Mining: Halving will destroy the half of us.

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Quote from: leyton11 on May 11, 2020, 08:41:03 AM

People think bitcoin halving is a good chance to speculate this year but they don't understand the nature of halving. halving the reward will reduce the miners revenue by half and keep the cost the same. If prices continue to go down, many people will be bankrupt. that will cause great damage and maybe miners will sell off their bitcoins. At that time, the market will be really bad

And you suggest what exactly?

Indeed, it is a good chance to speculate, or are you going to tell that the speculators should pack and go home? But without them the prices wouldn't be where they are now, and, quite ironically, there wouldn't be as many miners sticking around either, able to earn by the price being in many thousands. It is exactly because of the cryptocurrency speculators that mining has become profitable in the first place (and while we are at it, they have nothing to do with the halvings). In simple terms, and figuratively speaking, don't bite the hand that feeds you (i.e. open market)

leyton11

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People think bitcoin halving is a good chance to speculate this year but they don't understand the nature of halving. halving the reward will reduce the miners revenue by half and keep the cost the same. If prices continue to go down, many people will be bankrupt. that will cause great damage and maybe miners will sell off their bitcoins. At that time, the market will be really bad.

Assface16678

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Possibly the half of the miners will stop mining bitcoin because it is a huge loss to them if they got only half of the block but still it depends on them what kind of action they will do the halving is coming when it starts most of the coin is rapidly increasing and give a huge market profit but still the only thing they will get is just half of the bitcoin block it is profitable? I think yes because the halving is coming they can make more income regarding this also the halving is happening every four years and there is a huge possibility that the miners already gained a lot of bitcoin to use this on their transactions and stored wallet.

Quote from: EdvinZ on May 10, 2020, 02:10:48 AM

In any case, mining will be profitable for those who use very cheap electricity and buys mining equipment at wholesale prices with large discounts. Naturally, the big miners always win. Perhaps this is a good time for the development of services that give mining capacity for rent, where everyone can buy the amount of mining capacity that they can afford.

One thing too mining is good to the people who have low electricity charges or bills because to make more mining it takes a lot of time before they've got the block of the coin. Also, it is a huge loss to the people who have a huge bill on their electricity it goes the money to the payment, not on their wallet funds.

alexforneus

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Can halving make btc network weaker? Hashrate will drop, i guess

EdvinZ

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In any case, mining will be profitable for those who use very cheap electricity and buys mining equipment at wholesale prices with large discounts. Naturally, the big miners always win. Perhaps this is a good time for the development of services that give mining capacity for rent, where everyone can buy the amount of mining capacity that they can afford.

leyton11

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Quote from: Sanugarid on April 28, 2020, 11:56:23 AM

The halving event is coming in a few weeks, rewards for mining will decrease to half specifically from 12.5 BTC to 6.25BTC. Small miners won't be able to contain a very much low block reward it will be lesser than what they are going to spend in mining. Huge mining entities can go on while the small ones will be forced to quit unless they expand their operation.

Poolin.com is one of the mining pools out there, its Vice President talked about it and gave his opinion, " Miners using old equipment will have to disconnect after halving"

The time has come for small miners isn't it?

This is all too familiar with the miners. 3 times halving ago it completely followed the scenario of sharp decline before rising. miners are not traders either, they don't need instant profit. They create the factory and leave it running for 4-6 months and then harvest the results. I'm sure the whales will not let the miners lose, the whales will pump it up so the miners are profitable and the hashrate increases. The game will continue and do not be too pessimistic when prices fall sharply, it will soon recover as planned.

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Quote from: Barcode_ on May 09, 2020, 06:27:29 PM

I guess it will highly depends on how the price of bitcoin will goes after the halving event for bitcoin completes in a few days time, if the price of bitcoin does skyrockets after the halving event, I believe some small bitcoin mining companies can still choose to operate their mining business with small profits gain every month. As usual, large bitcoin mining companies would surely have more advantage in the bitcoin mining industry due to the huge amount of resources they have on their hands.

I think the same here. If the price will continue to increase, I guess even small miners will still get good profit. Though large bitcoin mining facilities will have the advantage but those small miners combined will still have significant impact in bitcoin mining industry. We will see the aftermath of halving maybe 2 weeks or couple months after this event.

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I guess it will highly depends on how the price of bitcoin will goes after the halving event for bitcoin completes in a few days time, if the price of bitcoin does skyrockets after the halving event, I believe some small bitcoin mining companies can still choose to operate their mining business with small profits gain every month. As usual, large bitcoin mining companies would surely have more advantage in the bitcoin mining industry due to the huge amount of resources they have on their hands.

arallmuus

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Quote from: Spaffin on May 09, 2020, 04:20:19 AM

Anyway, the income of the miner will primarily depend on the price of bitcoin.

Not solely as some miner tend to mine other altcoin as well ( some smart miner atleast )

Quote from: Spaffin on May 09, 2020, 04:20:19 AM

In almost a year, Bitcoin rose by 300% and in July 2017 amounted to about $ 2,500. In addition, And we all observed that before the end of 2017, Bitcoin almost skyrocketed to $ 20,000

Although statistically it shows an increase after each halving, dont forget that the current world is in pandemic right now. Alot of people need cash instead of investment, I mean the average joe so people could be hard selling it once it reach a certain number.

In longer term however we might see an increase but some miner could be affected by it and might stop their operation ( unless you mine from a third world country with cheap electricity )

Quote from: Spaffin on May 09, 2020, 04:20:19 AM

Thus, halving 2020 can also show very good results and miners will not suffer.

Quite confidence arent you but I do agree on this

Spaffin

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Anyway, the income of the miner will primarily depend on the price of bitcoin. And if we take into account the facts that confirm the influence of previous halving on the price of bitcoin, then you do not need to worry about the salaries of miners. So, the 2012 event affected Bitcoin in the best way, because during the year Bitcoin managed to rise to $ 1,000, which corresponds to almost 8.086 % percent growth. in the same way, halving in 2016 also affected the rise in bitcoin prices. In almost a year, Bitcoin rose by 300% and in July 2017 amounted to about $ 2,500. In addition, And we all observed that before the end of 2017, Bitcoin almost skyrocketed to $ 20,000. Thus, halving 2020 can also show very good results and miners will not suffer.

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Quote from: Sanugarid on April 28, 2020, 11:56:23 AM

The halving event is coming in a few weeks, rewards for mining will decrease to half specifically from 12.5 BTC to 6.25BTC. Small miners won't be able to contain a very much low block reward it will be lesser than what they are going to spend in mining. Huge mining entities can go on while the small ones will be forced to quit unless they expand their operation.

Poolin.com is one of the mining pools out there, its Vice President talked about it and gave his opinion, " Miners using old equipment will have to disconnect after halving"

The time has come for small miners isn't it?

I was acquainted with a bitcoin mining business brother. He said that as long as the price of BTC is above $ 4k, he has enough profit to cover all costs. so bitcoin halving this time only brings profit to miners when the price of bitcoin is above $ 8k. and now it is sufficiently satisfied and I think the big diggers will still function normally. because that is the life source of the whales, they need to exploit many Bitcoins to better manipulate.

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Quote from: michellee on May 06, 2020, 10:34:36 PM

Quote from: silversurfer1958 on May 06, 2020, 07:45:34 PM

I don't think the halving event is the end of the small miner. Because although BTC's mining difficulty has doubled, the value of BTC has greatly increased. Currently at the time of writing, the value of BTC is $ 9300. If after the halving event, the price of btc exceeds the $ 20k , the small miner will continue to work. Because they can mine a smaller amount of BTC than before but they can earn more dollars due to the value of BTC going up in the future.

But the small miner will not get a big reward if they still mine bitcoin. I don't know how many satoshis they will reach every day because that will depend on how big the hashrate that they have in their hardware. And if bitcoin price is at more than $15k-$20k, then they might make a nice profit with their hardware because they can sell the reward to get the profit. But yes, they need to calculate how much the electricity cost that they should pay so they can get the real profit.

What can we do, if that's the nature of bitcoin? We just need to do some adjustments and adapt on its changes in number and its effect in the market. We all know that the demand on bitcoin will become higher compared to its normal price because of the halving of its supply. Miners should do some adjustments also as small miners are the one who will not get the advantages of this halving as they will not get the rewards that is appropriate for them. Calculating the expenses in mining bitcoin is not that easy and required for you to prevent losses and you know how to budget the profit that you've gained. Profits should be saved and budget properly for you to know the importance of the advantage of halving in bitcoin's price.

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Quote from: silversurfer1958 on May 06, 2020, 07:45:34 PM

I don't think the halving event is the end of the small miner. Because although BTC's mining difficulty has doubled, the value of BTC has greatly increased. Currently at the time of writing, the value of BTC is $ 9300. If after the halving event, the price of btc exceeds the $ 20k , the small miner will continue to work. Because they can mine a smaller amount of BTC than before but they can earn more dollars due to the value of BTC going up in the future.

But the small miner will not get a big reward if they still mine bitcoin. I don't know how many satoshis they will reach every day because that will depend on how big the hashrate that they have in their hardware. And if bitcoin price is at more than $15k-$20k, then they might make a nice profit with their hardware because they can sell the reward to get the profit. But yes, they need to calculate how much the electricity cost that they should pay so they can get the real profit.

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Quote from: silversurfer1958 on May 06, 2020, 07:45:34 PM

I don't think the halving event is the end of the small miner.

But of course you cannot disregard the other factors need to consider most especially the electric consumption. Because I saw posts of selling Antminers and GPUs sometimes on crypto groups I joined on Fb. Take note, they are on a fresh condition. Thus we can conclude that small scale mining is not worthy (or at least less profitable) anymore. Well, maybe only here in our country tho since its hotter here and have more expensive electricity Grin

.

Quote from: silversurfer1958 on May 06, 2020, 07:45:34 PM

If after the halving event, the price of btc exceeds the $ 20k ,

Really? Are you a fortune teller lol? We are not sure of that dude. I hope it will happen but I'm not relying on that expectation

.

silversurfer1958

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I don't think the halving event is the end of the small miner. Because although BTC's mining difficulty has doubled, the value of BTC has greatly increased. Currently at the time of writing, the value of BTC is $ 9300. If after the halving event, the price of btc exceeds the $ 20k , the small miner will continue to work. Because they can mine a smaller amount of BTC than before but they can earn more dollars due to the value of BTC going up in the future.

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Few dasy later for halving but bitcoin still not the same and keep on lower price, I think this bad days for bitcoin halving time because couldn't give effect how to make bitcoin looks profitable and become investment assets for the future with higher price. But not bitcoin keep going down and not show how profitable with bitcoin price.

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Quote from: avikz on April 28, 2020, 12:16:57 PM

Possibly yes, if the price doesn't increase or remains at the current level. So purchasing bitcoin from the market instead of mining will be cheaper for the majority of the miners. But those who are using alternative sources like wind power or solar panel will be exceptions for obvious reasons.

So to sustain the current mining profitability, the price has to double as the reward will be halved. But if large number of miners go out of the business - no one will escape the suffering! Expect increase in fees and longer waiting time as an immediate result of upcoming halving.

It would really be on domino effect and we should anticipate that if the demand would remain constant and doesnt have any tendency to rise up for further months. Small scale miners wont really have any option but to shut it down unless if they do want to donate some money on paying up electricity bills.Its just dumb for you to continue into things which arent profitable.Of course this one would exclude to those
who've been mining with very cheap electricity even if the price doesnt react that much then it wont be a problem.In talks of fees then lets see on what would happen after the halving.

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Quote from: kleinkgd on May 06, 2020, 10:36:16 AM

Is it possible to discuss an increase of transaction fees for small miners?

Fee revenue should increase as adoption increases, and also tends to surge during bubble times like 2017, but this probably won't happen squarely around the halving.

No matter what, the halving should have a consolidating effect on the mining industry.

kleinkgd

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Is it possible to discuss an increase of transaction fees for small miners? On "big" cryptocurrency related news websites they write about this possibility, but I guess it will be not interesting at all for the major part of small miners.

Regarding the future of "big miners", - you surely know that in Irkutsk (Russia) a russian oligarch pays near 0.2 RUB per kWh (for today: 0.0027 USD) for an electricity for his big farm. Surely it remain effective to mine and for the future.

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Quote from: Botnake on May 05, 2020, 08:21:18 AM

Quote from: boyptc on May 05, 2020, 07:40:41 AM

But, that possibly will happen because of the increase in difficulty. I think the small miners understand this even before they've started mining.

I agree with that, those early miners if they were able to get a good amount of bitcoin and they manage it properly, they'll be able to buy good mining equipment now to prepare for every halving, this time its for the big company that will play the game, they will because they can and small miners will just not gonna survive, so instead of mining, it's better to invest our money in bitcoin and learn how to trade, still the same result if we will be successful as we will still make bitcoin in the crypto space.

Even if they can afford to buy new mining rigs but their location will charge them
higher amount of cost from electricity then all their
efforts will come to nothing and Big miners will still win the competition,there are
so many small miners in the past that already
stopped operating now because they find the cost of electricity is much higher than
they are gaining from mining so instead of continues
mining they chose to stop and find other things here to get profit.

Topic: Mining: Halving will destroy the half of us. (Read 836 times)