Mining: Halving will destroy the half of us.

[naomi-the-cat]

This will cause even higher mining centralization unfortunately

[Sanugarid]

So to sustain the current mining profitability, the price has to double as the reward will be halved. But if large number of miners go out of the business - no one will escape the suffering! Expect increase in fees and longer waiting time as an immediate result of upcoming halving

Higher fees means more revenue for miners. I didn't see the latest stats, but a couple years ago transaction fees had already been contributing greatly to the revenue flow received by miners. So, if, for example, the fees collected by miners account for half of their profits now, to entirely offset the negative impact of the coming halving, the fees will have to rise twice on average. But if they are already making up the best part of the miners' profits (say, 70-80 percent or even more), the halving won't cause a dramatic plunge in the current mining profitability

Yes, there will be higher fees for miners to be rewarded from but it does not change the fact that the number of block will be halved this May. It means also a higher competition from small and huge mining farms but the question is, do rewards will keep the maintenance of the equipment and power consumption? Even they have the latest tool that is energy efficient I think it would not be enough. Small miners can still try after the halving, but if they already sees that it won't be worth it at all then that's the time they should jump into another coin.

[deisik]

Higher fees means more revenue for miners. I didn't see the latest stats, but a couple years ago transaction fees had already been contributing greatly to the revenue flow received by miners. So, if, for example, the fees collected by miners account for half of their profits now, to entirely offset the negative impact of the coming halving, the fees will have to rise twice on average. But if they are already making up the best part of the miners' profits (say, 70-80 percent or even more), the halving won't cause a dramatic plunge in the current mining profitability

Yes, there will be higher fees for miners to be rewarded from but it does not change the fact that the number of block will be halved this May

You don't get it

But let me help you. A miner's profit consists of two independent variables, i.e. the block reward (a variable set in stone until changed by halving) and the fees that she collects from the transactions included in the block (a floating variable). Then, if the network fees now constitute the majority of mining profitability (over 50%), the coming block reward halving won't make a dramatic dent in profits, even if the fee structure remains essentially the same

[Sirait]

halving day that will occur such as selecting and getting rid of small miners, but if the price of Bitcoin is higher then the small miner will still be able to survive

I am very optimistic that the price of Bitcoin will soar high after Halving Day goes well 

[deisik]

halving day that will occur such as selecting and getting rid of small miners, but if the price of Bitcoin is higher then the small miner will still be able to survive

The higher price on its own won't suffice

More specifically, small miners dancing around the breakeven point can survive only if the price keeps rising over a long enough timeframe (say, a month or longer). If this is the case, they will be able to mine at a loss and hope (read, pray) that the price goes north in the near future so they are able to sell for a profit

However, if the price just rises and then stays there, the difficulty will catch up in a short while, and their losses will come back with no chance of making ends meet. In this manner, small miners are like small businesses -- generally full of hope but more often than not ending up in pain and debt

[Botnake]

I think they already know that it's going to happen in the future, small miners will have to disconnect if they will not upgrade their equipment, that's the how the game is played here, if they are willing to continue to the business, they should prepare for this upcoming halving, and we also have our rule to help increase the price of bitcoins so miners will survive.

[Maestro75]

The halving event is coming in a few weeks, rewards for mining will decrease to half specifically from 12.5 BTC to 6.25BTC. Small miners won't be able to contain a very much low block reward it will be lesser than what they are going to spend in mining. Huge mining entities can go on while the small ones will be forced to quit unless they expand their operation.

Poolin.com is one of the mining pools out there, its Vice President talked about it and gave his opinion, " Miners using old equipment will have to disconnect after halving"

The time has come for small miners isn't it?

What matters is the overall interest of the bitcoin community and not that of few individuals. We must not think of how small miners will survive after bitcoin halving because they will survive. Those who are serious to remain in business will get bigger mining equipment to cut cost. They will devise means to remain in business. That is how miners have been surviving the quarterly halvings.

[beerlover]

There is also some people who join this with some money aside as well, which means even if they are not making a profit, not everyone joins it as something to make money forever, not every single thing they do is for money, mostly it could be something like an investment in general. So at the end of the day those people will continue, just a 100k investment could be big to you and me, but it is not for some people, plus it is still small for some people as well.

So, the middle level will continue, people who are richer than us, poorer than the whale miners will try to survive as well. I am not sure whats going to happen to everyone, I am sure all of them will be hurt, its going down half in the end so there is no way all of them profiting from it.

[deisik]

There is also some people who join this with some money aside as well, which means even if they are not making a profit, not everyone joins it as something to make money forever, not every single thing they do is for money, mostly it could be something like an investment in general. So at the end of the day those people will continue, just a 100k investment could be big to you and me, but it is not for some people, plus it is still small for some people as well

This logic is not without flaws

And its major flaw or weakness is that the people you refer to (investors) would be better off financially if they just chose to buy bitcoins with their dollars (or whatever) at a market price instead of buying mining rigs, and then simply held the cryptocurrency. It makes sense to mine at a loss only if you are already heavily invested in this business, know all of its ins and outs, and see the bright days ahead when your efforts and pains will be rewarded accordingly (like Bitcoin hitting 100k in a couple of months)

[Sanugarid]

I think they already know that it's going to happen in the future, small miners will have to disconnect if they will not upgrade their equipment, that's the how the game is played here, if they are willing to continue to the business, they should prepare for this upcoming halving, and we also have our rule to help increase the price of bitcoins so miners will survive.

There is nothing left for small miners to choose from, either they need to expand their operation to sustain their expenses relative to their suppose income but I don't think they have the guts and money to do that since there are already big players in mining industry and upgrading might be just failure in the making. These miners should be focusing on mining alternative coins, those coins that has a huge potential to play along with such great contenders. I hope the last thing in their mind is to disconnect from mining.

[Yatsan]

I think they already know that it's going to happen in the future, small miners will have to disconnect if they will not upgrade their equipment, that's the how the game is played here, if they are willing to continue to the business, they should prepare for this upcoming halving, and we also have our rule to help increase the price of bitcoins so miners will survive.

There is nothing left for small miners to choose from, either they need to expand their operation to sustain their expenses relative to their suppose income but I don't think they have the guts and money to do that since there are already big players in mining industry and upgrading might be just failure in the making. These miners should be focusing on mining alternative coins, those coins that has a huge potential to play along with such great contenders. I hope the last thing in their mind is to disconnect from mining.

They knew at the very start that this time is going to happen, they are not that dumb to not to think of the halving that will come at them especially to small miners but, what I really doubt is if they have a savings from mining because as far as I know they are only getting enough to make a daily living and the expenses they are generating from electricity consumption, So if happens that small miners are really urge to continue mining they should be putting a lot of money too, like a new capital however you are correct that the competition in mining after halving will get higher due to cut of supply and rewards. Small miners are in dilemma right now, whether to continue or disconnect.

[schuriken]

The halving event is coming in a few weeks, rewards for mining will decrease to half specifically from 12.5 BTC to 6.25BTC. Small miners won't be able to contain a very much low block reward it will be lesser than what they are going to spend in mining. Huge mining entities can go on while the small ones will be forced to quit unless they expand their operation.

Poolin.com is one of the mining pools out there, its Vice President talked about it and gave his opinion, " Miners using old equipment will have to disconnect after halving"

The time has come for small miners isn't it?

with no doubt miners situation will be bad.but in the beginning i hope!! after that maybe we gonna see some better equipment for miners and see alot of more pos mining style witch is much better.and also after halving we will see drop of price because of that.

[7788bitcoin]

Miners using old equipment will have to disconnect after halving"
The time has come for small miners isn't it?

It all depends upon individual miners whether to disconnect or keep on mining, users with renewable energy like solar might keep on mining even without any benefit to help the network with a full node. There are many selfless in the bitcoin space and they will keep on running their equipment until it become obsolete.

Expect increase in fees and longer waiting time as an immediate result of upcoming halving.

Even last week when the price had a rally the transaction with lower fees took a long time to get confirmed and some of my transaction got stuck not anticipating a jump in price all of a sudden and with the halving near our sight i am expecting longer waiting time to get a confirmation.

[South Park]

The halving event is coming in a few weeks, rewards for mining will decrease to half specifically from 12.5 BTC to 6.25BTC. Small miners won't be able to contain a very much low block reward it will be lesser than what they are going to spend in mining. Huge mining entities can go on while the small ones will be forced to quit unless they expand their operation.

Poolin.com is one of the mining pools out there, its Vice President talked about it and gave his opinion, " Miners using old equipment will have to disconnect after halving"

The time has come for small miners isn't it?

Miners that are using old equipment will have to stop their machines anyway at some point even if the halving did not took place, as we know mining equipment is always been improved upon and it will come to a point in which the old equipment will be unable to produce any profits for their owners, the only thing that the halving is doing is to speed up that process and while this will centralize bitcoin mining even further it is an inevitable process as the more efficient miners will drive out of the market those that are inefficient.

[shoreno]

The halving event is coming in a few weeks, rewards for mining will decrease to half specifically from 12.5 BTC to 6.25BTC. Small miners won't be able to contain a very much low block reward it will be lesser than what they are going to spend in mining. Huge mining entities can go on while the small ones will be forced to quit unless they expand their operation.

Poolin.com is one of the mining pools out there, its Vice President talked about it and gave his opinion, " Miners using old equipment will have to disconnect after halving"

The time has come for small miners isn't it?

Miners that are using old equipment will have to stop their machines anyway at some point even if the halving did not took place, as we know mining equipment is always been improved upon and it will come to a point in which the old equipment will be unable to produce any profits for their owners, the only thing that the halving is doing is to speed up that process and while this will centralize bitcoin mining even further it is an inevitable process as the more efficient miners will drive out of the market those that are inefficient.

speed up so it means the transaction will now be faster  ? thats great  .  now we can use more btc even in a hurry  but the only downside is that it will make things centralized  ? oh no  . i think being centralized is one of the things that crypto users hate  but no choice for others because if all will leave then that will be a disaster  but they wont do it becuase they will think that when people leave the mining scene there will be less competition so more income for them

[deisik]

Miners that are using old equipment will have to stop their machines anyway at some point even if the halving did not took place, as we know mining equipment is always been improved upon and it will come to a point in which the old equipment will be unable to produce any profits for their owners, the only thing that the halving is doing is to speed up that process and while this will centralize bitcoin mining even further it is an inevitable process as the more efficient miners will drive out of the market those that are inefficient.

speed up so it means the transaction will now be faster  ? thats great  .  now we can use more btc even in a hurry  but the only downside is that it will make things centralized  ?

Transactions won't become faster

I mean beyond what is specified or implied by the Bitcoin protocol, which is one block of transactions per 10 minutes (unless you are using LN or similar technology for off-chain transactions). But you probably already know that, don't you? Of course, if there's a dramatic surge in the hash rate, we will likely see a boost in the number of new blocks found, which will bring about faster confirmations as well, but this rise will soon be leveled out by the respective rise in the mining difficulty. And then we are back to square one (minus some miners having to pull the plug)

[arallmuus]

Miners that are using old equipment will have to stop their machines anyway at some point even if the halving did not took place, as we know mining equipment is always been improved upon and it will come to a point in which the old equipment will be unable to produce any profits for their owners, the only thing that the halving is doing is to speed up that process and while this will centralize bitcoin mining even further it is an inevitable process as the more efficient miners will drive out of the market those that are inefficient.

Nah, that wont really happen unless you are mining at high cost which is not possible. The halving wont really affect alot of miner because those small time miners are usually mining by setting up their equipment in third world country where the cost of electricity is not that high compared to Europe or US

They wont really get that much profit but they definitely wont shut down due to halving for sure

[ene1980]

The halving wont really affect alot of miner because those small time miners are usually mining by setting up their equipment in third world country where the cost of electricity is not that high compared to Europe or US

They wont really get that much profit but they definitely wont shut down due to halving for sure

If anyone is able to relocate to a third world country to set up their equipment then you cannot call them a small time miner  . If you are mining with a few equipment you are not even expecting much profit in any country as electricity is not free even in third world countries, you are just happy running the full node.

With a single Antminer S9 you cannot make profit in US or Europe but with three Antminer S9 you can still make around a dollar a day .

[Negotiation]

The semicircle really affects who digs In the case of excavation equipment  they can turn it off if they do not expect to get adequate profit and high prices They dig it because of the high price. Third world countries will not spend if not high prices. In that case, it is more likely to be closed Halving will not destroy half of us if the excavation does not affect any country it will continue to grow at its specified speed These miners can have no effect on the coin.

[EdvinZ]

Undoubtedly, halving increases the threshold for entering the mining business. This business was already risky, given the volatility of Bitcoin. Now the risks increase by 100%. I think that the future is in mining pools, where everyone can buy mining capacity, because mining is becoming a very expensive business.