Is halving a big damage to mining pools?

[BlackHatCoiner]

Year 2020. In these days there are no people who mine blocks by themselves. As I can see only mining pools generate the new bitcoins. Therefore, halving their reward might be a little damaging... Do you think that this will be a reason that bitcoin price will increase? Due to the law of demand and supply?

I believe it will surely increase but not above 15000$. If the price had to be doubled on each halving then it would be a bubble again like back in 2017.

Now, your thoughts.

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[BitMaxz]

What do you mean by damaging the pool?

Mining pools are just operators who hiring miners to mine blocks. The only thing will happen after block halving is they get halved rewards per block from 12.5 BTC to 6.25 BTC.

Since block halving is done we will see some miners will exit on the market and stop mining on the pool because they get fewer rewards compared to the past. Which I think will lead to a slow Bitcoin network during transactions and the pool operators will get less and less rewards.

After the block-halving, the supply will reduce which will lead to the price increase, and demand will increase due to attractive prices increased with the help of low supply.


I don't see that it will cause some damage to the mining pools after block-halving but I think only miners who will suffer due to halved rewards they get and due to operational cost.

[billykannithi]

I think halving will effect to mining pool because Block reward is down a half. But maybe the bitcoin's price will increase, so their profit will increase too, maybe there will balance.

[hd49728]

If there are entities to be affected, they are small mining pools and small miners who don't have enough financial funds to keep mining with temp negative profits in a few months. Big mining pools and strong miners will survive and earn huge profits. I do believe it because price needs time to take off after the halving. Bitcoin has rise more than two times since its latest bottom so I am sure it will take a few months to see bitcoin rising to higher range. Despite of some months of stuck around $10k, bitcoin will do take off to the range $13k later this year.

[Darker45]

There might be some shrinking of the mining pools because of miners quitting due to the reduced reward. But this is no reason for the price to increase. This may have nothing to do with the law of supply and demand. The increase in price is primarily driven by the demand increasing while the supply decreasing. And that has nothing to do with mining pools.

$15,000 is possible. $20,000 is possible. Even $50,000 is possible. Everything is just a matter of time. There is nothing that says the price will double in each halving. That depends purely on demand.

[ultrloa]

For sure it has a damage since for rising up the difficulty provably the small time miner will get affected to it since it could lower down their profit and running  their operations will not good since they might not gonna earn with  it and I wonder on what will happen in future if all  the miners will close down  and hopefully this scenario will not happen towards this industry.

[mu_enrico]

Mining pools (per se) are just computer server that distribute the work to the miners. I think the miners will get the blow by reward reduction, not pools.
From this $10K BTC price currently, the situation is like $10K/2 = $5K pre halving. So if miners can't survive $5K pre halving, they will turn off their farms.

[gentlemand]

As I can see only mining pools generate the new bitcoins.

All pools are are administrators and distributors. Some may mine themselves. Others won't even have one laptop allocated to mining. And if a mining pool goes down or looks like it's trying to screw Bitcoin or the miners who are using it then it'll be abandoned en masse and be forgotten.

Miners are service providers to users. Pools are service providers to miners.

[davis196]

As I can see only mining pools generate the new bitcoins.

All pools are are administrators and distributors. Some may mine themselves. Others won't even have one laptop allocated to mining. And if a mining pool goes down or looks like it's trying to screw Bitcoin or the miners who are using it then it'll be abandoned en masse and be forgotten.

Miners are service providers to users. Pools are service providers to miners.

That's right and I think that we should stop with the BTC halving discussion.There's nothing new that we could add to the discussion and asking such "Will the halving damage the BTC miners?" or "Will the halving damage the mining pools?" questions is pointless,because nobody can give a clear answer now.The Bitcoin halving is behind us and we will see the impact of the halving over miners and mining pools in the next few months.
By the way,this thread doesn't belong to the Speculation forum,since we don't discuss the BTC price.

[Febo]

Is halving a big damage to mining pools?

Only thing to damage mining pools is if someone hack them and steal their bitcoins. But that is danger of any centralised Bitcoin service.  They need to work on the security a lot.

[stompix]

Mining pools (per se) are just computer server that distribute the work to the miners. I think the miners will get the blow by reward reduction, not pools.
From this $10K BTC price currently, the situation is like $10K/2 = $5K pre halving. So if miners can't survive $5K pre halving, they will turn off their farms.

Pools are living off the fees, if they were getting 1% of the reward before the laving they were getting 0.125 now they are getting 0.062.
It's the same as credit card purchases if the shops get hit with a 50% drop in sales, so will the payment processor who is seeing less volume and less income.

So, basically pools will be hit just as hard as miners.

[Jating]

Year 2020. In these days there are no people who mine blocks by themselves. As I can see only mining pools generate the new bitcoins. Therefore, halving their reward might be a little damaging... Do you think that this will be a reason that bitcoin price will increase? Due to the law of demand and supply?

I believe it will surely increase but not above 15000$. If the price had to be doubled on each halving then it would be a bubble again like back in 2017.

Now, your thoughts.

It is going to be survival of the fittest here, if you have old rigs then definitely you are not going to survived at there will be no profits for you. However, I think those miners have prepared themselves for the worst. Heck they could have been preparing this for years ahead and slowly migrating their old hardware to the new one to be able to cope with the difficulty.

[smyslov]

Year 2020. In these days there are no people who mine blocks by themselves. As I can see only mining pools generate the new bitcoins. Therefore, halving their reward might be a little damaging... Do you think that this will be a reason that bitcoin price will increase? Due to the law of demand and supply?

I believe it will surely increase but not above 15000$. If the price had to be doubled on each halving then it would be a bubble again like back in 2017.

Now, your thoughts.

Bitcoin have proven itself, the bubble is over there's no need to consider Bitcoin as another bubble, there are so many prediction that Bitcoin can go 6 digits, experts are predicting that level, and the community are not treating this as a bubble, I expect the price to double but that doesn't mean that it's a bubble.

[justdimin]

Pools will make less amount of course because the amount they are cutting from the miners are going to drop as well since the miners will not be making as much hence they won't be paying too much neither. However, let's not forget that all the big whale miners are making their own pools as well, they are so big that they are mining blocks themselves, so there is no "people are not mining all by themselves" or anything, bitmain for example is big enough to mine all by themselves.

So, some people still do mine all by themselves with all the power they have, which still doesn't change the fact that there will be some increase in price because they are not making as much money as they normally do so they will want to make the old amount by increasing the price or at least increase the fee.

[gentlemand]

Pools will make less amount of course

Not necessarily. Some pools give miners the block rewards but keep the transaction fees for themselves. They're likely to be doing considerably better at the moment than they were before. I can imagine they'll be slowly abandoned as fees become more important.

[pixie85]

It was already explained above why pools will not take a hit.

Even if you don't mean mining pools but miners the situation is the same. They will not be damaged in any way because the market will adjust to the situation just like it did in the previous halvings. Bitcoin will not remain at 10 thousand for years because it would mean mining at marginal profitability. We should be at 12 thousand or more but right now there's not enough of those expensive post-halving coins on the market to change the price.

[Upgrade00]

You should note that there are other variable involved like mining difficulty, transaction fees and others. All this adjusts itself to make sure the system keeps running. As said above some miners might close down due to the reduced fee, some others could see it as an opportunity to set up. The effect of the halving would level out in a couple of months, and then we look forward to the next one and then the next one; till the total supply has been mined.

[pooya87]

Year 2020. In these days there are no people who mine blocks by themselves. As I can see only mining pools generate the new bitcoins.

mining pool is just a server that the individual miners meet each other to share the work. it is still miners who "generate new bitcoins".

Do you think that this will be a reason that bitcoin price will increase?

no it won't. the fact that the "workers" earn less money will never ever affect the price. the only reason why price would go up or down is when the demand for bitcoin increases or decreases respectively.

If the price had to be doubled on each halving then it would be a bubble again like back in 2017.

wrong. a bubble does not happen just because price has increased an arbitrary amount (like 2x). a bubble happens when the price goes higher than the intrinsic value.
so if you think $15k is not possible the only valid argument that you can make is about why you think bitcoin's intrinsic value is less than $15k and not more than it?

[crwth]

Just like what others discussed, it's not "mining pools," but the miners themselves are going to take the hit with less BTC rewards. IMO, it's us, the users who transact BTC who will get the hurting the most. As an individual, no, but the transactions as a whole. It's going to be more expensive if there are fewer miners around.

[Smitty Werben Man Jensen]

Halving did make the Bitcoin rewards from mining to 6.25 BTC, but I'm sure the miners won't complain, the price of Bitcoin is still reasonable, the miners still accept it because they haven't lost profits, if they have been mining Bitcoin since 2010 there's nothing to worry about it, if they have Bitcoin reserves to repay losses if necessary