Hey There, I'm fairly new to the market, and certainly no techy, but I've recently started mining BTC.
So far it's producing as planned, but while trying to predict how long it will take to mine enough BTC to payback my investment, and trying to decide if I should invest more, I realized that sometime around the end of next year (right around when I'm thinking I'll break even), the block sizes being mined will split in half to 12.5BTC each, as they did in 2012 from 50 to 25.
Does anyone have any insight into what this will mean for the value of Bitcoin and the profit of mining? Is the value likely to rise as new bitcoins become more scarce overnight, or will my mining profits simply be cut in half, making it no longer viable?
The value is likely to rise but mining won't necessarily become more profitable because mining speculators will likely account for such expectations thus increasing difficulty and mining costs.
The question you should be asking yourself is if purchasing the bitcoins directly vs mining will be more profitable. Purchasing bitcoins now is very likely to be a good investment. Mining profitability more has to deal with whether you make a very sizable multimillion dollar investment , you have access to free electricity, or you have perfected some new efficiency methods in cooling or upkeep.
