Mining: Halving will destroy the half of us. - page 4.

deisik

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

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

Does anyone have the up-to-date stats?

jostorres

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

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?

Yep that’s the truth. It’s going to be like that after the halving, unless the price increases. If the price doesn’t increase a lot of miners are going to quit because they will be unable to take the expenses that will be coming from mining. I don’t really know how it’s going to be, but one thing for sure is that the price of Bitcoin will decline and it’s going to affect the altcoins too.

Quote from: FlightyPouch on April 30, 2020, 08:26:41 PM

We don't know what might happen but if the price did, I guess that would be for the better not just for the investors but also for the miners especially to small miners.

I know for sure that there will be miners who will drop out from mining Bitcoin, because judging from the past experience the price didn’t start going up immediately. It might be the same thing that will happen this time around, the price might take time before it goes up after the halving.

davinchi

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When we are talking about the "little guy" we are not talking about the person who mines with his computer anymore at all, not even the person who has insane amount of rigs because rigs do not mine bitcoin anymore, it is only Asics. There are tens of Asic machines who are old and wouldn't mine neither. So, when we are talking about the little guy we are not talking about the machine, we are talking about the amount.

A small miner is someone who uses 100 of the same machines whereas the whale miner is the same machine but with thousands of them, they are both using the same thing but one owns very little amount of that machine whereas the other has unlimited amount, even makes it themselves. Otherwise machinery is no longer a question, if you have an old one you are not going to profit at all.

imstillthebest

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Quote from: smyslov on May 01, 2020, 08:28:05 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 .

mu_enrico

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Well if pumpers can raise the price for 2x and stay there for some time there will be no effect...
Block subsidy would be the same:
* 12.5 x $6,000 = $75,000
* 6.25 x $12,000 = $75,000

I think small time miners already destroyed in the last bear market, so this is battle between large farms.

Smitty Werben Man Jensen

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certainly everything will have an impact, Halving also includes having a big impact on miners, and depending on how miners arrange their strategies so as not to lose money, I'm sure miners don't just mine Bitcoin, there are lots of coins that can be mined, and I think if miners give up on it very ridiculous, considering the price of Bitcoin will reach 10x in the next few years, miners will know that

silversurfer1958

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The cost of mining for 1 BTC after the halving day will cost twice as much as it is today. Therefore, old technology excavators with weak processing power will be eliminated. Miners have to spend large sums of money to buy the latest technology miners with powerful processors many times more than before. All of the above factors will help the value of BTC will have a big pump compared to the current price.

smyslov

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

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?

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.

verita1

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There has been a lot of speculation regarding Halving 2020.
But to focus on the topic of mining. Hut 8 has stated that revenues and margins have decreased considerably in the last two quarters, with the halving there is the possibility that the mining platforms are not profitable. With a BTCitcoin boost, it could greatly benefit them.

https://www.coindesk.com/blockchain-bites-what-the-bitcoin-halving-means-for-miners-and-prices

FlightyPouch

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Well, if they really wanted to get on that ride, they should really think of that. As halving happens, the difficulty also rises and that also means that those small miners will be having a hard time getting a profit if the price did not increase, but what if the price did? We don't know what might happen but if the price did, I guess that would be for the better not just for the investors but also for the miners especially to small miners.

countryfree

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Quote from: figmentofmyass on April 30, 2020, 04:38:30 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.

the lack of blocks the past 2 days has begun causing quite the mempool backlog:

I know that so well!
BTC's price is just not rational.

Back to the subject, I used to believe small miners have disappeared years ago. If there's one left, I guess he/she has already switched to some altcoin.

figmentofmyass

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Quote from: Reid on April 30, 2020, 12:25:46 PM

But what if the price of bitcoin will suddenly soar?
Will that be enough for them to stay?

chances are the market will meet in the middle.

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.

the lack of blocks the past 2 days has begun causing quite the mempool backlog:

bitgolden

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"Small miners" is not really a thing that means something forever, there are small miners who are small right now, but in few years they will be using the machines of right now, so they keep getting more and more machinery and stay small all the time. Halving is just a time when it hurts the finances of small miners right away, but in general there is ALWAYS big miners and small miners.

Big miners gets this huge amazing great product and starts mining right away, small miner has old machine and tries to make as much as they can, afterwards the machine big miner got that was awesome becomes older and there is a new one, so the big miner sells it and small miner gets it meanwhile big miner gets the new one again. This has been going on forever and it will probably go on forever.

So, small miners might take a hit during this period, they might want to close shop for a while and not mine anything, but eventually they will still make some money.

Ucy

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Quote from: boyptc on April 28, 2020, 01:17:51 PM

The price will adjust but there's a tendency that they have to shut their small miners and wait for that price adjustment to come. Maintenance and other costs can't be sustained anymore if the price won't adjust and that's the final resort that they must do.

Not unless these small miners are using:

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

wind power or solar panel will be exceptions for obvious reasons.

and also cheap electricity.

Small miners could still be affected If the rewards continue to get slashed every four years, price of energy & hardware remain thesame or doesn't reduce substantially, while coin price doesn't move up very much. Community probably could do away with miners and replace that with something more sustainable and decentralized or find other ways to incentive & keep the small miners

Reid

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But what if the price of bitcoin will suddenly soar?
Will that be enough for them to stay?

Yes, it might be a great chance for small miners but if the difficulty is still high can they really afford it with the price still the same?
I know they will need to pay a lot for monthly electric bill and there is the thought of having ROI for the equipment used but can they still risk that much? Will you? If ever?

snipie

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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...

fortunecrypto

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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?

It's inevitable small miners will have to give up, but I'm sure small miners have seen this one coming and have calculated their profits and losses, I have seen some miners already selling their mining rigs in our local online shop, three years ago you seldom see this kind of mining rigs being sold in that marketplace.

webtricks

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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?

What is your definition of small/huge?

It's all relative TBH. Bitcoin mining difficulty has been increasing over years. In initial days, high tech computers were enough. But now thousands of ASIC miners mining simultaneously are needed. And this rise wasn't immediate or associated with halvings. It was gradual with the popularity of bitcoin. So small miners as per my definition had left mining way before in 2015. Now few more will leave (most probably will change the coin they mining). Mining isn't a secure office job. It comes with risk and you have to upgrade yourself with time to achieve break-even plus profit else you have to leave, as simple as that. But the most important fact is that Bitcoin will become scarce and valuable and that's what matters the most.

tbterryboy

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Sadly it is the truth. Small miners will have to quit from mining when the halving is done and they are receiving small amount of block rewards. The only way they will be able to pass through this is if the price of bitcoin should increase immediately after the halving, then the rewards they get will be enough for them.

But the way I see it, the price is not going to increase immediately after the Halving and I’m saying this based on my experience with the other halving that took place, the price doesn’t go up immediately, it takes time and move up slowly, unless things are going to be different this time around.

gentlemand

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I thought the little guy became toast about 6-7 years ago. Mining is certainly not something that ever crossed my mind when I arrived and it hasn't done for a second since either. Mining is pure Darwinism so I will not shed a tear for anyone who can't cut it.

Topic: Mining: Halving will destroy the half of us. - page 4. (Read 836 times)