If miners sell coins, where do they sell them?

[maokoto]

I guess they sell their coins at the same place that everyone else does. If they are devoted only to mining as a job, probably they sell as much as they need for their expenses, and save the rest.

[OROBTC]

Miners can keep their BTC and even do not sell them, waiting for BTC price increase.  How large is open market BTC volume - it is very hard to say - as BTC market is not regulated by anyone.  

no they cannot, they need to sell at least 1/4 of they earning for maintanance and electricity, so i believe they sell them on exchange and maybe privately? but i doubt, mostly are sold on exchange

I may be off-base here, but the below is some crude arithmetic showing my *guesses* (and the more guesses, the less accurate will be my final figures...):

1)  "Let's say" F2Pool (one of the largest, currently at some 25% of total hash-power) wins 25% of the blocks in a day.  

24 hours * 6 blocks per hour * $235 per BTC * 25 BTC per block * 25% = $211,500 won by "F2Pool" per day.

2)  Let's also say they have 500 miners (I have no idea if that would be accurate, just painting a picture here).  They would then have to pay off the various miner-members for "their share" of the winnings.

3)  "F2Pool" would also have to pay various expenses: electricity, management fees, *bribes*, etc., etc.  Let's call all of those expenses at 30% of revenue.

4)  ($211,500 / 500 miner-members) * 0.7 (after expenses) = $296 per average miner per day.  Again, I would *guess* that the average miner at "F2Pool" would be rather large, larger than the MEDIAN miner (who *might* be some guy with 20 Antminers in his basement).

The above "math" is merely an exercise of dubious value, and really more meant to invite comments from those more knowledgeable about BTC mining economics...

Perhaps the key question is how much do the pool OWNERS make per block?  That would give a better clue to how many BTC they must sell to maintain their business.  Then we would know approximately how many BTC they must exchange.

[BARR_Official]

Everybody seems to assume that the halving will cause the price of Bitcoin to rise. I assume that they believe that miners will sell fewer coins on the open market.

Miners will earn fewer coins.  Even if they sell them all as soon as they get them, there will be fewer new coins generated every day.

[MyBTT]

Miners are rich enough to mine and make a profit. That is a hard thing to do. They won't just sell their coins straight after halving. They aren't that stupid.

[Wapinter]

Everybody seems to assume that the halving will cause the price of Bitcoin to rise. I assume that they believe that miners will sell fewer coins on the open market. If miners sell directly to investors, then the drop may not have an immediate impact on sales. Also, some coins may be retained for investment by the miners. So my question is - how many mined coins are sold on the open market?

I think individual miners go to bitcoin exchanges to sell their bitcoins just like you and I sell our.As far big organised institutional miners,I think most of them hold their bitcoins in order to control the price and dictate the market

[LarryHocks]

Everybody seems to assume that the halving will cause the price of Bitcoin to rise. I assume that they believe that miners will sell fewer coins on the open market. If miners sell directly to investors, then the drop may not have an immediate impact on sales. Also, some coins may be retained for investment by the miners. So my question is - how many mined coins are sold on the open market?

I think individual miners go to bitcoin exchanges to sell their bitcoins just like you and I sell our.As far big organised institutional miners,I think most of them hold their bitcoins in order to control the price and dictate the market

Yeah. I think the big mining pool got an account on the largest exchanges and enabled autosell.
This way they can cash out their rewards directly to fiat to pay for electricity bills

[faridkifly]

I do not know for sure how they sell wherein.
but I'm sure if they sell after getting a lot of bitcoin. and they sell it when the price is high. 

[BlueStackz]

Miners have no controls over Price increase of bitcoin. They can only contribute to decrease in price. Only investors are in a position to increase or decrease the price of bitcoins.

[Jet Cash]

Miners have no controls over Price increase of bitcoin. They can only contribute to decrease in price. Only investors are in a position to increase or decrease the price of bitcoins.

Yes - but are some investors miners, or are some miners investors?

[Kprawn]

The miners can manipulate the price if they wanted to, or should I rather say, if they can afford it. The longer they hodl, the higher the price, but the electricity and other expenses has to be paid, so

this cannot be done for a long period. If the price climb too high, more of them will start to sell and the price will go down again. The halving will surely have a impact on the profitability of mining, and

some of them will be forced to stop mining for a while. Most of the trade are done on Chinese exchanges.

[Za1n]

The miners can manipulate the price if they wanted to, or should I rather say, if they can afford it. The longer they hodl, the higher the price, but the electricity and other expenses has to be paid, so

this cannot be done for a long period. If the price climb too high, more of them will start to sell and the price will go down again. The halving will surely have a impact on the profitability of mining, and

some of them will be forced to stop mining for a while. Most of the trade are done on Chinese exchanges.

Exactly. Any endeavor with on-going expenses like mining will require converting some of the product (in this case BTC) into cash to pay for those expenses. You might be able to hold out a month or two if the price goes down. but then even this can be a risky strategy. If the price would continue to move down, when you are finally forced to convert some BTC into fiat, you might have to sell more than if you just did it at regular intervals.

Also as a side note, I believe I read somewhere that the biggest miners have actually negotiated with large buyers private sales of the generated BTC, so for this group of people the daily price changes are not as big of a concern. I am sure any such agreements would have the BTC halving taken into consideration and payments adjusted accordingly when the time comes.

[Dassi]

Everybody seems to assume that the halving will cause the price of Bitcoin to rise. I assume that they believe that miners will sell fewer coins on the open market. If miners sell directly to investors, then the drop may not have an immediate impact on sales. Also, some coins may be retained for investment by the miners. So my question is - how many mined coins are sold on the open market?

There is no easy way of knowing how many mined coins are in the open market. I guess the miners can find that out for you but it will take ages and a lot of headache.

I think miners sell only when they need money and keep the rest till prices rise. So most of their btc is in cold storage most times.

[DimensionZ]

I have a friend who is mining alt coins and he told me he only sells enough to cover his bills, rent and food for the month and saves the rest. He is investing in more hardware if there is profit to be made like with Ethereum. Unfortunately he lost a lot of coins on Cryptsy when they stopped paying out. I think people should be very careful where they are selling coins now as the hackers go for the big exchanges.

[Anon_7716]

Each miner had a strategy each to get the perks themselves, and every miner has the authority to keep them or sell them BTC. So the price of the Bitcoin is not dependent on the miners but depending on Market of BTC. The more the market needs the BTC and the fewer supplies BTC BTC price then the higher. Vice versa, but I believe the BTC will have a price that is very challenging for us and can benefit when using Bitcoin. The price depends on the market and the BTC can swap Price BTC is a transaction.

[eternalgloom]

Large scale mining operations would typically sell enough to keep their operation running, paying for electricity and perhaps hardware in fiat.
I'd guess they just sell their coins at a trusted exchange.

Different mining operations have different practices, some will keep a large percentage of their profits in BTC, and some will exchange everything for fiat.
It would be interesting to see some statistics on this, I know a few operations have mentioned this in interviews etc.

[alyssa85]

I think they sell them over the counter to the Chinese exchanges for a discount, and then those (fee free exchanges) sell them for market value to their speculators.

Some of them are starting their own trading platforms to shift the coins:

http://www.coindesk.com/bitkan-1-6-million-series-a-bitmain/

Beijing-based mining giant Bitmain has invested $1.6m in bitcoin-focused data and trading services provider BitKan.

[acroman08]

Everybody seems to assume that the halving will cause the price of Bitcoin to rise. I assume that they believe that miners will sell fewer coins on the open market. If miners sell directly to investors, then the drop may not have an immediate impact on sales. Also, some coins may be retained for investment by the miners. So my question is - how many mined coins are sold on the open market?

yeah im curious too on how many coins do they sell, do they sell half of theyre mined or just enough to pay for theyre bills.

[Yipdard]

A lot of mined coin are sold in the market.

[quentincole32]

Everybody seems to assume that the halving will cause the price of Bitcoin to rise. I assume that they believe that miners will sell fewer coins on the open market. If miners sell directly to investors, then the drop may not have an immediate impact on sales. Also, some coins may be retained for investment by the miners. So my question is - how many mined coins are sold on the open market?

yes its just assume,i'm sure no one can make sure what will happen to bitcoin price when bitcoin halving come. miners will sell their coins to exchange,a big miner will have partners to sell their coins,its what i think so far.

[bitcoineverything]

I think during halving, miners would still sell some of their bitcoins for electricity and more. They probably sell it through trading. They could also control the price of bitcoins they are selling. They might also sell them through exchanges.