Topic: most of miners are shutting down their gigs? - page 2. (Read 856 times)

Right now mining rigs functional on countries with increased electricity charges have been found shut upon the steady price drop which is unexpected. Majority of the miners face a drastic loss, having patience will let everyone grow with ease.

btc-room-101 has many many many calculations WRONG

hashdate 42exa
42000000thash
=3mill s9 asics always hashing

with 1800 btc mined a day
each asic makes 0.0006 a day =$2.40+

each asic bought last year was the s9 which was 1.3kwh
at $0.05/kwh = $0.0625 an hour per asic = $1.50 a day per asic

so your making 90c profit after electric is paid TODAY
i know your doing the math thinking 90c after electric
=6 years to cover hardware cost of an s9 12 month ago
=2.6 years to cover hardware cost of an s9 asic 6 months ago
=8months to cover hardware cost of an asic price batch of 3 months ago
=4month to cover the hardware cost at todays $100 second hand cost(ones offered to you)

but here is where your getting it wrong. basing old hardware costs on todays income
you said it yourself you can buy hardware at $100
which doing the actual math. subtracting out the electric cost. accounting for decumilating income means you get your $100 back in 5 months
................
so lets go back a year. grab all the stats of bitcoin prices. hashrate and math it out day by day
when turning on the hardware last year
you would make ~$25.88 a day (i done the math) which minus the $1.50 a day electric =~$24.38
that first day income after electric was $24.38

i done the math of hashrate per day divided it up to per asic and everything. and repeated it so that i could
calculate the de-escalating income per day. i even evaluated it against the btc price each day (eg selling your daily income as it came in)

and guess what.
within 5 month your income after electric. would have paid off the hardware.
meaning after the 5th month. you then are mining just with electric costs to cover.
knowing that there is still the rest of the year to go. you can work out at $1.50 a day thats $320~ of electric for 7 months
which paying the daily electric and just saving up income after electric as you use it.

within 2 months you have made enough profit. to cover the rest of the year.
so by month 7. you are making pure profit and no longr worrying about electric bill for the rest of the year

yep
mining on an S9 from december 2017 to december 2018 would get you ~$3147 BEFORE electric, taking into account you selling each daily reward each day
which is: ~$2600 after electric

have a nice day

So your saying its OK to lose money to mine?

This means that miner's are no longer working for a profit, but they're just taking real money to buy more crypto.

Most miners went into mining to make money, not to make crypto.

When as now, when there are NO LONGER profits mining, why would people continue to mine? Unless they were idiots?

...

Last year this time, it cost 20 barrels of oil to mine one bitcoin, worth 50 barrels of oil, a 30 barrel profit.

Today, it costs 20 barrels of oil to find a bitcoin worth 7 barrels of oil, so MORONS would like to think that miners are willing to GO negative in the red to get bitcoins???

Oh, yep that's right they're going to do this because the price is going to go back up? ( no its not )

When gold mines shutdown, its because they don't pay for themselves, today MINING doesn't pay the electricity bill,

Most miners are shutting down, most mining pools work for CASH money, just like real miners, they don't hold the gold, they sell it to pay salary's and get drunk and party, then go back to work.

Make sense, a transition from an old miner to a newer efficient one.  If there is a limited space, one must shut down his old miner first before implementing newer miner for an upgrade.  It is possible once this upgrade is done we can see a rise of hash in the next days or week.  I also heard that a new and more efficient miner is out so it is normal to see such a scenario.  If mining is still profitable today, there is no sense to stop mining.

yes, I agree with your opinion, miners only rest for a while because of the cheap coin prices that cause small profit income. I'm sure the miner will be active again when the price has risen.

yes, maybe the person's decision is different, there are those who pause for a moment and resume it and there are also those who sell their mining equipment because of certain cost factors.

GIG or RIG?

My first thought was like most posts on this forum it was a HODL'r ( retarded person ), and he was quitting his day job (gig)

I think most HODL'rs don't mine, they buy, as they have been told, besides long ago the investment for an s-9 was so high, they were told its better to buy, than mine, ...

So we don't know here if this person is talking about quitting a job, or shutting down their rig

It's not the end of bitcoin, because when the rigs ( take the s-9 as a base ), go for $10, people in china will buy them as space-heaters, and the accept the cost of electricity, and buy them for the added good of winning the lotto.

My fear is that new software will be deployed for mining only, and nobody will be running full servers to process transactions, thus BTC will be in deep shit, cuz the tx rate will go from bad to worse.

Remember an ASIC miner doesn't need a hard-disk ( full block chain ) it just needs to call home and get work and send back a hash that is led by 'N zeros'.

Now that running a full-node doesn't make you money because mining is dead, ...what's the point.

Lastly, difficulty will not drop cuz all these miners in china will be running as space heaters, thus price goes down, but difficulty goes to infinity.

Well in the real world, and not the fake believe HODL world, but according to whattomine.com, right now an antminer S-9 causes you to lose $1/day

Thus in the real world who in the hell is keeping their miners running? ALso in the real world, it take +2 years to find a bitcoin, but the reality unless your on a chinese mining pool, you ain't going to get that bitcoin, cuz they got 90% of the miner's, and they decide who 'wins' the each round.

S-9's will become dirt cheap, I get offers every month from BITMAIN for $100 USD ( I'm assuming they're used or rehabs ), but the deal is they got a huge stock that ain't selling;

Only in places where the electricity is less than 0.05 per khw can you make profit at todays difficulty, but the only place that is that cheap is venezuela, ... which is in a civil war, and mining is illegal, so if you go mine there and get caught you win a spot  where you will starve & die in the mud,

The only rational thing to do with S-9's is to use them as space-heaters, and accept the fact that any btc you win is a lotto-win, I think millions of chinese will be having s-9's in their homes, but that said you must enjoy 110db sound of jet-engine in your house, so sound-mufflers will be the next 'big thing' if you want to get rich

Chinese miners are always going to be the last ones shutting anything down. even if their equipment is outdated they simply upgrade it since they have access to fast shipment of ASICs from Bitmain which is in the same country and easy to access.
besides ASICs don't expire all at the same time! there was new versions released which made it less profitable to run the old ones so some started shutting down or  upgrading. that shouldn't cause much of a hashrate drop in my opinion.

There was an article about miners in China shutting down their rigs and this has nothing to do with cost of electricity or difficulty, but this is more on the equipment itself reaching the lifespan where it needs to be shut down or replaced or else maintenance of such equipment will be more expensive.

true. 'cause it's just a news which is still have no specific reason until now despite of this consecutive down falls.  For me must grab some now for long run instead of worrying and waiting for more results 'cause in fact market now is searching for new strong bottom stage , which surely IMO it will suddenly changes direction after and will make a high jump like what always happen . So must stop searching causes about the circumstances and grab the opportunity man 'cause that's the good idea for now to don't miss the up coming train again.

This is because of bitcoin's decreasing price and takes to a next level of continuity dropping price. Most miners quit at bitcoin mining and try a new one with BCH bitcoin cash alternatively.

I am believe its just temporary. Miners shutting down their gigs because its not profitable anymore for mining bitcoin and beside that, maybe they trying to replace the device with new one that more efficient

Actually, we don't need so many miners and we have experienced an increase on number of miners becuse of rocketprices of bitcoin in last year. If the amount of hash decreases, the rewards will be higher, mining will be more feasible, and it will be an opportunity for the survivers. So many people jump into this business, some of miners have low budgets, and there was a chaos. Now, mining service can be performed more professionally.

a unused s9 is $850
a unused s15 is $1450

s15 is 28thash = 2x s9(14thash)
s15/2=$725
s15 wins

also s15 is 1.6kwh. so s15/2=0.8kwh,   unlike an s9 which is 1.3kwh
s15 wins again

what people dont realise is what happened in october
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this is normal hashing rises prior to october where more s9's are steadily added
this is them not adding more S9's
this is the initial replacing 1s9 for 1 s15
thus going back to normal steady rises but where they would only turn on 1 s15 when they would normally turn on 2 s9
this is them turning off some s9's and swapping 2s9 for 1 s15 (flat swap)
this is them realising they could actually take 8s9s out and only put 3 s15s and still win blocks while not having to run as many rigs

you can see on the hashrate charts the curve. though stretched out and zoomed out you dont notice the curve as much
forgive the colouring below. but i grabbed an earlier image i done to show some other topic something

the smaller image within the image is the 12 month hashrate. the larger image is a zoom on the october/november curve

looking at the image within the image. the blue highlight is normal action. the pink highlight is the initial purple flatline
the yellow highlight is the green orange purple red curve explained above

Yeah, I see. They more look like taking a break for now. Later, when the difficulty level is low, they will undoubtedly return. After that, anyone would want to mine bitcoin. Because they will see a fresh field to be mined again,

100% correct explanation there bud! Miners are just like the same as people these, people come and go so do the miners do but every time there are miners going to quit on what they are doing, it will be an opportunity for the others that are planning to mine Crypto Currencies and enter this industry. You're correct, losing some miners doesn't mean it is the end of Bitcoin or any certain kind of Crypto Currencies that can be mined, some people think so negative to the things that they don't understand completely but life still goes on.

Another correct explanation again! Only a small portion of miners shuts down but the big ones are still running and it looks like they would not stop from what they are doing as long as they gain profits with it.

Some of them just switched to Bitcoin Cash to stick it to Bitcoin Cash SV, so they are just going to temporarily mine that, until one of these coins gets dominance. After that, they will switch back to Bitcoin and things will return to normal. The drop in the price did cause some miners to scale down or to shutdown their miners, because they most probably mined with very expensive electricity.

The difficulty will drop after a lot of people left and the price of the coins will increase and they will come crawling back.  This is definitely not the end of Bitcoin. lol

The only miners who have to worry about that are those who were taking advantage of the subsidized energy of some countries, it is true that mining now is not as productive as before, but you can still make profits if you mine the right currency.

people still forget that new more efficient asics are incoming. many are already operating now. (they call it quality assurance testing, but yea they are making money)
its not doom. its just the start of a new day, you just have not seen the sun rise yet