Mining: Halving will destroy the half of us.

[maxdin]

This will cause even higher mining centralization unfortunately

yeah exactly. we'll meet china as a world's metropolis of mining and that is extremely sad and makes bitcoin partially pointless

[devindeysel]

In range On Miner

10 -16 Th/s

Which is Largest Percentage Of Hashrate People in

"only the Bitmain's Antminer S9K "barely breaks even" at 3 cents per kWh. This range represents 46% of all hashpower mining in the lowest quartile, and most of these will need to mine below 2 cents per kWh to remain profitable after the halving"

but there are not many places that offer such cheap electricity. If this 2-cent electricity obstacle is somehow overcome, the miners would have such thin margins that a rise in mining difficulty will force them to go offline.

[boyptc]

This will cause even higher mining centralization unfortunately

yeah exactly. we'll meet china as a world's metropolis of mining and that is extremely sad and makes bitcoin partially pointless

It's not pointless.

But, that possibly will happen because of the increase in difficulty. I think the small miners understand this even before they've started mining.

[Botnake]

But, that possibly will happen because of the increase in difficulty. I think the small miners understand this even before they've started mining.

I agree with that, those early miners if they were able to get a good amount of bitcoin and they manage it properly, they'll be able to buy good mining equipment now to prepare for every halving, this time its for the big company that will play the game, they will because they can and small miners will just not gonna survive, so instead of mining, it's better to invest our money in bitcoin and learn how to trade, still the same result if we will be successful as we will still make bitcoin in the crypto space.

[boyptc]

But, that possibly will happen because of the increase in difficulty. I think the small miners understand this even before they've started mining.

I agree with that, those early miners if they were able to get a good amount of bitcoin and they manage it properly, they'll be able to buy good mining equipment now to prepare for every halving, this time its for the big company that will play the game, they will because they can and small miners will just not gonna survive, so instead of mining, it's better to invest our money in bitcoin and learn how to trade, still the same result if we will be successful as we will still make bitcoin in the crypto space.

It's a reality.

They should have planned it from the beginning when they're aware of the halving thus, miners are also upgrading due to the hash power that it gives.

[fabiorem]

Three months ago the cost to make a single bitcoin was $8k.
Costs will double after the halving. If the market follow these costs, small miners will be able to survive. If not, they are out of business.

[poodle63]

Three months ago the cost to make a single bitcoin was $8k.
Costs will double after the halving. If the market follow these costs, small miners will be able to survive. If not, they are out of business.

if the difficulty decrease following the decrease in miners number I think it will balance out but the mining power could be a lot more centralized than before. I really hope the price will increase as much as 2x although seem impossible but if the resource required to mine a btc cost that much, it's logical.

[fiulpro]

See it is not a new thing , the miners involved in the minings knew it would happen and therefore they are prepared for handling such situation.
Mining is important not just for the miners but for the community too , the small miners would have to actually try trading and run the software to earn small amount but I do think they will walk out .
Soon enough when the last Bitcoin will be miner , the Mining will be centralized , there will be a big mining industry controlling everything. Because small miners would have to stop doing it and the ones who are not able to make it would try and earn though different ways.

[cabron]

Where do you think these small miners would go mining when they can't stand the bigger ones if they can't stand the big mining farms?

I have doubts about this, the price will go up and these small miners will be able to sell for a higher price unless these big mining farms are going to kill them by dragging the prices down.

[tbterryboy]

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?

There is nothing like destroying. Halving is not going to destroy the cryptocurrency or bitcoin community, it's only going to have a short term negative effect and as time goes on it will start to recover. It's just like the normal things we have seen happening here, like earlier this year when the price dropped temporarily after the Coronavirus outbreak, it didn't take long and it started recovering and now we have the price at $9,000.

It is not even going to end there, it will keep going up. After the halving the price will decline for sure, and that's going to be because a lot of miners that would give up due to not getting enough rewards from their work.

[fabiorem]

Three months ago the cost to make a single bitcoin was $8k.
Costs will double after the halving. If the market follow these costs, small miners will be able to survive. If not, they are out of business.

if the difficulty decrease following the decrease in miners number I think it will balance out but the mining power could be a lot more centralized than before. I really hope the price will increase as much as 2x although seem impossible but if the resource required to mine a btc cost that much, it's logical.

I have my doubts if decreasing the difficulty could mitigate the losses caused by the halving. They use the rewards to pay for the costs, after all. If this was possible, bitcoin would still be around $1000 to this day, as it would stabilize right after the first halving.

[deisik]

It is not even going to end there, it will keep going up. After the halving the price will decline for sure, and that's going to be because a lot of miners that would give up due to not getting enough rewards from their work

I don't see a lot of causal relationship here

Okay, some miners are going to call it a day for the time being, which will likely cause a temporary loss of hashing power and, as a result, a series of network congestions with fees skyrocketing (as they already are). So far, so good. But how and in what way is this going to affect market prices? If anything, higher fees typically go along with higher prices, although it can be a simple correlation or a one-way causation, i.e. surging prices leading to higher fees, but not necessarily the other way around. So why should prices decline on account of some miners unplugging their mining rigs even if they will have to?

[BitcoinTurk]

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?

Yes, everyone is eagerly awaiting the halving process, but no one wants to talk about these negative aspects of the event. Unfortunately, individual or small miners will no longer be able to earn revenue as before, and profit margins will drop to almost zero. For this reason, many small miners will have to unplug their machines with this block split. This situation will not only cause small miners to disappear from the market, but it will affect everyone, because small miners actually form a large community when they are together. We can also see that the mining shares of large pools have increased as a result of this community losing power or withdrawing completely from the mining area. Unfortunately, although the halving process seems to be nice, it is not a development that will have a positive effect.

[arallmuus]

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 .

I guess you could said so but I know a guy that only have around 10 mining equipment and mine from a third world country. Im not sure if you consider this as small time miner or not but he showed me picture of the place before and it is only a small room that fit around 30 equipment if you stack them up.

he only used two small aircon during the day and one during the night so the electricity bill isnt as high as when he used to mine from his country  :

[exstasie]

Three months ago the cost to make a single bitcoin was $8k.

Three months ago it was estimated to be $6,851: https://tradeblock.com/blog/analyzing-bitcoin-mining-profitability-following-the-halving-and-its-indication-for-price

And that's a big overestimation since it's based on $0.06/kWh prices. I assume large scale miners average less than that, some significantly so when you account for power plant load matching, co-generation plants, cheap rain season hydro power, etc. It also assumes retail prices for mining gear which is unrealistic for a large portion of the hash rate.

I have doubts about this, the price will go up and these small miners will be able to sell for a higher price unless these big mining farms are going to kill them by dragging the prices down.

It doesn't have to be a conspiracy theory with large miners trying to squeeze out small miners. Price may just go down anyway.

[el kaka22]

First of all the miners usually work at places that have very very cheap electricity or even free electricity in exchange of paying taxes. And I think it makes sense, if the electricity provided for you is state owned that means they are going to give you electricity for free in order to get taxes from you in exchange, no need to double the cost because the more you earn the more you pay in taxes anyway, so it is both like a way to help and support miners but also still get something in return.

Secondly the machines always gets better and better, sure they are not making profit right now but look like they are not making much profit when the halving happens but between the difficulty changes and the better machines coming up I am sure they are going to be alright in the future.

[rodskee]

But, that possibly will happen because of the increase in difficulty. I think the small miners understand this even before they've started mining.

I agree with that, those early miners if they were able to get a good amount of bitcoin and they manage it properly, they'll be able to buy good mining equipment now to prepare for every halving, this time its for the big company that will play the game, they will because they can and small miners will just not gonna survive, so instead of mining, it's better to invest our money in bitcoin and learn how to trade, still the same result if we will be successful as we will still make bitcoin in the crypto space.

Even if they can afford to buy new mining rigs but their location will charge them
higher amount of cost from electricity then all their
 efforts will come to nothing and Big miners will still win the competition,there are
so many small miners in the past that already
stopped operating now because they find the cost of electricity is much higher than
they are gaining from mining so instead of continues
mining they chose to stop and find other things here to get profit.

[kleinkgd]

Is it possible to discuss an increase of transaction fees for small miners? On "big" cryptocurrency related news websites they write about this possibility, but I guess it will be not interesting at all for the major part of small miners.

Regarding the future of "big miners", - you surely know that in Irkutsk (Russia) a russian oligarch pays near 0.2 RUB per kWh (for today: 0.0027 USD) for an electricity for his big farm. Surely it remain effective to mine and for the future.

[exstasie]

Is it possible to discuss an increase of transaction fees for small miners?

Fee revenue should increase as adoption increases, and also tends to surge during bubble times like 2017, but this probably won't happen squarely around the halving.

No matter what, the halving should have a consolidating effect on the mining industry.

[Mahanton]

Possibly yes, if the price doesn't increase or remains at the current level. So purchasing bitcoin from the market instead of mining will be cheaper for the majority of the miners. But those who are using alternative sources like wind power or solar panel will be exceptions for obvious reasons.

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.

It would really be on domino effect and we should anticipate that if the demand would remain constant and doesnt have any tendency to rise up for further months. Small scale miners wont really have any option but to shut it down unless if they do want to donate some money on paying up electricity bills.Its just dumb for you to continue into things which arent profitable.Of course this one would exclude to those
who've been mining with very cheap electricity even if the price doesnt react that much then it wont be a problem.In talks of fees then lets see on what would happen after the halving.