Topic: Is it possible that number of miners will decrease for a while? - page 4. (Read 702 times)
There is possibilty, if bitcoin price still go down even after the halving event then few miners would leave mining especially those are small miners. Because their production cost will not reduce, so since mining reward will be half their profits will lower than before halving. But if they expect not to sell their reward and wait for high price then likely they would continue mining and hold rewards. The problem is some countries electricity bill is quite high so they would forced to leave if there is not enough profits. However, we might see the results within couple of days.
It will be a choice of these miners either to stop or carry-on after the bitcoin halving. Candidly speaking, those with a minimal profits would like to stop their operations due to their take home packages compared to the early days of mining Bitcoin. I would advance these miners to always put first the interest of Bitcoin than just aiming at the profits with passion. Also remember that, the value of Bitcoin will now move above the former and will now be profitable than before as time goes.
It depends on each miner. Basically, the amount of Bitcoin mined will be halved in the same period of time. For some it can still be cost effective, with professional equipment and confidence in the potential of BTC. Others will give up. But I think most will not give up because they knew when they bought their mining equipment that BTC will be reduced by half every 4 years. Bitcoin remains a goldmine for crypto enthusiasts.
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.
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.
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.
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?
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