Is halving a big damage to mining pools? - page 2.

Jating

hero member

Activity: 2842

Merit: 772

Quote from: BlackHatCoiner on May 13, 2020, 04:35:35 PM

Year 2020. In these days there are no people who mine blocks by themselves. As I can see only mining pools generate the new bitcoins. Therefore, halving their reward might be a little damaging... Do you think that this will be a reason that bitcoin price will increase? Due to the law of demand and supply?

I believe it will surely increase but not above 15000$. If the price had to be doubled on each halving then it would be a bubble again like back in 2017.

Now, your thoughts.

It is going to be survival of the fittest here, if you have old rigs then definitely you are not going to survived at there will be no profits for you. However, I think those miners have prepared themselves for the worst. Heck they could have been preparing this for years ahead and slowly migrating their old hardware to the new one to be able to cope with the difficulty.

stompix

legendary

Activity: 2912

Merit: 6403

Blackjack.fun

Quote from: mu_enrico on May 14, 2020, 05:21:16 AM

Mining pools (per se) are just computer server that distribute the work to the miners. I think the miners will get the blow by reward reduction, not pools.
From this $10K BTC price currently, the situation is like $10K/2 = $5K pre halving. So if miners can't survive $5K pre halving, they will turn off their farms.

Pools are living off the fees, if they were getting 1% of the reward before the laving they were getting 0.125 now they are getting 0.062.
It's the same as credit card purchases if the shops get hit with a 50% drop in sales, so will the payment processor who is seeing less volume and less income.

So, basically pools will be hit just as hard as miners.

Febo

legendary

Activity: 2730

Merit: 1288

Quote from: BlackHatCoiner on May 13, 2020, 04:35:35 PM

Is halving a big damage to mining pools?

Only thing to damage mining pools is if someone hack them and steal their bitcoins. But that is danger of any centralised Bitcoin service. They need to work on the security a lot.

davis196

hero member

Activity: 3164

Merit: 937

Quote from: gentlemand on May 14, 2020, 05:31:22 AM

Quote from: BlackHatCoiner on May 13, 2020, 04:35:35 PM

As I can see only mining pools generate the new bitcoins.

All pools are are administrators and distributors. Some may mine themselves. Others won't even have one laptop allocated to mining. And if a mining pool goes down or looks like it's trying to screw Bitcoin or the miners who are using it then it'll be abandoned en masse and be forgotten.

Miners are service providers to users. Pools are service providers to miners.

That's right and I think that we should stop with the BTC halving discussion.There's nothing new that we could add to the discussion and asking such "Will the halving damage the BTC miners?" or "Will the halving damage the mining pools?" questions is pointless,because nobody can give a clear answer now.The Bitcoin halving is behind us and we will see the impact of the halving over miners and mining pools in the next few months.
By the way,this thread doesn't belong to the Speculation forum,since we don't discuss the BTC price.

gentlemand

legendary

Activity: 2590

Merit: 3015

Welt Am Draht

Quote from: BlackHatCoiner on May 13, 2020, 04:35:35 PM

As I can see only mining pools generate the new bitcoins.

All pools are are administrators and distributors. Some may mine themselves. Others won't even have one laptop allocated to mining. And if a mining pool goes down or looks like it's trying to screw Bitcoin or the miners who are using it then it'll be abandoned en masse and be forgotten.

Miners are service providers to users. Pools are service providers to miners.

mu_enrico

copper member

Activity: 2324

Merit: 2142

Slots Enthusiast & Expert

Mining pools (per se) are just computer server that distribute the work to the miners. I think the miners will get the blow by reward reduction, not pools.
From this $10K BTC price currently, the situation is like $10K/2 = $5K pre halving. So if miners can't survive $5K pre halving, they will turn off their farms.

ultrloa

legendary

Activity: 2758

Merit: 1228

For sure it has a damage since for rising up the difficulty provably the small time miner will get affected to it since it could lower down their profit and running their operations will not good since they might not gonna earn with it and I wonder on what will happen in future if all the miners will close down and hopefully this scenario will not happen towards this industry.

Darker45

legendary

Activity: 2576

Merit: 1860

There might be some shrinking of the mining pools because of miners quitting due to the reduced reward. But this is no reason for the price to increase. This may have nothing to do with the law of supply and demand. The increase in price is primarily driven by the demand increasing while the supply decreasing. And that has nothing to do with mining pools.

$15,000 is possible. $20,000 is possible. Even $50,000 is possible. Everything is just a matter of time. There is nothing that says the price will double in each halving. That depends purely on demand.

hd49728

legendary

Activity: 2044

Merit: 1018

Not your keys, not your coins!

If there are entities to be affected, they are small mining pools and small miners who don't have enough financial funds to keep mining with temp negative profits in a few months. Big mining pools and strong miners will survive and earn huge profits. I do believe it because price needs time to take off after the halving. Bitcoin has rise more than two times since its latest bottom so I am sure it will take a few months to see bitcoin rising to higher range. Despite of some months of stuck around $10k, bitcoin will do take off to the range $13k later this year.

billykannithi

member

Activity: 330

Merit: 12

I think halving will effect to mining pool because Block reward is down a half. But maybe the bitcoin's price will increase, so their profit will increase too, maybe there will balance.

BitMaxz

legendary

Activity: 3374

Merit: 3095

Playbet.io - Crypto Casino and Sportsbook

What do you mean by damaging the pool?

Mining pools are just operators who hiring miners to mine blocks. The only thing will happen after block halving is they get halved rewards per block from 12.5 BTC to 6.25 BTC.

Since block halving is done we will see some miners will exit on the market and stop mining on the pool because they get fewer rewards compared to the past. Which I think will lead to a slow Bitcoin network during transactions and the pool operators will get less and less rewards.

After the block-halving, the supply will reduce which will lead to the price increase, and demand will increase due to attractive prices increased with the help of low supply.

I don't see that it will cause some damage to the mining pools after block-halving but I think only miners who will suffer due to halved rewards they get and due to operational cost.

BlackHatCoiner

legendary

Activity: 1512

Merit: 7340

Farewell, Leo

Year 2020. In these days there are no people who mine blocks by themselves. As I can see only mining pools generate the new bitcoins. Therefore, halving their reward might be a little damaging... Do you think that this will be a reason that bitcoin price will increase? Due to the law of demand and supply?

I believe it will surely increase but not above 15000$. If the price had to be doubled on each halving then it would be a bubble again like back in 2017.

Now, your thoughts.

Topic: Is halving a big damage to mining pools? - page 2. (Read 360 times)