Topic: Is it possible that number of miners will decrease for a while? - page 3. (Read 702 times)
I agree that if each bitcoin block reward were halved and the price did not rise, many miners would not make a profit or even lose money. Which would force them to give up mining until the price increase or they find cheaper electricity to keep them from losing money.
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?
Many people forget that the BTC miners are making their revenue out of the transaction fees from transactions that were executed on the blockchain.The block rewards are just additional revenue for them.
The mining reward might be reduced,but the transaction fees remain as a relatively stable source of income.TX fees on the Bitcoin core blockchain might go up,like they did in the winter of 2017-2018.
Smaller miners will leave the mining industry for sure.The bigger miners will have to improve their efficiency and move their facilities to places that have cheaper electricity.
If there are no profit margin for the miners, then obviously they will stop simply as that.
Specially those who are mining old and inefficient mining hardware as they curtail higher electricity cost.
Of course if the price spike around the 5 digits, maybe some miners with old rigs with continue, but we can't really see where the price will be so we should expect that the pressure are strong that there's no way for them but to close and shut it down for good.
Mining today is a business, if you can't find cheap electricity then you can't survived in this game. It's just a question of how much hash-rate will come offline post halving.
Specially those who are mining old and inefficient mining hardware as they curtail higher electricity cost.
Of course if the price spike around the 5 digits, maybe some miners with old rigs with continue, but we can't really see where the price will be so we should expect that the pressure are strong that there's no way for them but to close and shut it down for good.
Mining today is a business, if you can't find cheap electricity then you can't survived in this game. It's just a question of how much hash-rate will come offline post halving.
This is very possible, especially the miners with low hash rates. The only thing that could inspire them to continue is spike in BTC price and hope (hoping that the ones they are mining today would cost a fortune later in the future). But I see majority of miners leaving when the cost is too much for them.
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?
There is high possibility of it happening. Mining is a costly business to start and it also needs a good amount of recurring cost to maintain. So if bitcoin price isn't increasing now, a lot of small miners will be forced to leave mining because it will be cheaper for them to buy bitcoins from the market instead of mining it.
However, we haven't seen any signs of it. Let's keep a close watch on the situation. It seems bitcoin won't disappoint the miners.
Possibly, YES. There are a lot of bitcoin miners who are willingly want to stop because of the higher cost and minimal salary in mining. If you're a managing costly businesses, you should know how to manipulate and maintain it properly so that you don't have any problem when crisis occurs.
Halving is approaching and obviously, most of us will become affected by this, we will suffer from the halving of supplies and hopefully the demand becomes high. Hoping that the price of bitcoin reach its all time high again after halving. We need to look for a brighter side because we will all benefit about it once that there's a growth in its price.
Absolutely that there's a probability that bitcoin miners will leave their work in order to invest in cryptocurrency rather than working hard and waste their time mining minimal amount of bitcoin. Sometimes all we have to do is good decision making and wise thinking.
It is really possible, we are here in this crypto world to earn money so we are looking for the bitcoin to go up so we can earn more, but it all depends on the thinking of person if he wants to earn money while the value of the bitcoin is high or he wants to earn money every time without thinking whether the price of bitcoin is down, it is a matter of thinking of different people in this crypto world.
Professional miners regularly pay high amount of electricity bills to keep their mining rig live and i don't think all of them will follow the way of "Mining for nothing". They have their initial and regular maintenance costs where due to halving they are not getting enough funds to backup all. So its simple that a big number of miners will shut down their rigs due to insufficient mining rewards and that will remain same until bitcoin's price show enough uptrend move. As a crypto user or trader you can stay sticky with bitcoin with the idea of supporting bitcoin but its kinda different for miners. Honestly it was expected that miner will leave the field for sometime but matter of concern is the number of miners.
We will feel that on coming weeks. A lot of miners will think if they are gonna continue or what, cause making their profit cuts in half will really affect everything and there are factors need to consider especially expenses, you can imagine your work stays the same but your profit is reduced.
Given that, the price of bitcoin never increases, but if the price could go somewhere more than 10k then maybe they will still be interested. Compensation is a must to be able to continue mining, perhaps many already stopped and sell their equipments due to this halving.
Given that, the price of bitcoin never increases, but if the price could go somewhere more than 10k then maybe they will still be interested. Compensation is a must to be able to continue mining, perhaps many already stopped and sell their equipments due to this halving.
It is really possible, we are here in this crypto world to earn money so we are looking for the bitcoin to go up so we can earn more, but it all depends on the thinking of person if he wants to earn money while the value of the bitcoin is high or he wants to earn money every time without thinking whether the price of bitcoin is down, it is a matter of thinking of different people in this crypto world. The best thing for me is to continue performing in the crypto world regardless of the value of bitcoin.
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 have 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.
Well said, there are many people who think that way, they tend to mine only when the value of the bitcoin is high but stops it when it goes down. I am a person like that before but I realized that it is worth it mining every time regardless with the price of the bitcoin. 
It's not a possibility, it's a matter of how many!
Simple basic math, the revenue is halved, the cost would have to be the same, obviously a lot of miners didn't have the cots less than half of what they were making.
You were getting 10 $, your costs were 2 $, now you're getting 5-2, still a profit.
You were getting 10 $, your costs were 6 $, now you're bleeding money so you turn off the gear.
As simple as that.
That is not a magic tool that somehow will make mining profitable again, it is designed to keep the block time, not the miner's profits. If the miners quit difficulty drops, it's tempting to go back and mine but if all do the same we're back to square one when they will again quit.
Let's wait and see how much of an impact this will have
630000 2020-05-11 19:23
630034 2020-05-12 02:12
That's 409 minutes for 34 blocks, 12 minutes on average!
Simple basic math, the revenue is halved, the cost would have to be the same, obviously a lot of miners didn't have the cots less than half of what they were making.
You were getting 10 $, your costs were 2 $, now you're getting 5-2, still a profit.
You were getting 10 $, your costs were 6 $, now you're bleeding money so you turn off the gear.
As simple as that.
Regarding in of cost in mining, Bitcoin code has a feature that automatically adjust whenever the mine block time is not reach this means if blocks is getting longer than 10 mins than the difficulty will decrease thus making miners mine faster and solved blocks and getting rewards.
That is not a magic tool that somehow will make mining profitable again, it is designed to keep the block time, not the miner's profits. If the miners quit difficulty drops, it's tempting to go back and mine but if all do the same we're back to square one when they will again quit.
Let's wait and see how much of an impact this will have
630000 2020-05-11 19:23
630034 2020-05-12 02:12
That's 409 minutes for 34 blocks, 12 minutes on average!
-ck pool has just closed their doors, so it's likely that others will follow which is a pity as it gives rise to the centralised mining that bitcoin has always wanted to avoid.
Yes it's true, but miners could also still mine other Altcoins while mining BTC.
Sure, but also take note that most Bitcoin miners are most likely using ASIC miners, not GPUs. So altcoins are automatically out of the equation. In the end, it comes down mostly to two choices:
1. Them mining bitcoin regardless of the losses, hoping for bitcoin to rise in price in the future.
2. Them temporarily(or permanently) turning off their miners.
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.
Yes it's true, but miners could also still mine other Altcoins while mining BTC. Regarding in of cost in mining, Bitcoin code has a feature that automatically adjust whenever the mine block time is not reach this means if blocks is getting longer than 10 mins than the difficulty will decrease thus making miners mine faster and solved blocks and getting rewards.
Isn't the number of Bitcoin miners already going down since the bear market? Or is it rising now?
At a time when the price of BTC was already very low, while mining operational costs jumped high, many miners then took a break and chose not to continue mining again. This is done because the outcome is bigger than the income.
See. most members in this thread also consider that there will be a decrease amount of the miners after the halving. Personally I also think yes, it will decrease. However, who knows? Crypto is sometimes full of surprise and we do not know what kind of surprise we will face in the later moment.
At a time when the price of BTC was already very low, while mining operational costs jumped high, many miners then took a break and chose not to continue mining again. This is done because the outcome is bigger than the income.
With the recent halving of block rewards, the incentive will be lower than previous for miner.
And after halving later, the amount of BTC that can be filtered will decrease. And there is a possibility that if it is operational normally it will rise again. If the number of coins mined decreases, the price of BTC goes down, while operational costs go up, then what is likely to happen is a reduction in the number of miners.See. most members in this thread also consider that there will be a decrease amount of the miners after the halving. Personally I also think yes, it will decrease. However, who knows? Crypto is sometimes full of surprise and we do not know what kind of surprise we will face in the later moment.
I was worried about that, I see an article before the halving event happeened who stated that the miner will be profitable if bitcoin price has a price around $10.000 when halving event has happened. So I just thinking that in this situation there will be some miner who leave their mining rig until the price of bitcoin back to high. They are an important part in bitcoin ecosystem because they have a function to validate every transaction but they will thinking to pay each cost if they turn on the mining rig to start mining bitcoin. Hopefully bitcoin price will increase again and reach new all time high.
There's possibility that there are miners who will stop for a while because of the btc price not showing any good movement. I was thinking that the price will at least reach the 10k level but seems that the market is not responding with this halving. Let's wait for maybe another couple of weeks, and see the aftermath, whether it will change or not.
Sorry, can you explain to a layman when the difficulty adjustments happen? I've always thought it's automatic, but can you tell me if it is?
I assume you guys specifically referring to the block halving as the difficulty adjusts frequently[1], but yes, it is automatic and it already happened just hours ago. It happens after every 210,000 blocks(which is approximately every 4 years).
[1] https://btc.com/stats/diff
I was worried about that, I see an article before the halving event happeened who stated that the miner will be profitable if bitcoin price has a price around $10.000 when halving event has happened. So I just thinking that in this situation there will be some miner who leave their mining rig until the price of bitcoin back to high. They are an important part in bitcoin ecosystem because they have a function to validate every transaction but they will thinking to pay each cost if they turn on the mining rig to start mining bitcoin. Hopefully bitcoin price will increase again and reach new all time high.
Oh it's definitely possible, probably until the price goes high enough for bitcoin to be worth mining again.
The price is already high enough for bitcoins to be worth mining. It's just a matter of which mining operations we're talking about.
The number of miners will probably decrease, but the hash rate -- that's less of a sure thing, and didn't happen in 2016.
Inefficient miners will shut down, but efficient miners may actually be adding hash rate. Until the next difficulty adjustment comes, I don't want to make any big assumptions.
Sorry, can you explain to a layman when the difficulty adjustments happen? I've always thought it's automatic, but can you tell me if it is?
Oh it's definitely possible, probably until the price goes high enough for bitcoin to be worth mining again.
The price is already high enough for bitcoins to be worth mining. It's just a matter of which mining operations we're talking about.
The number of miners will probably decrease, but the hash rate -- that's less of a sure thing, and didn't happen in 2016.
Inefficient miners will shut down, but efficient miners may actually be adding hash rate. Until the next difficulty adjustment comes, I don't want to make any big assumptions.
See what is important is not the number of miners but the efficiency of mining . The small miners do account for a 15-30% of the hash rate and therefore when the halving happens , they will for sure decrease for a while and therefore for a little while we will see 15-30% decrease in the hash rate making the network more vulnerable for a while.
The small miners won't be able to pay the huge electricity bills for the machine since the block reward would be literally cut in half .
Plus Miners won't actually influence the price , so people who are writing how it will decrease the price I do not think it is true , the price will be same and the only problem we will face is in the hash rate which will quickly go up since the the huge miners would be able to back it up pretty quickly . It's like more job opportunities for them .
The small miners won't be able to pay the huge electricity bills for the machine since the block reward would be literally cut in half .
Plus Miners won't actually influence the price , so people who are writing how it will decrease the price I do not think it is true , the price will be same and the only problem we will face is in the hash rate which will quickly go up since the the huge miners would be able to back it up pretty quickly . It's like more job opportunities for them .
Ofc it will decrease, but the question is by how much. I personally don't believe it will be anything significant, we had a ton of hashpower when the price was at $3,000 level and it kept growing. Perhaps the price was growing faster than the ASICS were manufactured, so the mining was never fully saturated, and halving won't cut miners in half too.
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