Mining benefit is going done!

[zh4d0w]

Hello, everyone!

The difficulty of BTC is increasing aggressively. The mining profit is getting less and less. I believe it's far from logic that miners are going to pay more electricity than what they earn! I wonder how long SHA256 could be profitable? What do you think about the future of SHA256?

[Biodom]

Hello, everyone!

The difficulty of BTC is increasing aggressively. The mining profit is getting less and less. I believe it's far from logic that miners are going to pay more electricity than what they earn! I wonder how long SHA256 could be profitable? What do you think about the future of SHA256?

The price of btc will eventually increase to compensate, that's the beauty of Satoshi's vision.
it always had (so far).
that said, network only cares about price/expense as a whole, not in any individual case.
Obviously, for POW, those with lower electricity cost will be more profitable.

[vrm86]

You need to have nerves of steel and quite large money reserves to cover unprofitable periods of mining. Even if you turn off your gear when BTC price goes down, it will loose value day by day.

Hello, everyone!

The difficulty of BTC is increasing aggressively. The mining profit is getting less and less. I believe it's far from logic that miners are going to pay more electricity than what they earn! I wonder how long SHA256 could be profitable? What do you think about the future of SHA256?

The price of btc will eventually increase to compensate, that's the beauty of Satoshi's vision.
it always had (so far).
that said, network only cares about price/expense as a whole, not in any individual case.
Obviously, for POW, those with lower electricity cost will be more profitable.

BTC price is at the same level as ~3years ago, but diff has rocketed while reward is decreased. The rule you've mentioned still does not apply to mining yet. Mining is not over, but it will become more and more large-scale business. One day home-based mining wouldn't be profitable anymore I think.

[Amph]

Hello, everyone!

The difficulty of BTC is increasing aggressively. The mining profit is getting less and less. I believe it's far from logic that miners are going to pay more electricity than what they earn! I wonder how long SHA256 could be profitable? What do you think about the future of SHA256?

The price of btc will eventually increase to compensate, that's the beauty of Satoshi's vision.
it always had (so far).
that said, network only cares about price/expense as a whole, not in any individual case.
Obviously, for POW, those with lower electricity cost will be more profitable.

actually it's the diff that compensate with the price increase, in fact with the recent increase the diff is catching up quickly, but still i see plenty of margin for profit

there are time where the diff increase regardless of the price, i guess it's because of competition, mienrs still coins between themselves

[philipma1957]

You need to have nerves of steel and quite large money reserves to cover unprofitable periods of mining. Even if you turn off your gear when BTC price goes down, it will loose value day by day.

Hello, everyone!

The difficulty of BTC is increasing aggressively. The mining profit is getting less and less. I believe it's far from logic that miners are going to pay more electricity than what they earn! I wonder how long SHA256 could be profitable? What do you think about the future of SHA256?

The price of btc will eventually increase to compensate, that's the beauty of Satoshi's vision.
it always had (so far).
that said, network only cares about price/expense as a whole, not in any individual case.
Obviously, for POW, those with lower electricity cost will be more profitable.

BTC price is at the same level as ~3years ago, but diff has rocketed while reward is decreased. The rule you've mentioned still does not apply to mining yet. Mining is not over, but it will become more and more large-scale business. One day home-based mining wouldn't be profitable anymore I think.

 go back to Dec 3 2013 and see what the story was:

 diff was  707,408,283
price was   1161

Feb 9 2017
diff is 422,170,566,883

so it looks bad

plus block reward was 25 coins

that looks worse

But the best miner was the knc Jupiter   it was well over 5000 usd  it did 550 gh and spent 1200 watts

compare it to the avalon 721                                     680 usd  6300gh and 980 watts

that is 7.35 x cheaper  11.45 x more hash 1.22 x less power  that is a about 102 times better then the Jupiter

[unholycactus]

This also pushes ASIC manufacturers to improve the efficiency of their miners.
We've come a long way since the first ASICs in term of efficiency, just try mining with one from 5 years ago.

Furthermore, if people stop mining because it's not profitable, the difficulty wouldn't be increasing as much. The balance is working out really well.