Topic: What do miners do? (Read 95 times)
I believe after the halving, miners will just go through their normal routine, and that is mining Bitcoin. Whether they will continue to mine or not is dependent on the market price adjustment. If the mining activity is still profitable then miners will continue their Bitcoin mining activity. And if in case the Bitcoin reward is not sufficient for these miners to continue their mining activity then they will stop unless they have accumulated a fund that can sustain their mining expenses until the price of Bitcoin goes up and the block reward gives them profit.
I see small-time miners either selling off their ASICs for cheaper because the mining process will become even more demanding after halving, or those with budgets buying/switching to GPU miners as some manufacturers nowadays optimize and push out products that are specifically tailored for the Crypto Miner,
Big miners will continue with what they are doing, some of them probably upscaling their models to accommodate for the increased difficulty in mining blocks and earning rewards while some of them are surely looking to outsource their mining as it's more economical that way and furthermore, it's more accessible for them to do so.
But one thing's for sure, regardless of what happens after the halving, large miners from centralized pools will continue their businesses as usual, there's nothing that's stopping them anyway, and it's too late for them to quit now especially since these types of miners in particular are the ones that dished out millions of dollars to set up sustainable mining rigs.
Big miners will continue with what they are doing, some of them probably upscaling their models to accommodate for the increased difficulty in mining blocks and earning rewards while some of them are surely looking to outsource their mining as it's more economical that way and furthermore, it's more accessible for them to do so.
But one thing's for sure, regardless of what happens after the halving, large miners from centralized pools will continue their businesses as usual, there's nothing that's stopping them anyway, and it's too late for them to quit now especially since these types of miners in particular are the ones that dished out millions of dollars to set up sustainable mining rigs.
Small miners will choose to sell all of the mining rigs because mining no longer profitable for them.
The mining sector is centralized now with almost all the hashpower in the hands of a few big pools. There are very few miners or solo miners due to the level of competition in the industry. It is what the whale miners do that is of consequence to the entire industry and it should be more of the same they have been doing already - try to consolidate more hashrate and get more blocks/profits. It is a company and they function as such with sectors allocated for keeping the miners running and adjusting to changes in the coinbase reward.- Jay -
The point is I am already well aware of how investors plan ahead halving event but what about miners?
There are two sets of small miners whose fate on whether to shut down their mining operations after the bitcoin halving will be determined by the source of electricity generation. Small miners who will face difficulty are those who pay for their electricity. Maintaining mining operations when the rewards are reduced and electricity bill hasn't will not be sustainable. However, small miners who generate their own electricity using renewable sources will be able to maintain their operations. It will be difficult but they will manage because there will be no heavy expenditure on electricity. Small miners plan ahead on how to stay in business. And electricity is a major concern for them.
Expecting the halving event, investors look forward to it even years ahead.
Many start planning out their plans around the halving event. Some buy as much bitcoin as they can during a dip while others accumulate bitcoin through dca method. The point is I am already well aware of how investors plan ahead halving event but what about miners?
Are there anything in particular they do in preparation of the halving event?
Many start planning out their plans around the halving event. Some buy as much bitcoin as they can during a dip while others accumulate bitcoin through dca method. The point is I am already well aware of how investors plan ahead halving event but what about miners?
Are there anything in particular they do in preparation of the halving event?
OP you are not specific about your question, please make it clear with the term miners and elaborate on your question so an efficient reply can be provided. If you want to ask anything about the miners I know comparison creates a reference but in the context of reference, you are eliminating the core of the question.
Hmm, from the established question what I've got is you are asking about the future of manners, bro on every halving event the Bitcoin production rate decreases the cost per Bitcoin increases as a reverse proportion, and with the increase in production cost the market value also increase, so if your concern is about the profitability of the mining Bitcoin then bro its already covered in much detailed stuff and references which available on many source but keeping it restricted to a few words I would say as far as the equilibrium of the demand and supply exist in the crypto market the mining is profitable, also its not only block reward which miners get there's a major portion of incentive n term of fees which miners earn.
Aside from their minning rewards, they could also be part of the great accumulator gathering and saving up for the halving event, as there is a higher possibility that the price of bitcoin will increase, which could also break the new ATH.
Maybe when the market has reached a new milestone, they can sell off and equip their minning tools a little more so that they can also possibly increase their minning rewards.
Maybe when the market has reached a new milestone, they can sell off and equip their minning tools a little more so that they can also possibly increase their minning rewards.
Miners are more or less like just regular bitcoin investors, they hold for long term and accumulate like investors just that get incentives from mining. They usually hodl on for a long term and when they sell it usually causes a market dip or correction.
Smaller miners after halving will simply sell off their mining rigs because it wouldn’t be profitable again or may merge with other pool miners to continue. Anyone that happens I don’t see miners been greatly affected like we put it out. The reward will be halved and base on past events price of each bitcoin will go up too
Expecting the halving event, investors look forward to it even years ahead.
Many start planning out their plans around the halving event. Some buy as much bitcoin as they can during a dip while others accumulate bitcoin through dca method. The point is I am already well aware of how investors plan ahead halving event but what about miners?
Are there anything in particular they do in preparation of the halving event?
Many start planning out their plans around the halving event. Some buy as much bitcoin as they can during a dip while others accumulate bitcoin through dca method. The point is I am already well aware of how investors plan ahead halving event but what about miners?
Are there anything in particular they do in preparation of the halving event?
A concern miners should have security as it outmost priority and focus on more ways to continue to be the number one pool miners that always have the chance to mine the block because now that the halving reward if getting smaller, more and more miners might shut down but for now we wouldn't see the adverse effects of halving until we enter bear market but for now I think they will be able to continue to run the business without any financial problems as long as Bitcoin stays above $60k.
I think many miners are also looking for what every that loves Bitcoin are also doing because they don't just validate and mine block, they also have Bitcoin with them which of course they will be happy if all their holding doubles in value, selling them at high price might help them sustain the bear market that may arises in the future.
its only a small % of miners that play on the daily whims to be affected where they switch off if they cant afford to mine for a month or 3
the majority of miners just keep mining because they have already account for their costs to cover them for a 2 year hard ware lifecycle before its time to upgrade and expand anyone..
as for the small % that do drop off it that give a small % more competitive benefit to the majority remainers
but in majority of cases the hashrate/spotrate of the last 6 months did not see miner pleading poverty 6 months ago compared to position after today, so not much alteration should come of it
the majority of miners just keep mining because they have already account for their costs to cover them for a 2 year hard ware lifecycle before its time to upgrade and expand anyone..
as for the small % that do drop off it that give a small % more competitive benefit to the majority remainers
but in majority of cases the hashrate/spotrate of the last 6 months did not see miner pleading poverty 6 months ago compared to position after today, so not much alteration should come of it
Are there anything in particular they do in preparation of the halving event?
Since halving is the period where miners start to receive half reward for Bitcoin mining, for me, I think just as investors strive to accumulate more Bitcoin before halving, so do miners also strive to accumulate more BTC while knowing fully well that their reward will be reduced into half, in other to make Bitcoin scarce, and as such remain valuable as a digital asset. Because one thing I have come to understand is that the more the reward for Bitcoin is reduced to half (i.e Halving) the more the price value of Bitcoin skyrocket due to it's limited supply for the increase in demand. Are there anything in particular they do in preparation of the halving event?
Aside from their minning rewards, they could also be part of the great accumulator gathering and saving up for the halving event, as there is a higher possibility that the price of bitcoin will increase, which could also break the new ATH.Maybe when the market has reached a new milestone, they can sell off and equip their minning tools a little more so that they can also possibly increase their minning rewards.
Small miners will choose to sell all of the mining rigs because mining no longer profitable for them.
While big miners will continue to mine new Bitcoin despite the difficulty keep increase, at least they can survive even though they earn less than before.
I don't think they're really prepare for halving events, perhaps just sell during bull run and then bought it again after next 2 years (during bear market).
Do they small miners really do that? Because if the market trajectory is correct, they'd still be able to make a profit out of mining since the price will only get higher even if the rewards have been halved, I'm sure that we will reach a floor price eventually and quitting isn't the right thing to do especially if you've been doing good as a bitcoin miner in a while now. What are you talking about earning less? That's not a problem in the long-term, it's going to balance itself eventually, this happened back then with the previous halving, and with less and less rewards, it's going to make bitcoin more scarce than usual. While big miners will continue to mine new Bitcoin despite the difficulty keep increase, at least they can survive even though they earn less than before.
I don't think they're really prepare for halving events, perhaps just sell during bull run and then bought it again after next 2 years (during bear market).
Small miners will choose to sell all of the mining rigs because mining no longer profitable for them.
While big miners will continue to mine new Bitcoin despite the difficulty keep increase, at least they can survive even though they earn less than before.
I don't think they're really prepare for halving events, perhaps just sell during bull run and then bought it again after next 2 years (during bear market).
While big miners will continue to mine new Bitcoin despite the difficulty keep increase, at least they can survive even though they earn less than before.
I don't think they're really prepare for halving events, perhaps just sell during bull run and then bought it again after next 2 years (during bear market).
Expecting the halving event, investors look forward to it even years ahead.
Many start planning out their plans around the halving event. Some buy as much bitcoin as they can during a dip while others accumulate bitcoin through dca method. The point is I am already well aware of how investors plan ahead halving event but what about miners?
Are there anything in particular they do in preparation of the halving event?
Many start planning out their plans around the halving event. Some buy as much bitcoin as they can during a dip while others accumulate bitcoin through dca method. The point is I am already well aware of how investors plan ahead halving event but what about miners?
Are there anything in particular they do in preparation of the halving event?
Jump to: