Bitcoin price will be deflated!!! by block halving!!!!!

[angelakay124]

As I think bit coin price will rise after reward get halved. If miners even can't get the money they invested in mining then they won't mine bit coin and if they do they try to sell it in higher prices than the present price. You may say the other traders who are holding will sell it in normal price but I think after they see lots of selling bid at higher price they also like to get that price for their bit coin. Thus I will store bit coin to enjoy that rise in bit coin price. I am not a expert and this is my personal view.

[medUSA]

Who has inside information on what miners are doing now? Are they selling everything?

They can't be selling everything, you don't need insider information to understand this.

I can't agree with that. Mining farms are built with fiat. That includes building costs, hardware purchases, and backup generators. The infrastructure could be financed with loans. Loans have to be repaid, or owners may want to sell mined bitcoin to offset initial investments until the fiat breakeven point.

Further, you don't take into account that halving means that the miners' revenue will also be halved. But revenue is not profit, so, after the halving, they may actually begin suffering losses...

They will not suffer losses once the mining farm is operational. As long as the farm is mining, I can safely say that mined coins will always cover operating costs. Contribution to invested capital will be slower after the halving, but it is still profitable to continue mining.

[deisik]

Who has inside information on what miners are doing now? Are they selling everything?

They can't be selling everything, you don't need insider information to understand this.

I can't agree with that. Mining farms are built with fiat. That includes building costs, hardware purchases, and backup generators. The infrastructure could be financed with loans. Loans have to be repaid, or owners may want to sell mined bitcoin to offset initial investments until the fiat breakeven point.

Backup generators, lol. You don't even see that your post is self-contradictory (this part, and especially the next part). Miners mine for profit (I guess this won't be a matter of dispute). That means once they hit break-even they don't need to sell all their newly minted coins but only a fraction to compensate for operating costs...

I guess you have to decide for yourself whether miners earn profits or not. If they do, they don't need to sell all their mined coins

[deisik]

They will not suffer losses once the mining farm is operational. As long as the farm is mining, I can safely say that mined coins will always cover operating costs. Contribution to invested capital will be slower after the halving, but it is still profitable to continue mining.

I'm singularly curious if you argue just for the sake of argument. Once the Bitcoin halving occurs, miners will get half as much what they earned before the halving. If their profit margins are not high enough to cover their operating expenses with twice as less (yeah) revenue, they will bear losses and will have to cease mining. But if, nevertheless, their profit margins are high (and they already got back their capital expenditures), then they don't need to sell all their coins in the first place...

You are granted an opportunity to choose where exactly you fail

[okae]

if we take as an example gold or diamonds, are their price deflates when less gold or diamonds reach the market? NO

why will it happen with bitcoin then? we can see this every time that happens with an alt coin, take as example what happened with LTC few time ago. IMHO i don't think that price will be deflated quite the opposite, bitcoin price will grow and will bring to miners what they need to continue mining, a high price for bitcoin.

[deisik]

if we take as an example gold or diamonds, are their price deflates when less gold or diamonds reach the market? NO

why will it happen with bitcoin then? we can see this every time that happens with an alt coin, take as example what happened with LTC few time ago. IMHO i don't think that price will be deflated quite the opposite, bitcoin price will grow and will bring to miners what they need to continue mining, a high price for bitcoin.

They would need twice the price and need it fast at that (to keep their profits unscathed). Given that they are not the only ones who are supplying coins to the market, this is not possible just because their supply of coins is halved...

[medUSA]

Backup generators, lol. You don't even see that your post is self-contradictory (this part, and especially the next part). Miners mine for profit (I guess this won't be a matter of dispute). That means once they hit break-even they don't need to sell all their newly minted coins but only a fraction to compensate for operating costs...

You don't seem to think things through before you reply.

Not all mining farms are built months or years ago, newer farms may not have reached break-even point. You have said so yourself, "once they hit break-even". How about before the "once"? Before the farm break-even, owners could sell all their mined coins. There are many farms out there built at different times. Yet, you seem to believe each and every one of these farms "can't be selling everything (bitcoin)".

I am serious with "Backup generators". I have seen photos from here of Chinese mining facilities with backup generators.

[deisik]

Backup generators, lol. You don't even see that your post is self-contradictory (this part, and especially the next part). Miners mine for profit (I guess this won't be a matter of dispute). That means once they hit break-even they don't need to sell all their newly minted coins but only a fraction to compensate for operating costs...

You don't seem to think things through before you reply.

Not all mining farms are built months or years ago, newer farms may not have reached break-even point. You have said so yourself, "once they hit break-even". How about before the "once"? Before the farm break-even, owners could sell all their mined coins. There are many farms out there built at different times. Yet, you seem to believe each and every one of these farms "can't be selling everything (bitcoin)".

If you have problems with proper understanding, I can explain it to you. "They can't be selling everything" means that some of them (or just one) don't sell all the coins they mine. In other words, that some newly mined coins won't be sold. If I wanted to say what you are trying to ascribe to me, I would have said "None of them can be selling everything". But nevertheless, show me here a mining pool which was not "built months or years ago" that would have a significant share of hashing power...

Or just any new mining pool that would be of relevance, for that matter

[medUSA]

<snip>
But nevertheless, show me here a mining pool which was not "built months or years ago" that would have a significant share of hashing power...
Or just any new mining pool that would be of relevance, for that matter

You are deflecting. Business model of mining pools and mining farms are very different. Initial investment of a pool is so much lower than mining farms. Pools do not need to sell a large portion of mined coins to replenish initial investment (to break-even) while mining farms do.

Edit (Responding to the comment below):
That is what I was thinking, mining pools are not very relevant to the discussion. Why did you bring it up in the first place??

[deisik]

<snip>
But nevertheless, show me here a mining pool which was not "built months or years ago" that would have a significant share of hashing power...
Or just any new mining pool that would be of relevance, for that matter

You are deflecting. Business model of mining pools and mining farms are very different. Initial investment of a pool is so much lower than mining farms. Pools do not need to sell a large portion of mined coins to replenish initial investment (to break-even) while mining farms do.

It seems that you are distinguishing between mining pools and mining farms. No problem. But in this case the mining farms you are talking about are massively irrelevant to the question discussed, since 1) we (you and me) are talking about miners (not just farms or pools), and 2) they (farms) don't supply even a few percentages of the mined coins (as you separate them from pools). Thereby you volens-nolens confirm that miners (which are mostly pools in terms of new coinage) don't need to sell (a large portion of) their coins (as you said yourself)...

Quod erat demonstrandum