NEXT GENERATION ASICS will be launched and the difficulty will start raising even more, we might see 30-40 % + increases in difficulty,
and the miners we bought now will be absolute, with no chance to EVER ROI.

With all these, let's just ask ourselves:
Is it still worth mining bitcoin right now ?

absolutely.

I am Looking forward to a 200 dollar coin price and 50xxxxxxx diff by my birthday the end of January.

Ask me why?

OK, why?

well I am 100% sp20. I turn a profit at diff of 50xxxxxx and btc 200 usd but many people do not make money at those numbers so i would think a diff of 50xxxxxxx and a price of 200usd would force a leveling of diff.
like we had between nov 5 and dec 30.

You don't turn a profit until you have covered the cost of your hardware and electric. When do you think that will happen?

hedgy73

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Quote from: philipma1957 on January 03, 2015, 07:59:51 PM

Quote from: hedgy73 on January 03, 2015, 06:02:47 PM

Quote from: vortexz on January 03, 2015, 10:17:20 AM

Is it still worth mining bitcoin right now ?

Its the same old story, for most people mining at home on a moderate / expensive electricity tariff its not profitable even with efficient hardware. If you have cheap electricity and efficient hardware than you maybe returning a small profit but I don't see that continuing for much longer.

Its winter here and if my miners weren't providing supplementary heating to parts of my house I'd switch them off and sell them. They are costing more to run than they're mining and that's been the same for the past few months. I don't mind at the moment though because of the heat they produce. Come the spring they're gone though it pains me to say, however electricity here in the UK is right up there with the dearest in the world.

yeah you are far higher then my winter rate of 13 cents a kwatt (then figure heat use in the winter at 3 cents) so from now until May my power is 10 cents a kwatt.

In may the summer rate is 16 cents and no heat benefit I will be done. Unless btc jumps really high in price.

It all boils down to btc price really doesn't it. Shame its so low at the moment and I don't know if it will ever go much higher, especially in the near future.

I'm running about $0.25 a k/watt which is a killer. But to be honest by running these tubes its cheaper overall than heating my office, kitchen and dining room 24/7 by alternative heating methods when you take into consideration the bitcoin return. I live in a very small cottage hence why 2 tubes heat my office and take the chill off the kitchen and dining room. Its not a big house by any stretch of the imagination lol.

philipma1957

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Quote from: hedgy73 on January 03, 2015, 06:02:47 PM

Quote from: vortexz on January 03, 2015, 10:17:20 AM

Is it still worth mining bitcoin right now ?

Its the same old story, for most people mining at home on a moderate / expensive electricity tariff its not profitable even with efficient hardware. If you have cheap electricity and efficient hardware than you maybe returning a small profit but I don't see that continuing for much longer.

Its winter here and if my miners weren't providing supplementary heating to parts of my house I'd switch them off and sell them. They are costing more to run than they're mining and that's been the same for the past few months. I don't mind at the moment though because of the heat they produce. Come the spring they're gone though it pains me to say, however electricity here in the UK is right up there with the dearest in the world.

yeah you are far higher then my winter rate of 13 cents a kwatt (then figure heat use in the winter at 3 cents) so from now until May my power is 10 cents a kwatt.

In may the summer rate is 16 cents and no heat benefit I will be done. Unless btc jumps really high in price.

hedgy73

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Quote from: RJX on January 03, 2015, 07:34:56 PM

Quote from: hedgy73 on January 03, 2015, 06:02:47 PM

Quote from: vortexz on January 03, 2015, 10:17:20 AM

Is it still worth mining bitcoin right now ?

Its the same old story, for most people mining at home on a moderate / expensive electricity tariff its not profitable even with efficient hardware. If you have cheap electricity and efficient hardware than you maybe returning a small profit but I don't see that continuing for much longer.

Its winter here and if my miners weren't providing supplementary heating to parts of my house I'd switch them off and sell them. They are costing more to run than they're mining and that's been the same for the past few months. I don't mind at the moment though because of the heat they produce. Come the spring they're gone though it pains me to say, however electricity here in the UK is right up there with the dearest in the world.

So you are not investing in new mining equipment?

How much GH/TH is your current setup doing?

No I cant afford to unfortunately, I only got into mining a year ago or so ago so missed the early easy mining. I'm running 2 x Asicminer Tubes @ 850 GH each so 1.7TH total. I could sell them and buy some S3's but its not worth the hastle for what I'd save on running costs. These tubes are running nice and steady and quiet after changing the fans which is a massive plus for me as they're in my office at home.

RJX

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Quote from: hedgy73 on January 03, 2015, 06:02:47 PM

Quote from: vortexz on January 03, 2015, 10:17:20 AM

Is it still worth mining bitcoin right now ?

Its the same old story, for most people mining at home on a moderate / expensive electricity tariff its not profitable even with efficient hardware. If you have cheap electricity and efficient hardware than you maybe returning a small profit but I don't see that continuing for much longer.

Its winter here and if my miners weren't providing supplementary heating to parts of my house I'd switch them off and sell them. They are costing more to run than they're mining and that's been the same for the past few months. I don't mind at the moment though because of the heat they produce. Come the spring they're gone though it pains me to say, however electricity here in the UK is right up there with the dearest in the world.

So you are not investing in new mining equipment?

How much GH/TH is your current setup doing?

samuel999

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Well it does waste a lot of electricity, and we've mineless coins now.

hedgy73

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Quote from: vortexz on January 03, 2015, 10:17:20 AM

Is it still worth mining bitcoin right now ?

Its the same old story, for most people mining at home on a moderate / expensive electricity tariff its not profitable even with efficient hardware. If you have cheap electricity and efficient hardware than you maybe returning a small profit but I don't see that continuing for much longer.

Its winter here and if my miners weren't providing supplementary heating to parts of my house I'd switch them off and sell them. They are costing more to run than they're mining and that's been the same for the past few months. I don't mind at the moment though because of the heat they produce. Come the spring they're gone though it pains me to say, however electricity here in the UK is right up there with the dearest in the world.

mmeijeri

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Bitcoin mining isn't doomed at all, but lots of small players will be driven out of the market.

cloverme

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Quote from: vortexz on January 03, 2015, 10:17:20 AM

1.The difficulty is starting to have huge increases again while the price is going DOWN, it already is below 300 !
2.My estimate is that next difficulty is going to be above 15 % and the others following will be somewhere around same level !
3.Soon NEXT GENERATION ASICS will be launched and the difficulty will start raising even more, we might see 30-40 % + increases in difficulty,
and the miners we bought now will be absolute, with no chance to EVER ROI.

With all these, let's just ask ourselves:
Is it still worth mining bitcoin right now ?

It's hard to say, people were thinking the same thing when the price of BTC dropped out of the $600 range and difficulty kept going up as more mining started up. One thing that I noticed is that even with the lastest asic miners, the power requirements keep going up with it. So, I don't think until the power efficiency is addressed, that the next gen asics will really impact things. I stopped mining bitcoin alone back in March of last year and started mining altcoins and buying other crypto (ripple/stellar/etc) along with it.

SeymourSkinner

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Quote from: philipma1957 on January 03, 2015, 03:35:14 PM

well I am 100% sp20. I turn a profit at diff of 50xxxxxx and btc 200 usd but many people do not make money at those numbers so i would think a diff of 50xxxxxxx and a price of 200usd would force a leveling of diff.
like we had between nov 5 and dec 30.

do you turn a profit because you're 100% sp20?

why do others don't make money at those numbers and you do?

should i buy 2 sp20's? I have 24 hours to decide.

philipma1957

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Quote from: Biodom on January 03, 2015, 02:51:22 PM

Quote from: philipma1957 on January 03, 2015, 11:03:37 AM

Quote from: vortexz on January 03, 2015, 10:17:20 AM

1.The difficulty is starting to have huge increases again while the price is going DOWN, it already is below 300 !
2.My estimate is that next difficulty is going to be above 15 % and the others following will be somewhere around same level !
3.Soon NEXT GENERATION ASICS will be launched and the difficulty will start raising even more, we might see 30-40 % + increases in difficulty,
and the miners we bought now will be absolute, with no chance to EVER ROI.

With all these, let's just ask ourselves:
Is it still worth mining bitcoin right now ?

absolutely.

I am Looking forward to a 200 dollar coin price and 50xxxxxxx diff by my birthday the end of January.

Ask me why?

OK, why?

well I am 100% sp20. I turn a profit at diff of 50xxxxxx and btc 200 usd but many people do not make money at those numbers so i would think a diff of 50xxxxxxx and a price of 200usd would force a leveling of diff.
like we had between nov 5 and dec 30.

Biodom

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Quote from: philipma1957 on January 03, 2015, 11:03:37 AM

Quote from: vortexz on January 03, 2015, 10:17:20 AM

1.The difficulty is starting to have huge increases again while the price is going DOWN, it already is below 300 !
2.My estimate is that next difficulty is going to be above 15 % and the others following will be somewhere around same level !
3.Soon NEXT GENERATION ASICS will be launched and the difficulty will start raising even more, we might see 30-40 % + increases in difficulty,
and the miners we bought now will be absolute, with no chance to EVER ROI.

With all these, let's just ask ourselves:
Is it still worth mining bitcoin right now ?

absolutely.

I am Looking forward to a 200 dollar coin price and 50xxxxxxx diff by my birthday the end of January.

Ask me why?

OK, why?

Topic: Bitcoin mining is doomed ! - page 3. (Read 5428 times)