Topic: Is it possible that number of miners will decrease for a while? - page 2. (Read 702 times)

Probably it is possible because we all know that mining is much more expensive compared to the bitcoin's price that can be cheaper due to the halving effect. Many miners will surely invest in using crypto instead of mining because the incentives are also important. It will not be profitable for them as they see that costs in mining will become more higher compared to the mining costs before halving. It will surely give you lesser amount of profit and that will make you lose the advantages of mining. I know that many former miners will invest in bitcoins because they will see that it is much more profitable than mining. That's a good option and choice to do, investing in cryptocurrency will really make you more comfortable with your business and work.

Believe most expert opinions out there points to a few observable trends and predictions:

1) Mining operations will fall after the halvening (some reports has indicated around 30% has already shuttered - especially those on older antminers)
2) For mining operations to continue, the price needs to be stable at above US$10,000, or thereabouts, depending on other factors below
3) Mining operations using newer equipment (that has lower wattage use and a larger hashing rate) would be able to make a profit (albeit smaller now)
4) Mining operators would be forced to join resources to spread out liabilities and risks (Especially when it heads towards subsequent halvening)
5) Mining operators in countries with low electricity cost, high security, and minimal government intervention will survive
6) Probably only if technology progresses quickly enough would there be opportunity for mining operations to thrive
7) Government subsidies (if any) also poses an avenue for mining operations to survive
In the future (not too far from now), when all the bitcoins are mined, all operations will seize/close down except for the largest mining pool to process transactions (by then, with the monopoly in place, transaction fees will be high)

The good news is, as we continue to mine, the BTC prices will fluctuate less, and the rarity factor will soon make the price rise due to demand and hopefully attain its full market capitalization potential.

Those who have a small number of miners might be forced to stop mining since the block reward had been reduced by two. Mining will not be sustainable if you will have a small number of miners, so I guess those who have big farms will only be left mining bitcoin. A huge decline on the number of miners is possible to occur.

That's right a few miners will leave mining, because the rewards are reduced while the cost is still same. Make mining not profitable anymore.
This is very heavy for small miners who before halving profits are small, for big miners there may be some that are still running. Actually, if the
price of bitcoin can rise dramatically, the rewards obtained can cover costs. Then small miners can survive. The problem is now the price of bitcoin
hasn't gone up and it still looks stable.

I'm pretty sure there will be a decline in the number of miners as the mining industry players have been complaining for long about low profit earnings for so long owing to the fact that the resources requirement for minig  is costlier than the profit yield margin and that's why we've seen mining turn to such a bit monopolized market by mining giant companies. So getting half reward without any price increase to the value of bitcoin will surely make a lot of miners abandon mining

I am expecting some miners shutting down the machines until the price starts rallying, but i am not certain about the break even point for miners for them to shell out money from their pocket, suppose the break even is not that great most of them will wait till the market moves higher, but big farm houses does not usually cares about having minor losses as they are certain that the market would bounce like it used to do in the past.

I don't think so it's a good logic that some miners will be left because of not expected value of btc after halving. There are many giant company mine btc and don't you think they can hold recent rewarded btc for better value for future. But if we would talk about small miners then it would be possible. But as i said before in my opinion it's not a good idea to leaving mining because of recent value cause we can all assume that how much far can go btc price.

If reward from mining decrease little maybe miner will leave crypto and keep going on with good project by investing and trading than have buy mining tools with higher price, but if bitcoin reward higher for miner they will keep continue for mining.

Block generation sped up overnight. Now we've seen 135 blocks in 1365 minutes, which is just over 10 minutes per block.


The difficulty adjusts every 2016 blocks. It's only "automatic" as long as miners keep mining.

Not only the small farms will be affected on this halving, but we can also say the miners will get the half of the reward while the energy cost is the same, this factor will make a lot of miners inefficient, and it will be cheaper to turn them off than pay from your pocket the maintenance cost.

Yes, I think so. The miners who have low hashrate will decrease during the halving because the process to mine will need a big hashrate to find the block. But if the bitcoin price can increase up to $10k-$15k, perhaps, they can start mining again, but I don't think that they can get a big reward or they can find the new block. But I don't know much about that since I don't mine bitcoin anymore. Perhaps, the miners will search for the other coins to mine because they don't have a big hashrate to mining.

If you check in the past, the miners were running the machines when the price was around $200 and the general price of things, especially the hardware and electricity has not increased considerably in the past 5 years and now the price of bitcoin is over $8800, so you can compare that and come to a conclusion. The small mining farms might have a difficult time maintaining everything because of the rise in difficulty but the big farms will always sustain.

Yeah, the only way to keep mining after halving is to buy updated equipment and find a cheaper source of electricity. Well this is a disaster to small miners they are forced to buy new devices, yet they cannot sell their old equipment in such reasonable price since it is degraded by now. On the bright side, they can focus on mining different coins but it comes with a lower reward compare to what they are getting with bitcoin. The competition in mining now has raised the level by bitcoin's protocol this is how good that coin is.

what you mean may rise or fall ?  electric cost had never been lowered but its possible that they will be highered the longer the days have been running because the cost for materials and labor are also getting expensive  .

still there are places that electricity are not really expensive so i think miners on these area wont care too much  about the halving   .  my question is that how do we know what the number of miners are decreasing or not  , is there a tool to detect that  ?  

Mann, if you see the BCH mining activity it goes skyrocket after the halving! I am sure that many bitcoin miners are mining other coin now cause of the halving. Lot of small time miners will transfer and going to mine other coin and maybe they are going back to bitcoin if the price goes up and it will be profitable again. But yeah, after I see the BCH mining activity and the sudden increase of miners of that coin, I am sure that most of them are mining bitcoin before the halving.

It is very possible and it has been happening.

The cost may rise or fall. The main cost there is the regular or non-stop electricity that miners need. But that is not something they cannot do anything about. They have certain options to counter it. But as to whether they will continue surviving with a profit despite the just implemented inflation of rewards, they will see in the next month or two.

Most miners are kind of investors, they invest because they have profit from mining. No one would mine if they had loss from it. If the price goes below, I'm sure we will see less number of miners in the chain. This may give you a good idea about it- https://tokeneo.com/bitcoins-hashrate-has-fallen-by-40-this-month-btc-miners-to-capitulate/

I dont think there's a way to find cheaper electricity but there is always a new mining machine that suitable that makes miners didn't give up.

In OP question, yes, it is possible for small miners may not afford the expenses for s short period of time and the same as what happened in the previous halving. The mere fact that small miners will stop mining it is possible that through this it may help pump up the bitcoin's price because of the low availability of bitcoins in the market. Anyway, once the Bitcoin price pump again then rest assure small miners will go back and start mining again aside from those big mining companies.

Anyone knows with what bitcoin price / hardware / electricity cost it has become unprofitable to mine after yesterdays halving ?

Aftermarket gonna be filled with used, but still in good shape (or almost new) hardware. I'm going to make a PC upgrade and is planning to buy a GPU unit from a miner that cant afford to mine since today. What do you think, should I buy GPU from a miner that bought hardware, lets say few months ago, but due to 2020 halving turn off his mining rig ?

Cheaper electricity and new mining hardware to be able to cope with the difficulty. It make me think as well that if it's no longer profitable to mine bitcoin, there is also a possibility that they could mine other altcoins as well just to be make profit out of their old and outdated mining equipments. And if bitcoin price rises, then they switch back to bitcoin. I'm not sure what will be the price today for miners to at least break even though. So there are a lot of pressure now for miners, to sell their coins in order to  buy new equipment. Or probably it already happened.