Mining: Halving will destroy the half of us. - page 3.

deisik

legendary

Activity: 3514

Merit: 1280

English ⬄ Russian Translation Services

Quote from: shoreno on May 04, 2020, 01:04:03 PM

Quote from: South Park on May 04, 2020, 12:35:16 PM

Miners that are using old equipment will have to stop their machines anyway at some point even if the halving did not took place, as we know mining equipment is always been improved upon and it will come to a point in which the old equipment will be unable to produce any profits for their owners, the only thing that the halving is doing is to speed up that process and while this will centralize bitcoin mining even further it is an inevitable process as the more efficient miners will drive out of the market those that are inefficient.

speed up so it means the transaction will now be faster ? thats great . now we can use more btc even in a hurry but the only downside is that it will make things centralized ?

Transactions won't become faster

I mean beyond what is specified or implied by the Bitcoin protocol, which is one block of transactions per 10 minutes (unless you are using LN or similar technology for off-chain transactions). But you probably already know that, don't you? Of course, if there's a dramatic surge in the hash rate, we will likely see a boost in the number of new blocks found, which will bring about faster confirmations as well, but this rise will soon be leveled out by the respective rise in the mining difficulty. And then we are back to square one (minus some miners having to pull the plug)

shoreno

full member

Activity: 1750

Merit: 118

Quote from: South Park on May 04, 2020, 12:35:16 PM

Quote from: Sanugarid on April 28, 2020, 10:56:23 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?

Miners that are using old equipment will have to stop their machines anyway at some point even if the halving did not took place, as we know mining equipment is always been improved upon and it will come to a point in which the old equipment will be unable to produce any profits for their owners, the only thing that the halving is doing is to speed up that process and while this will centralize bitcoin mining even further it is an inevitable process as the more efficient miners will drive out of the market those that are inefficient.

speed up so it means the transaction will now be faster ? thats great . now we can use more btc even in a hurry but the only downside is that it will make things centralized ? oh no . i think being centralized is one of the things that crypto users hate but no choice for others because if all will leave then that will be a disaster but they wont do it becuase they will think that when people leave the mining scene there will be less competition so more income for them

South Park

hero member

Activity: 2884

Merit: 794

I am terrible at Fantasy Football!!!

Quote from: Sanugarid on April 28, 2020, 10:56:23 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?

Miners that are using old equipment will have to stop their machines anyway at some point even if the halving did not took place, as we know mining equipment is always been improved upon and it will come to a point in which the old equipment will be unable to produce any profits for their owners, the only thing that the halving is doing is to speed up that process and while this will centralize bitcoin mining even further it is an inevitable process as the more efficient miners will drive out of the market those that are inefficient.

7788bitcoin

legendary

Activity: 2282

Merit: 1023

Quote from: Sanugarid on April 28, 2020, 10:56:23 AM

Miners using old equipment will have to disconnect after halving"
The time has come for small miners isn't it?

It all depends upon individual miners whether to disconnect or keep on mining, users with renewable energy like solar might keep on mining even without any benefit to help the network with a full node. There are many selfless in the bitcoin space and they will keep on running their equipment until it become obsolete.

Quote from: avikz on April 28, 2020, 11:16:57 AM

Expect increase in fees and longer waiting time as an immediate result of upcoming halving.

Even last week when the price had a rally the transaction with lower fees took a long time to get confirmed and some of my transaction got stuck not anticipating a jump in price all of a sudden and with the halving near our sight i am expecting longer waiting time to get a confirmation.

schuriken

jr. member

Activity: 116

Merit: 3

Quote from: Sanugarid on April 28, 2020, 10:56:23 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?

with no doubt miners situation will be bad.but in the beginning i hope!! after that maybe we gonna see some better equipment for miners and see alot of more pos mining style witch is much better.and also after halving we will see drop of price because of that.

Yatsan

legendary

Activity: 2576

Merit: 1252

Leading Crypto Sports Betting & Casino Platform

Quote from: Sanugarid on May 04, 2020, 07:21:50 AM

Quote from: Botnake on May 03, 2020, 08:23:49 AM

I think they already know that it's going to happen in the future, small miners will have to disconnect if they will not upgrade their equipment, that's the how the game is played here, if they are willing to continue to the business, they should prepare for this upcoming halving, and we also have our rule to help increase the price of bitcoins so miners will survive.

There is nothing left for small miners to choose from, either they need to expand their operation to sustain their expenses relative to their suppose income but I don't think they have the guts and money to do that since there are already big players in mining industry and upgrading might be just failure in the making. These miners should be focusing on mining alternative coins, those coins that has a huge potential to play along with such great contenders. I hope the last thing in their mind is to disconnect from mining.

They knew at the very start that this time is going to happen, they are not that dumb to not to think of the halving that will come at them especially to small miners but, what I really doubt is if they have a savings from mining because as far as I know they are only getting enough to make a daily living and the expenses they are generating from electricity consumption, So if happens that small miners are really urge to continue mining they should be putting a lot of money too, like a new capital however you are correct that the competition in mining after halving will get higher due to cut of supply and rewards. Small miners are in dilemma right now, whether to continue or disconnect.

Sanugarid

full member

Activity: 1442

Merit: 153

★Bitvest.io★ Play Plinko or Invest!

Quote from: Botnake on May 03, 2020, 08:23:49 AM

I think they already know that it's going to happen in the future, small miners will have to disconnect if they will not upgrade their equipment, that's the how the game is played here, if they are willing to continue to the business, they should prepare for this upcoming halving, and we also have our rule to help increase the price of bitcoins so miners will survive.

There is nothing left for small miners to choose from, either they need to expand their operation to sustain their expenses relative to their suppose income but I don't think they have the guts and money to do that since there are already big players in mining industry and upgrading might be just failure in the making. These miners should be focusing on mining alternative coins, those coins that has a huge potential to play along with such great contenders. I hope the last thing in their mind is to disconnect from mining.

deisik

legendary

Activity: 3514

Merit: 1280

English ⬄ Russian Translation Services

Quote from: beerlover on May 03, 2020, 11:09:54 AM

There is also some people who join this with some money aside as well, which means even if they are not making a profit, not everyone joins it as something to make money forever, not every single thing they do is for money, mostly it could be something like an investment in general. So at the end of the day those people will continue, just a 100k investment could be big to you and me, but it is not for some people, plus it is still small for some people as well

This logic is not without flaws

And its major flaw or weakness is that the people you refer to (investors) would be better off financially if they just chose to buy bitcoins with their dollars (or whatever) at a market price instead of buying mining rigs, and then simply held the cryptocurrency. It makes sense to mine at a loss only if you are already heavily invested in this business, know all of its ins and outs, and see the bright days ahead when your efforts and pains will be rewarded accordingly (like Bitcoin hitting 100k in a couple of months)

beerlover

legendary

Activity: 3052

Merit: 1188

There is also some people who join this with some money aside as well, which means even if they are not making a profit, not everyone joins it as something to make money forever, not every single thing they do is for money, mostly it could be something like an investment in general. So at the end of the day those people will continue, just a 100k investment could be big to you and me, but it is not for some people, plus it is still small for some people as well.

So, the middle level will continue, people who are richer than us, poorer than the whale miners will try to survive as well. I am not sure whats going to happen to everyone, I am sure all of them will be hurt, its going down half in the end so there is no way all of them profiting from it.

Maestro75

sr. member

Activity: 1960

Merit: 329

Quote from: Sanugarid on April 28, 2020, 10:56:23 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?

What matters is the overall interest of the bitcoin community and not that of few individuals. We must not think of how small miners will survive after bitcoin halving because they will survive. Those who are serious to remain in business will get bigger mining equipment to cut cost. They will devise means to remain in business. That is how miners have been surviving the quarterly halvings.

Botnake

hero member

Activity: 2856

Merit: 667

I think they already know that it's going to happen in the future, small miners will have to disconnect if they will not upgrade their equipment, that's the how the game is played here, if they are willing to continue to the business, they should prepare for this upcoming halving, and we also have our rule to help increase the price of bitcoins so miners will survive.

deisik

legendary

Activity: 3514

Merit: 1280

English ⬄ Russian Translation Services

Quote from: Sirait on May 02, 2020, 01:51:43 PM

halving day that will occur such as selecting and getting rid of small miners, but if the price of Bitcoin is higher then the small miner will still be able to survive

The higher price on its own won't suffice

More specifically, small miners dancing around the breakeven point can survive only if the price keeps rising over a long enough timeframe (say, a month or longer). If this is the case, they will be able to mine at a loss and hope (read, pray) that the price goes north in the near future so they are able to sell for a profit

However, if the price just rises and then stays there, the difficulty will catch up in a short while, and their losses will come back with no chance of making ends meet. In this manner, small miners are like small businesses -- generally full of hope but more often than not ending up in pain and debt

Sirait

full member

Activity: 1890

Merit: 101

halving day that will occur such as selecting and getting rid of small miners, but if the price of Bitcoin is higher then the small miner will still be able to survive

I am very optimistic that the price of Bitcoin will soar high after Halving Day goes well

deisik

legendary

Activity: 3514

Merit: 1280

English ⬄ Russian Translation Services

Quote from: Sanugarid on May 02, 2020, 11:48:08 AM

Quote from: deisik on May 02, 2020, 03:59:20 AM

Higher fees means more revenue for miners. I didn't see the latest stats, but a couple years ago transaction fees had already been contributing greatly to the revenue flow received by miners. So, if, for example, the fees collected by miners account for half of their profits now, to entirely offset the negative impact of the coming halving, the fees will have to rise twice on average. But if they are already making up the best part of the miners' profits (say, 70-80 percent or even more), the halving won't cause a dramatic plunge in the current mining profitability

Yes, there will be higher fees for miners to be rewarded from but it does not change the fact that the number of block will be halved this May

You don't get it

But let me help you. A miner's profit consists of two independent variables, i.e. the block reward (a variable set in stone until changed by halving) and the fees that she collects from the transactions included in the block (a floating variable). Then, if the network fees now constitute the majority of mining profitability (over 50%), the coming block reward halving won't make a dramatic dent in profits, even if the fee structure remains essentially the same

Sanugarid

full member

Activity: 1442

Merit: 153

★Bitvest.io★ Play Plinko or Invest!

Quote from: deisik on May 02, 2020, 03:59:20 AM

Quote from: avikz on April 28, 2020, 11:16:57 AM

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

Higher fees means more revenue for miners. I didn't see the latest stats, but a couple years ago transaction fees had already been contributing greatly to the revenue flow received by miners. So, if, for example, the fees collected by miners account for half of their profits now, to entirely offset the negative impact of the coming halving, the fees will have to rise twice on average. But if they are already making up the best part of the miners' profits (say, 70-80 percent or even more), the halving won't cause a dramatic plunge in the current mining profitability

Yes, there will be higher fees for miners to be rewarded from but it does not change the fact that the number of block will be halved this May. It means also a higher competition from small and huge mining farms but the question is, do rewards will keep the maintenance of the equipment and power consumption? Even they have the latest tool that is energy efficient I think it would not be enough. Small miners can still try after the halving, but if they already sees that it won't be worth it at all then that's the time they should jump into another coin.

naomi-the-cat

jr. member

Activity: 49

Merit: 1

This will cause even higher mining centralization unfortunately

MCobian

full member

Activity: 1190

Merit: 117

I'm sure small miners have calculated bitcoin halving that will happen in a few days, the possibility of miners using old equipment is not
continue bitcoin mining. In my estimation, small miners will switch to altcoins, because the rewards for mining will decrease half of it.
Very heavy for small miners to continue, not to mention calculations for electricity costs. In the end bitcoin mining will be dominated by
big miners.

Saisher

full member

Activity: 2324

Merit: 175

Quote from: snipie on April 30, 2020, 08:41:30 AM

Less than two weeks (~12 days) from the halving and the price is rising near $9k which is good imo, the essential part is to maintain this progress until the halving. Such thing could keep as much miners as possible...

Yeah I guess they still have 12 days to go and after that they will have to decide if they want to stop or continue mining, but after the halving the scenario is not favorable to them anymore, they will have to eventually stop mining or look for a new coins to mine with the same algo as Bitcoin.

deisik

legendary

Activity: 3514

Merit: 1280

English ⬄ Russian Translation Services

Quote from: figmentofmyass on April 30, 2020, 03:38:30 PM

look at what's happening with price vs hash rate lately. the price has gone through the roof---up to $9k from the $6000s last month---yet the hash rate is actually dropping now. can you believe that? a couple days ago, difficulty was set to increase ~2%. now it's set to drop ~1% and it looks like it will continue dropping further. miners seem to be shutting down in anticipation of the halving, no matter how bullish the market looks now

To me, it looks more like a deliberate, contemplated and orchestrated attempt to bolster fees

We have already seen so many congestions in the past (starting 2015) that by now we should be used to taking this dynamic with a pinch of salt. So yes, we can believe that, that the hash rate is dropping now, but it doesn't in the least mean what you are trying to get across, i.e. that miners are leaving because they don't think this market is any longer profitable. Let's wait a few weeks and see if the hash rates don't hit new highs in the aftermath of halving

matchi2011

sr. member

Activity: 1456

Merit: 267

Buy $BGL before it's too late!

Quote from: imstillthebest on May 01, 2020, 12:06:53 PM

Quote from: smyslov on May 01, 2020, 07:28:05 AM

They still can make a profit from mining other coins with similar halving with Bitcoin, or they can sell their mining rigs at even half of their price since they already mined a lot of coins in the past, this is the reality they have to accept and I'm pretty sure they know all of this before it comes.

this isnt new but this were already discused many times before and as a miner they already do thier research before they start that hobby/job so no worries . the one that i saw before is that miners are going to sold thier old miner and then obtain a new one to start mining again while i dont think they mine other coins if they already mine btc because they can earn more on btc plus whats the reason why they enter this hobby if its hard ? maybe they want more challenge .

For sure those who are still continuing this business has done doing their research, as knowing the risk since halving take place and the amount of received
shares will be more lessen. This miners understand everything and if they choose to continue then everything has been reviewed.
Miners are believers that time will come that the market will bounce and bring decent as long as value will rise high.

Topic: Mining: Halving will destroy the half of us. - page 3. (Read 868 times)