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Author Topic: What happens to the miners' reward coins?  (Read 298 times)
figmentofmyass
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October 13, 2019, 04:54:42 PM
 #21

I've seen a few people try to produce these reports by checking wallet addresses, but that seems to be quite difficult, and subject to manipulation. I think the really interesting graph would be the changes in the use of Bitcoin for retail purchases. I've accepted Bitcoin for domain name sales, but it doesn't seem to be very common.

bitpay has released some data about growth in retail usage. more or less, their findings are that as price rises, people spend more value. they call it a "wealth effect pattern":

Quote
The more valuable bitcoin has become, the more people are using it to buy stuff.  ”We have definitely seen a ‘wealth effect’ pattern when the bitcoin price increases,” says James Walpole, BitPay’s marketing manager. In other words, if you already owned bitcoin and it rose in value, selling some bitcoin would give you more dollars to spend.

they processed more than $1 billion in payments in both 2017 and 2018, so retail usage definitely seems to be growing.

dothebeats
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October 13, 2019, 05:09:12 PM
 #22

I don’t think one service can really know the motives of their buyers, nor exchanges know what will the buyer do with the coins, but I’m pretty sure one can always look as to where would the coins end and from that we can draw a line.  As for the miners, most large firms are capable of storing coins for as long as they can knowing that they have the $$$, though if things get tough, pretty sure they are doing OTC trades to not really move the markets that much.

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Wintersoldier
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October 14, 2019, 06:34:24 PM
 #23

Operating cots very higher and result from mining very lower its why I am not back with mining now, last two years maybe we can get much profit with mining but now better you buy or invest your money in altcoin and bitcoin than you want to start mining project, every day you have pay mining operating from electric to your internet access and many service needed every week for you mining tool, you have much output for you mining tools.

And basically, the reason why the cost is increasing is because the fees is so, let's take for example, bitcoin halving provides the blockchain a division of mining rewards from its current state, in this case, miners will receive less rewards from the transaction or work that they've done. In contradict to it, the halving should take's place only on cryptocurrency that has a potential market value increase. Through this, if there's less reward, its market value still is great.
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October 15, 2019, 09:01:39 PM
 #24

It also depends on the miners. The smaller ones likely join pools. And by small, I mean anyone who doesn't have more than 5% or 3% or 1% of the hash power.

They would mine in a pool, withdraw their coins, and possibly get as much as half to their favorite exchange. Until they can pay their electric bill directly in bitcoins, they will have to resort to payment gateways or processors or exchanges.

Oneandpure
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October 16, 2019, 12:27:09 PM
 #25

Miner have to cover with operating cost have higher price than how much earn from mining, last for the mining know by public many people interested with mining have higher payment for every days, after bitcoin price dump and mining participant very much earning from mining look down and hard, now mining participants look little with less earning and enjoy for invest money in bitcoin or altcoin.

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Mandoy
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October 16, 2019, 12:59:19 PM
 #26

The miners could just simply sell their coins peer to peer or just sell it to the exchanges. If they sell it peer to peer then they just need to make sure that the person they are dealing with is a payer otherwise their bitcoin is wasted. A meet up in peer to peer transactions is a good deal. To remove confusion the miner could just sell his coins to the exchanges but you are worrying if they sell it to the exchanges that the value will go down. It does not matter anyway anything could happen in the market and almost all of the miners are selling their coins to the exchanges without regard for the value going up or down, the most important part is that they can pay for their electricity and they are gaining profit.

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