What happens to Chinese mining companies if there is no halving price rise? - page 2.

Yakamoto

legendary

Activity: 1218

Merit: 1007

Quote from: techgeek on March 02, 2016, 12:28:16 AM

They still get paid daily as mentioned.

I`m sure it wont hurt them at all. Unless bitcoin really dropped back to the $100 valuation or something drastic then they would force to downsize.

Most already made back their money I`m sure.

I'd say that it is most likely for most of the miners to have made their money back at this point, but there may still be other things in the background that they have to pay for. The good news is, however, they have a massive infrastructure system to work with, and thus likely won't have to worry about not mining enough.

I think anything below $250 would probably force a lot of industrial miners out of the Bitcoin economy, but we hopefully aren't looking at any values as low as that in the near future.

techgeek

hero member

Activity: 826

Merit: 1000

They still get paid daily as mentioned.

I`m sure it wont hurt them at all. Unless bitcoin really dropped back to the $100 valuation or something drastic then they would force to downsize.

Most already made back their money I`m sure.

pooya87

legendary

Activity: 3472

Merit: 10611

nothing will happen to them even if the bitcoin price stays the same as it is right now. they are earning a lot of money each day and that is while they have access to somewhat cheap electricity.

kwukduck

legendary

Activity: 1937

Merit: 1001

It's almost certain that the bitcoin network will collapse after the great disappointment of the halving. I explained all the reasons before.

Pab

legendary

Activity: 1862

Merit: 1012

What will happen to wesrness company price depends from cost of input China can organise free electricity
if thay will like thay can own all btc miing becouse thay are able to colaborate westerness only fight each other

mrhelpful

legendary

Activity: 1456

Merit: 1002

The possible scenario of no increase is saying theres no demand.

Theres always demand esp when "fear" is put into the market - I`m not talking about the regular people who are informed with bitcoin. I`m focusing on people who have no idea what halving is or anything in general like that guy who sold his house for bitcoin.

When those type of people see buy orders come in basically..but lets say the worst case scenario for the mining companies is only down sizing rigs and eat a loss and try to make it back in some other way.

Meuh6879

legendary

Activity: 1512

Merit: 1012

Mining farm can sell bitcoins at 800 USD only ... and what ?
bitcoin price rise ... because supply always have the last word in A CLOSED MONETARY NETWORK.

LMGTFY

hero member

Activity: 644

Merit: 503

Quote from: Amph on March 01, 2016, 01:42:42 PM

Quote from: FruitsBasket on March 01, 2016, 11:05:10 AM

Mayby this is a stupid question, but is this the first block halving ever?
If it has happened before then I don't understand why people always stress about it.

because it is not the same thing, the first havilgn was not seen as a great thing because, it was from 50 to 25 and because the user base for bitcoin was very small back then, no comparison at all

each halving is much stronger than the previous one, you will se the next halving(6.25) will be much more prominent than this one

Are you saying the risk increases (exponentially?) with every block reward reduction? I'm sceptical, to be honest. Post-halving, less efficient miners may stop rising - if that happens difficulty will fall, miners will (re)enter, difficulty will adjust, and the system will settle to a new equilibrium once again. What scenarios would prevent equilibrium?

I'm not sold on the idea that the first halving was no big thing, or that future halvings will be more prominent - but at this point we've only had the one halving, so we honestly don't know. I'd expect the importance of the block reward reduction to decline with each halving (as the proportion of block reward to transaction fees changes), but that presupposes a mature market in transaction fees. Why is it you think halvings will increase in strength?

Amph

legendary

Activity: 3248

Merit: 1070

Quote from: FruitsBasket on March 01, 2016, 11:05:10 AM

Mayby this is a stupid question, but is this the first block halving ever?
If it has happened before then I don't understand why people always stress about it.

because it is not the same thing, the first halving was not seen as a great thing because, it was from 50 to 25 and because the user base for bitcoin was very small back then, no comparison at all

each halving is much stronger than the previous one, you will se the next halving(6.25) will be much more prominent than this one

DeathAngel

legendary

Activity: 3304

Merit: 1617

#1 VIP Crypto Casino

Most of the large pools have very cheap or even free electricity. I don't expect the large miners to be affected negatively by the halving.

It's a moot point though any way as the price is highly likely to rise as the halving nears.

stoat

sr. member

Activity: 686

Merit: 270

FREEDOM RESERVE

So bitcoin will continue to be held to ransom by chinese miners? Surely chinese miners going bust will be better for bitcoin in the long run

Red-Apple

hero member

Activity: 1470

Merit: 655

Quote from: Nimbulan on March 01, 2016, 11:22:10 AM

thye will change to alt currency then from bitcoin, but i don't think that there won't be any price rise, i mean it will create panic(halving) so price will change anyway

i doubt that they are going to switch just because of this halving since the price is not that low that they can't profit. $400 is still profitable for them.

also don't forget that they are all big whales that can change the market price however they want if it comes to that.

LMGTFY

hero member

Activity: 644

Merit: 503

Quote from: FruitsBasket on March 01, 2016, 11:05:10 AM

Mayby this is a stupid question, but is this the first block halving ever?
If it has happened before then I don't understand why people always stress about it.

It's not the first halving - the first was from 50 BTC to 25 BTC, in November 2012.

I don't understand why people stress about it, either.

Nimbulan

hero member

Activity: 658

Merit: 500

thye will change to alt currency then from bitcoin, but i don't think that there won't be any price rise, i mean it will create panic(halving) so price will change anyway

FruitsBasket

legendary

Activity: 1232

Merit: 1017

Mayby this is a stupid question, but is this the first block halving ever?
If it has happened before then I don't understand why people always stress about it.

darkangel11

legendary

Activity: 2478

Merit: 1360

Don't let others control your BTC -> self custody

Keep mining I guess. Big mining boom started years ago and they knew the risk.

Amph

legendary

Activity: 3248

Merit: 1070

they can survive, the diff is slowing down, the last value was negative, they can be profitable even at $150-200(the math is simple here earning/consumption)

the consumption for their asic is ridiculous at 0.05 or less per kw/h, and the earning is still not that bad(almost $200 per month with a single unit)

BellaBitBit

hero member

Activity: 756

Merit: 500

Quote from: richardsNY on March 01, 2016, 10:03:29 AM

I think the major Chinese mining farms will surely have a plan b for when things don't go as they have planned. Don't forget that BTCC Pool is owned by the exchange BTC China. They have major influence over the price. Something tells me that Chinese exchanges will step in when there is no natural growth.

I expect this as well. They know what they are doing and most likely have a Plan B in place. All of these things (effects of halving) were probably thought out well in advance.

SFR10

legendary

Activity: 2968

Merit: 3406

Crypto Swap Exchange

They will be there always (no matter what). I'm guessing they could release new miners now (if they want to) but surely they will wait for the halving to go underway and see how it will affect their plans. Not sure what you meant exactly by "will they go under?" but I assume you mean, they'll be gone but I doubt. And lastly if miners happen to switch their mining rigs off, then the difficulty will go down and that will surely be a good news to those who will remain.

twister

hero member

Activity: 672

Merit: 502

Quote from: stoat on March 01, 2016, 09:53:34 AM

Will they go under? Can they survive on half the amount of income?

I think they can survive on half the income, the price remained around 200-220 for a lot of time last year, they did survived that and technically it will be just like that if price doesn't goes up.

25*220=5500
12*420=5040

Not that big difference, though the price should go up but if they decide to stop their operations, their place will be taken by others.

Topic: What happens to Chinese mining companies if there is no halving price rise? - page 2. (Read 1731 times)