Topic: Is traditional mining dying? (Read 925 times)

there are a lot of degenerates out there with GPU's and new degenerates who just learned computers. mining might be dead for some but it is a huge world we live in folks 

I agree. But it is not just the big-time miners and data halls. It is Canaan and Bitmain as well, taking huge risks on their on data halls and 5nm chips by Q1. I mean I kinda get

HODL'ing BTC at this time, before halving. But sh*t, it is like anyone Whale with really big BTC hoards has drunk the kool-aid and is balls to the walls on equipment.

Indeed I would expect such equipment to be above 3.25k at least! For what a 15% improvement over 7nm?

Also, from what I can tell, (correct my math please if I'm way off), you will need like a BTC price of at least $10,500 USD at halving, to kinda be at the same mining profitability

as we are now...or at least treading water.

Maybe it is just balls to the wall, beanie baby or dust and Charge of the Light Brigade...but it is way over the top, IMHO, among big-money players in crypto to be swarming like this.

Brad

That set me a-thinking. Who profits the most (if at all) from mining? Not the miners. But the equipment sellers. They know how to ride the cryptowave

Isn't every ASIC that is released overpriced however? Even going back to the Antminer S5 which was released during a bear market. People said it was over-priced and then they slashed prices to compete with the SP 20 miner.

Same with the miners before that the Antminer S3 and S4, they were released during a sideways market, were overpriced and most likely any home miner which bought those never ROI'd if you took into account USD fiat rewards.

I am guessing that there are farms that get these miners at a discount and they got tons of capital to run them almost at break-even and they probably only sell during a bull rally. Why they don't just buy the BTC directly I don't understand however.

What I don't understand is the big risks and doubling down by Canaan and Bitmain on 5nm chips for the next set of ASIC miners, supposedly out in Q1 of 2020!

I mean from what I read, this is supposedly a 15% improvement in speed vs electric use. So at current BTC prices, this makes little or no sense to me.

Also, I'd imagine when they come out they will be in the $3k range and a 3 month pre-order too boot. This most likely will be after the BTC Halving before they arrive,

IMHO, so 'what'? Does this mean you are going to pay this kinda $$ for the same lousy ROI as you can get now with the current 7nm machines?

Really, why bother?

With no risk/pre-order/$$$ etc, etc, for every $1 BTC you get now 'supposedly,' you would get $2 BTC mining after the block reward downturn from

12.50 BTC a block to 6.25 BTC a block. I mean it seems a lot of development costs and effort just to find out once the units arrive you are basically

running in place!

So did I miss a memo? Why is everybody from Bitmain to Canaan to whomever, losing their frigging mind and buying ASIC's at these 'dubious' prices?

Are folks really, really, that frigging sure that the halving gonna DOUBLE the BTC price in a manner that makes these 5nm ASIC units make sense?

This is like the very wealthy in the Bitcoin Universe have just lost their minds after drinking the kool-aid and are running a amuck on the sugar high.

Again, for my above reasons, what the heck are they seeing that is escaping my notice on all this?

later

Brad

couldn't be further from the truth. the graphics cards are cheaper than ever, especially used cards that can still mine and be profitable. The ROI of course is much longer these days, but somebody who owns a gaming PC can mine on it when idling and get some money back (some AMD Ryzen CPUs are rather profitable)

It's sad, but it's true that sometime you have to think and stop mining. It's hard to keep putting money to maintain your rigs working if market is too low on prices






I already stopped to waste my time looking for new GPUs or CPUs to mine, because it's the same, I can buy a strong, brand new model of GPU, mine for profit only a few days and them the market will be flooded by new GPUs, big miners are adding power/hashrate everyday

No idea why you would post Coin360 which is just a heatmap of all the market cap of all cryptos. You do realise that many of those cryptos you can't mine.

Is traditional mining dying? Yes, sort of and its because Satoshi never assumed that people would be so profit oriented and not follow his "One CPU One Vote" rule. He probably didn't expect companies like Bitmain to make an ASIC which is thousands of times faster than a GPU and probably hundreds of thousands of times faster than a CPU.

The reason why its dying is due to competition and this is how it is in most fields. We might get another shot at mining if ETH switches to ProgPOW and many of the ETH ASICs leave the network but who knows if that ever will be implemented.

From that time each time you've heard about new gpu's you'll be interested to learned how big the profits it can bring you. Buying whenever you already afford and upgrade your rigs, many small time miners gave up and accept the fate of this business.

Nothing is working especially if you are in the place where electricity is too expensive.

This is true. However now that mining is more understood, easier to setup and known by more of the masses, it will never return to the era of niche users who had the time/patience/knowledge that preceded the 'normies' where all you needed was a rig with 2 or 3 gpus to turn a reasonable profit.

I have a friend and he has been several years to mine some altcoin. If I'm not mistaken he has do that for almost 3 years. But currently, he just selling his computer and decided to stop mine an altcoin because he just made a debt to pay electricity and he holds the altcoin that he mined in hope the altcoin price will increase a lot.

Maybe, there are some something new to get passive income beside mining. Such as being a masternode, reckon the coim who has LPOS as their system because you just need a phone to get passive income through LPOS and through POS who doesn't require a high computer level to mine.

I'm quite new on this place and just interesting how to get altcoin through staking, masternode and etc to get some altcoin.

For us, small miners, the mining is almost dead

For a small miner to keep mining, he have to pay a very low electricity rate, and to pay for investments will be a long time

I miss the 2017 where I bought my GPUs and mining the entire year, I had a lot of fun, money and hardware that I would never buy like 1080tis because of the money

Lol, That's why I'm still mining 90% of my equipment is pre 2017 bull run and payed off long ago.   

Gpu mining is unsustainable at these current rates, only reason the difficulty is so high is from all the roi'd equipment from the past cycle.  The farms and home miners are hanging on hoping for another bullrun, but they will exit eventually when their equipment fails or becomes obsolete over time.  So that is what it is, we are in an unbalanced ecosystem currently and eventually it will correct itself but that may take years if profits stay the same.

Generally speaking I would consider the ecosystem in balance if payoff is 1-1.5 yrs time.

In my opinion, mining bitcoin, ether is no longer profitable at short range, although in the future 5 years mining on ASic will still pay off at current prices of about $ 7,000.

Mining will only die if crypto dies, bear market = low profits, bull market = big profits.  Mining isn't always going to be good it follows the markets ups and downs.  If you have low electrical cost and you bought your equipment at decent prices you can scrap by.  

that will not work when you are doing mining in the high difficulty. that will force you to put more and more GPU to increase your profitability. The new GPUs don't give you a lot of profit. Especially when such coin gets halving and that means the reward will be decreasing again and that's the end of era for mining (small players).

Traditional mining does not die only if it is done now instead of adding profit but increases the loss in electricity paid but the result is not enough to cover it. Reasonable only when BTC rose from the last year was too little that mining because of the generated hash a bit and switch to the mining cloud even at risk.

Ordinary miners just can't keep up with the growth of large miners because they will allocate few percents of their earning to expand their mining rigs using the latest technology, therefore, the difficulties after 2006 blocks will be adjusted and that will takes up a huge portion of the small miners earning. The small and traditional miners are just waiting for the time to get bankrupt because they couldn't handle the expense and maintenance fees which exponentially increasing alongside the inflation over time.

I expected some will be disappointed but the truth is the mining difficulty is quite increasing the only way to still gain profits is to set a large scale mining or deploy powerful and many rigs to be able to gain a stable one. The mining will die for those who do personal mining alone cause you can't sustain the expenses that also arises from it. But for large group that mine there is no problem cause they still can earn and leverage the expenses by quantity.