The effect of bitcoin halving on bitcoin mining. - page 2.

FP91G

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Quote from: Rruchi man on September 29, 2023, 02:24:36 AM

The mood of expectation that HODLers of bitcoin are in for the halving that is expected soon is not the same mood that miners are in for the simple reason that;

As the halving will increase profit in investment for hodlers, it will reduce the reward for mining for miners to half.

I imagine that every miner is also hodling bitcoins and will still benefit the other way from the halving. Am I wrong? Is there anyone amongst us who is strictly a miner that depends on the rewards from mining as income to sort expenses and is not hodling any?

How should miners prepare for the halving?

Miners have several problems:
Bitcoin hashrate is constantly growing
New ASICs are appearing on the market
Halvings
Electricity prices rise every year
If you are 100% sure that Bitcoin will rise in price after the halving, then it is better to buy Bitcoin now.

Yamane_Keto

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It is true that miner rewards per block will drop 50% after bitcoin halving, but the average production cost per bitcoin will rise accordingly, which is about $15,000 while the price of bitcoin is about $27,000, which makes mining profitable.
Some estimates reported in Glassnode indicate that their model predicts that this average will rise to $30,000, which we can say that the price of Bitcoin will be above this price for the coming period or that the potential bottom of the price of Bitcoin in the future will be much higher than $30,000 for the near future.

there is no reason for mining companies to sell Bitcoin because mining will be profitable if the price rises above $30,000, but these estimates vary according to many variables.

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- Jay -

Quote from: Rruchi man on September 29, 2023, 02:24:36 AM

As the halving will increase profit in investment for hodlers, it will reduce the reward for mining for miners to half.

If the event increases the profit of holders then the value of the halved mining reward will also increase.

For comparison, miners earn 6.25BTC which is about $170,000 with the current bitcoin price of $27,000.
The halving will drop the reward down to 3.125BTC but if there is an increase in the market value of bitcoin to 3× (which is a conservative amount), the value of the mining reward then will be $255,000, which is significantly higher than the current value. The downside is that the bull run does not come with the halving but several months or a year after.

Quote from: Rruchi man on September 29, 2023, 02:24:36 AM

I imagine that every miner is also hodling bitcoins and will still benefit the other way from the halving. Am I wrong? Is there anyone amongst us who is strictly a miner that depends on the rewards from mining as income to sort expenses and is not hodling any?

All miners invariably hold bitcoins since they are competing to win the mining reward. They need to cover operational cost regularly which will be affected by the halving.

Quote from: Rruchi man on September 29, 2023, 02:24:36 AM

How should miners prepare for the halving?

I imagine there will be a temporary drop in hashrates if some rigs close down due to high operational cost and a halved reward. This will balance out after some time if the market enters a bull run.
Although I expect they will be preparing for it and have already started saving from their current gains.

- Jay -

Rruchi man

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The mood of expectation that HODLers of bitcoin are in for the halving that is expected soon is not the same mood that miners are in for the simple reason that;

As the halving will increase profit in investment for hodlers, it will reduce the reward for mining for miners to half.

I imagine that every miner is also hodling bitcoins and will still benefit the other way from the halving. Am I wrong? Is there anyone amongst us who is strictly a miner that depends on the rewards from mining as income to sort expenses and is not hodling any?

How should miners prepare for the halving?

Topic: The effect of bitcoin halving on bitcoin mining. - page 2. (Read 376 times)