Topic: Is it possible that number of miners will decrease for a while? (Read 702 times)
That depends on some factors and what kind of miners you mean. There is a rise in the number of people who mine at home at the moment and that's why GTX1080, RX580 and others are pricy lately. But, when more people join the mining process, the higher the difficulty gets. But, average Joe can only buy miners and GPUs that companies manufacture and here we will the declining number of "at home" miners. Companies like Bitmain, BitFury and others will manufacture better equipment for them (everyone knows how shady Bitmain is), on another hand, mining has turned into commercial business, so, the number of miners will decrease.
December 24, 2020, 05:20:09 AM
Most likely this is going to be so in the future unless the price of Bitcoin is really soaring to make it still valuable to mine bitcoins. The cost involve needed to set up a mining rig is very high and if the price of bitcoin does not move along with it in the future some miners would definitely have to drop out since they can't keep up with the cost involved.
It will definitely be in the nearest future. At present, the strength it take to mine Bitcoin has increased drastically compared to these days when Bitcoin was just 2-5 years of age, there is a higher possibility that when things get harder in Bitcoin mining thousands miners won't be able to make their ways up there in terms of mining Bitcoin. 
December 24, 2020, 05:01:09 AM
In my opinion, it is really a big possibility that many small scale miners will stop mining, specially if the cost of mining the bitcoin is higher than the profit one would get in selling it. Also if there is no good bitcoin infrastracture within the area so one can sell their bitcoins to fiat currency and use that to pay for the equipment and the electricity, then rest assured even the bigger mining operation will cease. Hopefully it will be good in the near future.
December 23, 2020, 06:47:55 PM
Oh it's definitely possible, probably until the price goes high enough for bitcoin to be worth mining again. Especially for the small-time miners who has significantly slimmer profit margins compared to the big-time miners. In fact, this is what I assume will happen as it's the most likely one in my opinion. I don't think it's likely for bitcoin to rise in price in the short term.
what is the break even point for miners considered now? I know the cost of electricity is a big variable, but at 20K+ most would be still be positive? does that mean more miners are entering the market? December 23, 2020, 06:26:08 PM
Time will come that there will be fewer miners since each year it is getting harder and harder to mine Bitcoin. We all know that it cost a lot to mine and the supply is getting lesser. If a miner has complete set, they can sustain to continue. There is fewer reward miners are getting each year, the only way to avoid lesser reward is to change the coin they are mining. Small miners tend to choose another coin since bitcoin is giving lesser reward compared to other coin.
December 23, 2020, 01:44:55 PM
With the recent halving of block rewards, the incentive will be lower than previous for miner. On the other hand, the cost for them will still be same which may not be profitable for a while (I'm not sure about this). If it is true, is it possible that some miners will just leave mining for a while until they get back in a equilibrium or in profit? What fo you think?
Maybe this would just call for some miners to look for a way to upgrade their current setup's since even though the number of blocks being mined is increasing, the need for more Bitcoin is also needed since this is the way that they will gain profit. They will have to sacrifice some time to at least get an upgrade if they want a better profit and I guess that would be the decisions of most users with mining equipment.
Most likely this is going to be so in the future unless the price of Bitcoin is really soaring to make it still valuable to mine bitcoins. The cost involve needed to set up a mining rig is very high and if the price of bitcoin does not move along with it in the future some miners would definitely have to drop out since they can't keep up with the cost involved.
Oh it's definitely possible, probably until the price goes high enough for bitcoin to be worth mining again. Especially for the small-time miners who has significantly slimmer profit margins compared to the big-time miners. In fact, this is what I assume will happen as it's the most likely one in my opinion. I don't think it's likely for bitcoin to rise in price in the short term.
That’s the whole point here. Halving is not first time now and miners already know how they can get the profits, by waiting and turning the purchase-to-cost ratio upside down.
For small miners this is the only option and for mega miners they will survive with block reward itself considering the high value of btc right now.
If we are describing normal situation (not a china mining ban or maybe cataclysm) i dont think that we can see significant miners quantity drop. They will rather swtich to another currency
If it is true, is it possible that some miners will just leave mining for a while until they get back in a equilibrium or in profit? What fo you think?
Yes man that's true. If the price doesn't increase, then the space won't accommodate small miners who can't keep up with the expenses of mining. I even read an article that some old miners are no longer able to mine Bitcoin, which means that the miners will have to throw those away, because they are now a piece of junk. When these miners drop out it might affect the market a little bit, the price will drop to an extent, and when demand starts increasing again then it will go up and be able to cover up the expenses for these miners.I don't think it's likely for bitcoin to rise in price in the short term.
Anything may happen. As of now, new people who think about starting mining business, might go for buying bitcoins rather than mining. Existing miners may go for cost cutting like they may not sell more number of rewarded bitcoins but only the rewards which will cover their running costs of mining process. So, everything may work in the same direction which means rise of bitcoin prices in very short periods.
if the price continues to be at this time, the Bitcoin miner will decrease...
the division of the reduced reward block is not good for small miners. and actually a small Bitcoin miner doesn't need to bother thinking about this, all they have to do is change the coins they mine and their problems are over cmiiw.
the division of the reduced reward block is not good for small miners. and actually a small Bitcoin miner doesn't need to bother thinking about this, all they have to do is change the coins they mine and their problems are over cmiiw.
Theoretically, The number of miners will decrease. The reason is because when you own a mining farm as a business but you discover that your profit is far less than your expenditure, It is either you shutdown the business or look for a way to lessen your expenditure in such a way that your profit is greater than your expenditure. Decreasing miners reward will make some of them stop mining and venture into another business or look for a way to further reduce the cost. For instance, using renewable energy to generate electricity to mitigate electricity cost. This thread here https://bitcointalk.org/index.php?board=14.0 will further enlightened you about some of the challenges the miners are facing especially at this moment
Yes, it's totally possible.
Because of the halving, the reward after each block is highly decreased. Too many Bitcoin miners will leave the mining world completely and some others will wait for the new devices. that's why number of miners will decrease temporary and just for a while. However after the release of new generation devices they will come back.
Because of the halving, the reward after each block is highly decreased. Too many Bitcoin miners will leave the mining world completely and some others will wait for the new devices. that's why number of miners will decrease temporary and just for a while. However after the release of new generation devices they will come back.
With the recent halving of block rewards, the incentive will be lower than previous for miner. On the other hand, the cost for them will still be same which may not be profitable for a while (I'm not sure about this). If it is true, is it possible that some miners will just leave mining for a while until they get back in a equilibrium or in profit? What fo you think?
Generally majority has that perception that the halving will affect the reward and also believed that most miners will drop for a while but with my observation and the current rise in the price of Bitcoin, I doubt if the halving will have that much effect on miners as the price of Bitcoin recently is encouraging and majority will still stick to mining
With the recent halving of block rewards, the incentive will be lower than previous for miner. On the other hand, the cost for them will still be same which may not be profitable for a while (I'm not sure about this). If it is true, is it possible that some miners will just leave mining for a while until they get back in a equilibrium or in profit? What fo you think?
Maybe that would happen, or maybe it will not. The price has been going up recently after the halving, and if it should increase, then the miners will continue with their mining and be able to cover up for their expenses.When there will be a problem is if the price should keep declining instead of increasing, then a lot of miners will have to quit and wait till things get better before they will get back. And if these miners should drop out, it might have some effect on the cryptocurrency market and the price might fall. I don't really hope for that to happen.
Mining might not be so profitable for some miners now after halving so it's likely to happen.
Perhaps, if they are still getting profits, they will still continue mining, but I am pretty sure that hardware impacts their decisions as well, according to this article: Mining rigs that are old enough, isn't as effective as those that are new, built more efficiently. This means that these mining rigs aren't gaining profit because of the huge consumption of electricity, unless, if there is free electricity. In addition, bitcoin rewards decreases significantly, pushing the miners away and it is really happening.
Mining might not be so profitable for some miners now after halving so it's likely to happen.
Perhaps, if they are still getting profits, they will still continue mining, but I am pretty sure that hardware impacts their decisions as well, according to this article: Mining rigs that are old enough, isn't as effective as those that are new, built more efficiently. This means that these mining rigs aren't gaining profit because of the huge consumption of electricity, unless, if there is free electricity. In addition, bitcoin rewards decreases significantly, pushing the miners away and it is really happening.
If this only the reason to put them on the work, those small scale miners will collapse.
The reward given to miners will be divided into two that is, Miners used to get rewarded with 12.5 BTC but this time it will be 6.3 BTC so the benefit is low and can discourage some low-level miners that are just new to the business and can't make enough profit out of it. Because of the electricity consumed and the number of mining hardware in their possession. It is sure to know that the people that have been mining consistently will know how to do their plus and minus. This is the third time miners reward is being divided. So people that know the business will still be available while those who are new may not be familiar and leave. Just know that some miners will drop.
Beginners didn’t really join in independently mining. But it is natural that a certain number of miners are likely to turn off. Mining might not be so profitable for some miners now after halving so it's likely to happen.
Perhaps, if they are still getting profits, they will still continue mining, but I am pretty sure that hardware impacts their decisions as well, according to this article: Mining rigs that are old enough, isn't as effective as those that are new, built more efficiently. This means that these mining rigs aren't gaining profit because of the huge consumption of electricity, unless, if there is free electricity. In addition, bitcoin rewards decreases significantly, pushing the miners away and it is really happening.
if you imageing the hashrate as
140exa|/\/\/\/\
080exa|XXXXX
000exa|XXXXX
the group of variable miners at ~90-140exa(/\) are the hobby miners that only mine when its profitable. they bought equipment at retail prices and pay domestic electric prices
the group of fixed miners at 0-80exa(X) are the mining farms. they always mine no matter what. they create miners at wholesale/manufacturing price and buy electric allocations in bulk from the grid cheaper.
if we start to see the hashrate drop below 80-90exa then that means even the mining farmers cant cope.. i dont see that happening. they already paid their bills so they can last a lot longer until their next contract(facility lease and electric auction) so i dont see it dropping below 80xa again.
they after all have to mine. as the electric costs are already paid for and they now have to mine to be able to stock up on coins to buy the next years batch
hobby miners however have to mine to instantly sell to pay their weekly/monthly bills. so they will always be more variable and more reactive
140exa|/\/\/\/\
080exa|XXXXX
000exa|XXXXX
the group of variable miners at ~90-140exa(/\) are the hobby miners that only mine when its profitable. they bought equipment at retail prices and pay domestic electric prices
the group of fixed miners at 0-80exa(X) are the mining farms. they always mine no matter what. they create miners at wholesale/manufacturing price and buy electric allocations in bulk from the grid cheaper.
if we start to see the hashrate drop below 80-90exa then that means even the mining farmers cant cope.. i dont see that happening. they already paid their bills so they can last a lot longer until their next contract(facility lease and electric auction) so i dont see it dropping below 80xa again.
they after all have to mine. as the electric costs are already paid for and they now have to mine to be able to stock up on coins to buy the next years batch
hobby miners however have to mine to instantly sell to pay their weekly/monthly bills. so they will always be more variable and more reactive
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