Topic: Thoughts on the future of mining? (Read 6750 times)

I'm not so sure that he'll live for +120 years from now...

The creator of Bitcoin might just create another one called Bitcoin-expansion or something, which after the main Bitcoin finished all 21 million.

i used to think bitcoins where usless because they runn out of bit coins after a while. but if there are alot of bitcoins in circulation thats fine. i think btc will succed

No more mining in future once Bitcoin and Litecoin ran out of juice, everyone is just trading..

This is the problem with technology. People not in IT field will slowly lose out...

Mining is currently exploding far past what BTC market value will support, if you intend to be a pro-miner right now then good luck. In comparison hardware prices are high, if you really want to be a miner then you have to pay that price to be one and not expect to hit a break-even. But that is at today's price. If by some miracle Bitcoin hits $500 by the end of the year, miners will be having a pretty good day with each ASIC becoming a winning lottery ticket.

Really the fact that mining hashrate has gone exponential is astounding news on its own. This means that despite the profit-loss apparently many miners are not in it for the money, and more for the cause. People are still buying rigs despite negative ROI on most of it.

Mining as an industry is still evolving and changing, with many new players in the market very soon. At some point hopefully Bitcoin's market value goes up again like it did in April, followed by a flattening curve in hashpower rate when ASICs have finally saturated the market. It will likely happen but not for some time yet, but no one really knows what the future is. Miners in a serious frame of mind are taking a very large bet on Bitcoin's dominance in the future.

I feel many views of this are very short sighted, not taking into account the long term prospects of this emerging business. One must be very vigilant in predicting possible futures in terms of hashpower, difficulty, and overall market activity in Bitcoin and in the fiat world as well.

The network is ready for a much bigger world in the end, only time will tell if all of this hashpower is justified. In a possible future world where everyone is using digital currency, a Petahash will look like nothing as we reminisce of these early days. Or Bitcoin is ultimately a failure and ASICs are expensive paperweights. Either reality is possible, to be a miner is to know this fully.

i was thinking, with manufacturers making 400gh/s units to deal with the rising difficulty, the difficulty would rise even faster. as a result those 400ghs will be like the avalons of today, struggling to get returns.

It's not really the same. We provide virtual rigs, that our customers can control. It's much more analogous to owning a rig at home, where you can increase or decrease the power, change pools and (in the future) change which coins you mine for, even change the mining software you use will be possible on our platform as it develops.

Adrian

bitcoin isn't, but mining certainly is

Random though here:

I think the main problem with bitcoin mining is that while the network needs the largest number of user possible running as high a hashrate as possible to increase the security of the network (so long no single miner has over 51% of the total network hashrate) and increase transaction speed, the way mining works it actually "punishes" the increase in number of miners. The difficulty self adjusts every 2106 (or was it 2016) blocks so that it always takes about two weeks to mine that same amount of blocks. That being said, the more miners there are, the less everyone gets. Sure, whoever has more hashing power will always get more coins, but even then if one single person has a rig which is ten, one hundred or one thousand times as much hashing power as anyone else, if there are enough miners this miner will still only be getting a small fraction of the coins mined in those 2106 blocks.
What really matters nowadays is not how much hashing power you have, but what percentage of the networks hashing power you hold, and the more miners that join in the less percentage of the total hashing power of the network you will hold.
It seems to me that it makes very little sense for the network to need more miners, and yet reward the increase in the number of miners by giving each one smaller rewards for mining.
Just a thought, though...

Well, I have never tried mining, but I've heard from others that the difficulty is going to explode!

imao btc will take longer before becoming obsolete.
btc is still in the age of social infancy, it takes time becoming accepted to the masses

we saw all other crypto panting efforts to emulate his success even if they offered some improvements, but no one succeded

So well put. I couldn't agree more.

This statement speaks to me on many levels. When I discovered Bitcoin I was too broke to really do anything with it. Then when I did start playing with it I made some money, but not nearly as much as I could have made if I just held until Spring of this year. Now I am at the point where I have studied mining from a business aspect and I just don't see it as a viable option right now. Trading is alive but the real arb opportunities are so far out of reach of those with average resources. So now I am thinking to myself...what's next? I have always dabbled in Litecoin here and there. I even made some money in it. But what is the real future of it? Where is the innovation? I ask myself AND everyone else these questions because eventually I would like to have a hand in it all. Just not sure exactly how to go about doing it yet. I want to be active in this point of the crypto movement but I am at a stand still trying to figure out what will be most profitable to me and will it ultimately push the progression of Bitcoins or alt-coins.

I want to be a player. But right now I am simply a confused enthusiast.

BitCoin may TECHNICALLY be mineable until 2140, but for all practical purposes it's got a year, maybe 2 of useful mining left in it.  By then the difficulty will be sky high and no one can predict the price.  There will be some coins left but it won't be worth the effort.

And all those ASICS everyone pissed their pants over will be USELESS!

Good rant. I think a lot of people are going through your same thought process. Bitcoin is in an intermediate phase. New users on the scene are not exactly early adopters, but it's still not yet mainstream.

I like what Bitpay is doing. They are the Bitcoin pioneers. Creative entrepreneurs are the people who are capitalizing on the big opportunity. Mining is certainly a real business, but it's not like it was in the beginning. There may be a mixed message about what opportunities really exist in the Bitcoin business eco-system for new participants?

I just worry that maybe as mining centralizes so early on, with so many coins left to be mined, dissent in the community could stifle growth. Anyways, I think there's a lot of utility for Bitcoin as it is, and that it can even grow without new innovations to propel it further.

Profitable mining companies should think about taking some of the profits they earn from bootstrapping the Bitcoin network, and funneling them into other businesses that are bootstrapping Bitcoin further in different ways.

A ton of this conversation is conjecture based on the 'fact' that 1 BTC = ~ 120 USD.  Less than a year ago, it was a 'fact' that 1 BTC = ~ 10 USD.

I am seeing the BTC to USD conversion rate jumping over 130 USD now.  Who is to say in December that it won't be a 'fact' that 1 BTC = ~ 500 USD.  Then all of those people who were like 'BTC is dead, stupid groupies jumping on the bandwagon buying overpriced asic mining equipment with the difficulty where it is at now are so stupid and make me so mad.' could kindly take back all of their bitching.

There is also a chance that BTC could tank due to regulation or something.  Personally, to me it is so hard to get in on the game (and pretty unfair...  its too hard to get into the mining game anymore, with people who were GPU mining and built up a thousand or more BTC, which then jumped to being worth like 100k - they are the ones who have the dough to buy a 10k avalon or a 30k minirig).  But someone like myself, kind of like the next generation of enthusiast - I am getting to the point where I'm growing uninterested in BTC.  I'd rather put my efforts into LTC or other cryptos.  But to say there is only room for one crypto is just naive...  BTC is the first generation of crypto... Its only the beginning for this shit.

I guess I would really like to see the BTC hoarders making BTC more available to the masses.  BTC could easily die (due to the inevitable inflation which will eventually squash the value...  it may jump to 500 in December, but its definately not going to stay up there...  There arent enough in circulation, and it is at this point simply too dificult to obtain BTC for anyone outside of enthusiasts with time to spend on it.

Bleah, just a rant....

What's better model, cloudhashing leases of bonds?

Byteminr looks like a cloudhashing clone.  You even use KNC miner as well.

This is exactly why we've started https://www.byteminr.com.

Now that CPU and GPU mining over for most people, we want to make sure many people can still take part in bitcoin mining to keep the network diversified. Our intention is provide access to the cheapest power we can (within reason) and best generation hardware so that mining can remain viable for the masses and not just the large investors who are currently putting in many Mil $USD into major infrastructure for mining to try to control the supply of new coins. The network needs diversity.

If you do your homework on the latest mining technologies and make sure you're buying the latest model, you can still make a good return on your investment.  We're just right in the middle of a technology leap.  I also think that mining is kind of fun, so I'll do it regardless.  Just looking for a way to get free electricity at the moment.

I would expect that in 6-12 months or so, once asics are being made at the current limit for microprocessor chip size (22nm?), there will be a leveling of the playing field and everyone will be able to get their hands on the same rigs that the big operations are using.  That may happen sooner because I don't think the generic chip manufacturers overseas are able to go much smaller than 28nm.  If you invest in a 28nm ASIC, you're probably going to do OK...assuming you don't buy it from Butterfly Labs.

Does anyone know what percentage of mining rewards the "processing fees" currently make up on average?