Bitcoin Miners Face Leanest Month of 2024: August Earnings Hit Year’s Low

[nutildah]

So bitcoin users want

1) low fees
2) high hashrate
3) lack of centralization

I don't see how they are going to get all of these at the same time in the future. Pick one but you can't pick all three. Maybe you can't even pick two.

We have all 3 of these right now -- why wouldn't we have it in the future?

High hash rate is the least important. Bitcoin's hash rate is so absurdly high that new scientific terms needed to be created to measure it. Whoever can mine BTC with the cheapest electricity wins.

[AVE5]

So bitcoin users want

1) low fees
2) high hashrate
3) lack of centralization

I don't see how they are going to get all of these at the same time in the future. Pick one but you can't pick all three. Maybe you can't even pick two.

Even in the future it's impossible to get them all especially to the low fee demands. Technically aware, 19.5 million out of 21 bitcoin has been mined and since miners has been playing fundamental roles in the bitcoin blockchain,  some few factors is considered against the future pertaining how miners could also be rewarded.
That's why we can't get less than expected on the transaction fee as it's a reservoir to encourage continuities to revalidations of certain criterias in the cryptographical context.
So, the crucial roles of miners rewards in the future can't be comprehend when all 21 million bitcoin has been mined.

[Wind_FURY]

Has everyone heard the news? I believe the leanest month will get a leaner month sooner or later for less-efficient miners.

👀

Japan's largest electricity company will build a facility to use renewable energy to mine Bitcoin.

Decentralization with low fees was the core promise of Bitcoin and not getting that would mean we have failed.

 

Low fees was the "core promise"? Laughable. Who said that? Roger Ver?

Imo, those are the bare minimum requirements that we need for Bitcoin to onboard millions and also be the store of value that it has been regarded as in the past. If we want to onboard everyone, fees have to stay low, possibly lower than current tx fees and transaction confirmations needs to happen quickly. I still wonder how we would fair when there are no block rewards to compensate for low fee months like August 2024.

 

If that's the actual "bare minimum", then why hasn't BCash "onboarded millions"?

Plus your post getting a merit from OP is also laughable.

[larry_vw_1955]

Has everyone heard the news? I believe the leanest month will get a leaner month sooner or later for less-efficient miners.

so does that mean transaction fees are going up or down? that's all i care about.

Plus your post getting a merit from OP is also laughable.

why would you say that? fees are an important thing to keep under control. unless you want a system where only rich people use it.

[NotATether]

Well it makes sense that August prices were the lowest of the year. It always seems to be like that every year. September too. But hopefully something happens on October because I'm not very happy to see Bitcoin under $60k for long 

[Wind_FURY]

Has everyone heard the news? I believe the leanest month will get a leaner month sooner or later for less-efficient miners.

so does that mean transaction fees are going up or down? that's all i care about.

?

That has nothing to do with how high or low fees are. Fees go up or down depending on network demand. But what actually more cost-efficient miners mean during the current period of "low profitability" in Bitcoin mining is, it will be harder for the less-efficient miners to profit or to break-even. They will either need to turn off their mining farms or migrate to a region where they could mine using cheaper electricity.

Plus your post getting a merit from OP is also laughable.

why would you say that? fees are an important thing to keep under control. unless you want a system where only rich people use it.

 

This was given to me when I was a newbie, now I'm giving it to you.

[EarnOnVictor]

-snip-
1) low fees
2) high hashrate
3) lack of centralization

I don't see how they are going to get all of these at the same time in the future. Pick one but you can't pick all three. Maybe you can't even pick two.

Hehehe...I honestly like to read news like this and I've been following similar ones since 2 months ago, it means that the low fee is so biting this time, miners should get used to it, this is what the system should look like. Mind you, the low revenue for the miners doesn't mean they are still not doing well, they are "big boys" who have tried all they could to gain more in the past, so let the low and insanely high earnings of the past complement each other. They should also know that this is the consequence of the high rate due to the past congestion, it has already pushed many to altcoins for fast transactions and low fees, and many are not returning to Bitcoin again which causes all these. They never thought of the future but were particular about the present gain then, let them get used to it and I hope it lasts.

Regardless, my responses to the above are;

1. It can never be constant
2. I guess it will be moderate
3. Bitcoin will always be decentralised.

[larry_vw_1955]

That has nothing to do with how high or low fees are. Fees go up or down depending on network demand. But what actually more cost-efficient miners mean during the current period of "low profitability" in Bitcoin mining is, it will be harder for the less-efficient miners to profit or to break-even. They will either need to turn off their mining farms or migrate to a region where they could mine using cheaper electricity.

humans seem to be willing to take alot of abuse and then more on top of that. just so they can make a few bucks. that's going to be miners oneday...  everyone is going to be shitting on them and they will be barely breaking even. what a wonderful world.

[franky1]

That has nothing to do with how high or low fees are. Fees go up or down depending on network demand. But what actually more cost-efficient miners mean during the current period of "low profitability" in Bitcoin mining is, it will be harder for the less-efficient miners to profit or to break-even. They will either need to turn off their mining farms or migrate to a region where they could mine using cheaper electricity.

humans seem to be willing to take alot of abuse and then more on top of that. just so they can make a few bucks. that's going to be miners oneday...   everyone is going to be shitting on them and they will be barely breaking even. what a wonderful world.

1. hobby miners dont move/migrate home just to be profitable.. when the underlying bitcoin costs raise and the market lowers to where the market is down at the value support testing the new bottom.. those unprofitable miners switch off mining or move mining over to a crapcoin temporarily.. and/or then become market buyers of btc because its cheaper to buy coin than buy electric to mine it

2. point(1) then ignites a market bull season, as proven by the previous halvings and ATH seasons..

[Crypt0Gore]

So bitcoin users want

1) low fees
2) high hashrate
3) lack of centralization

The Bitcoin users want two things.
1.Bitcoin price to the moon baby!
2.Low fees.
I don't think that most Bitcoin users care about hashrates or centralization. It's totally possible to have a way higher Bitcoin price and keep the transaction fees decent. The blockchain just has to be kept away from useless garbage like Ordinals, Runes and other "the next shiny thing" crypto projects. The hashrate can be adjusted when more BTC miners stop mining. Some BTC miners might have to switch to mining altcoins for several months. Nobody can guarantee the BTC miners big profits. Mining is a business like any other business and no profit is guaranteed.

There is a part that you are missing, do not forget that Bitcoin miners won't want low fees all the time, because higher fees equals to more profits for Bitcoin miners.

A high hashrate will be moderate because the higher the hashrate gets the lesser the profits that miners make, Bitcoin value has to keep increasing for mining to make sense, or some companies have to stop mining and the hashrate will go lower which means less difficulty for mining.

Centralisation or not people don't really care, if they do they won't use any centralised exchanges to trade Bitcoin, most Bitcoin investors are in for the long term profits, not because of Bitcoin decentralization, many people don't care about this.

In the first place, if truly people understand decentralisation they won't want to send their BItcoin into any exchange account, peer to peer trade, and decentralized exchanges are fitted for Bitcoin, not CEX, but who cares? 

[Wind_FURY]

That has nothing to do with how high or low fees are. Fees go up or down depending on network demand. But what actually more cost-efficient miners mean during the current period of "low profitability" in Bitcoin mining is, it will be harder for the less-efficient miners to profit or to break-even. They will either need to turn off their mining farms or migrate to a region where they could mine using cheaper electricity.

humans seem to be willing to take alot of abuse and then more on top of that. just so they can make a few bucks. that's going to be miners oneday...   everyone is going to be shitting on them and they will be barely breaking even. what a wonderful world.

1. hobby miners dont move/migrate home just to be profitable.. when the underlying bitcoin costs raise and the market lowers to where the market is down at the value support testing the new bottom.. those unprofitable miners switch off mining or move mining over to a crapcoin temporarily.. and/or then become market buyers of btc because its cheaper to buy coin than buy electric to mine it

Or because they're hobby miners, the incentives/profit are not their actual main motivators when the mine Bitcoin. They will probably continue mining at a loss, then wait until the price surges their operations back to profitability.

Plus some miners might be speculators too, including professional miners.

[dzungmobile]

Or because they're hobby miners, the incentives/profit are not their actual main motivators when the mine Bitcoin. They will probably continue mining at a loss, then wait until the price surges their operations back to profitability.

Plus some miners might be speculators too, including professional miners.

They can be hobby miners if they have already been in this Bitcoin mining industry long enough, get enough profit and have enough deep budget. I mean they are rich enough to mine bitcoins as their hobbies without any worry on what's happening now and next couple of months because they can spend bills from their deep pockets.

They don't mind facts are going on at the moment and near future, consider mining as hobby but eventually they get profit because after several months, market rally helps them to automatic harvest profit. Several months is only example, their waiting time for profit harvest can be different depends on different phases of market.

[franky1]

That has nothing to do with how high or low fees are. Fees go up or down depending on network demand. But what actually more cost-efficient miners mean during the current period of "low profitability" in Bitcoin mining is, it will be harder for the less-efficient miners to profit or to break-even. They will either need to turn off their mining farms or migrate to a region where they could mine using cheaper electricity.

humans seem to be willing to take alot of abuse and then more on top of that. just so they can make a few bucks. that's going to be miners oneday...   everyone is going to be shitting on them and they will be barely breaking even. what a wonderful world.

1. hobby miners dont move/migrate home just to be profitable.. when the underlying bitcoin costs raise and the market lowers to where the market is down at the value support testing the new bottom.. those unprofitable miners switch off mining or move mining over to a crapcoin temporarily.. and/or then become market buyers of btc because its cheaper to buy coin than buy electric to mine it

Or because they're hobby miners, the incentives/profit are not their actual main motivators when the mine Bitcoin. They will probably continue mining at a loss, then wait until the price surges their operations back to profitability.

Plus some miners might be speculators too, including professional miners.

to me hobby miners are not professional miners contracted into mining as a full time task. they just play around when the time is right. they are more likely to jump to crapcoins that are sha-PoW when times are bad for btc profit. and market buy btc when its cheaper to buy coin rather then pay electric at a loss
hobby miners dont do business plans of a 2 year budget, prepaid.. hobby miners are more short term dipping in and out when the time is right


right now there are people living in the pacific islands (japan/hawaii) where electric is upto $0.50/kwh meaning their mining costs is upto $290k/btc if they mined.. so they are not going to mine but will happily buy bitcoin at any price below their mining cost (todays price -> up) because buying from the market is cheaper then mining.. they wont just "mine at a loss" as that is just bad math, bad economics

look at the specific electric costs per state/region/country and then do some maths on electric cost + hardware cost(2year lifecycle) and calculate each state/region/countries mining costs per btc and you will soon see who is a guaranteed market buyer and which countries drop in and out of mining due to the volatility this year of $50k-$75k market and then what countries are doing industrial electric cost mining where they can continue mining even in the $50k range of cost
the numbers will surprise you and educate you more into the sway of sentiment between miners and market buyers

also when you do the calculations of each country you start to see the measure of the max mining costs on the planet, where even the most expensive mining can mine if the price went high enough and would then cause even those market buyers to stop being market buyers where by all the buys would dry up and set the next ATH premium because everyone would then profit more if they mined so the sentiment switches

enjoy doing some math

[Wind_FURY]

That has nothing to do with how high or low fees are. Fees go up or down depending on network demand. But what actually more cost-efficient miners mean during the current period of "low profitability" in Bitcoin mining is, it will be harder for the less-efficient miners to profit or to break-even. They will either need to turn off their mining farms or migrate to a region where they could mine using cheaper electricity.

humans seem to be willing to take alot of abuse and then more on top of that. just so they can make a few bucks. that's going to be miners oneday...   everyone is going to be shitting on them and they will be barely breaking even. what a wonderful world.

1. hobby miners dont move/migrate home just to be profitable.. when the underlying bitcoin costs raise and the market lowers to where the market is down at the value support testing the new bottom.. those unprofitable miners switch off mining or move mining over to a crapcoin temporarily.. and/or then become market buyers of btc because its cheaper to buy coin than buy electric to mine it

Or because they're hobby miners, the incentives/profit are not their actual main motivators when the mine Bitcoin. They will probably continue mining at a loss, then wait until the price surges their operations back to profitability.

Plus some miners might be speculators too, including professional miners.

to me hobby miners are not professional miners contracted into mining as a full time task. they just play around when the time is right. they are more likely to jump to crapcoins that are sha-PoW when times are bad for btc profit. and market buy btc when its cheaper to buy coin rather then pay electric at a loss
hobby miners dont do business plans of a 2 year budget, prepaid.. hobby miners are more short term dipping in and out when the time is right


right now there are people living in the pacific islands (japan/hawaii) where electric is upto $0.50/kwh meaning their mining costs is upto $290k/btc if they mined.. so they are not going to mine but will happily buy bitcoin at any price below their mining cost (todays price -> up) because buying from the market is cheaper then mining.. they wont just "mine at a loss" as that is just bad math, bad economics

look at the specific electric costs per state/region/country and then do some maths on electric cost + hardware cost(2year lifecycle) and calculate each state/region/countries mining costs per btc and you will soon see who is a guaranteed market buyer and which countries drop in and out of mining due to the volatility this year of $50k-$75k market and then what countries are doing industrial electric cost mining where they can continue mining even in the $50k range of cost
the numbers will surprise you and educate you more into the sway of sentiment between miners and market buyers

also when you do the calculations of each country you start to see the measure of the max mining costs on the planet, where even the most expensive mining can mine if the price went high enough and would then cause even those market buyers to stop being market buyers where by all the buys would dry up and set the next ATH premium because everyone would then profit more if they mined so the sentiment switches

enjoy doing some math

Good point, ser. It would be good to have a website that shows which cryptocurrencies, that uses the SHA-256 hashing algorithm, are more profitable than Bitcoin at any moment and observe miner behavior in those coins compared to Bitcoin. Plus show those coins' prices denominated in Bitcoin.

It would probably in the mining cabal's utmost advantage if they establish a liquid market of SHA-256 coins that are trading against Bitcoin.

[larry_vw_1955]

right now there are people living in the pacific islands (japan/hawaii) where electric is upto $0.50/kwh

if that's the case have they ever heard of solar power? maybe they need to invest in some solar panels on their roof i am sure it will be very much worth it. they'll be saving a huge amount of money.

you live in hawaii and you have strong sunlight all day long and yet you don't even realize that it is the solution to your high power costs. strange.

[franky1]

right now there are people living in the pacific islands (japan/hawaii) where electric is upto $0.50/kwh

if that's the case have they ever heard of solar power? maybe they need to invest in some solar panels on their roof i am sure it will be very much worth it. they'll be saving a huge amount of money.

you live in hawaii and you have strong sunlight all day long and yet you don't even realize that it is the solution to your high power costs. strange.

solar is great for normal household power utility.. especially if you plan to live there for many years to ROI the solar investment.. after all a few led room lightbulbs, a tv and a fridge freezer only uses say 1kwh so dont need many panels for basic minimalist living(candlelit nights)

but a asic is over 3kwh so need 9x1kwh panels to be a 1asic hobby miner (average EFFICIENT sunlight is 8 hours meaning 3x power draw to take in enough to use on demand and store for use later of the other 16 hours without good efficient sunlight).. then you look at the limited roof and backyard space to fit them.. and then look at the cost of panels and installation and delivery to remote islands, and suddenly the math shows that you are not going to ROI that panel investment in 2 years at todays bitcoin prices either

researching and mathing things out is great.. try it

[larry_vw_1955]

solar is great for normal household power utility.. especially if you plan to live there for many years to ROI the solar investment.. after all a few led room lightbulbs, a tv and a fridge freezer only uses say 1kwh so dont need many panels for basic minimalist living(candlelit nights)

but a asic is over 3kwh so need 9x1kwh panels to be a 1asic hobby miner (average EFFICIENT sunlight is 8 hours meaning 3x power draw to take in enough to use on demand and store for use later of the other 16 hours without good efficient sunlight).. then you look at the limited roof and backyard space to fit them.. and then look at the cost of panels and installation and delivery to remote islands, and suddenly the math shows that you are not going to ROI that panel investment in 2 years at todays bitcoin prices either

researching and mathing things out is great.. try it

i'm not sure its absolutely necessary to do the 3x power draw. just run your miner for 8 hours per day and that reduces the cost of your solar system and the size they take up. if you can't make money doing that then i doubt you can make any money by scaling that up. but you are right, hawaii is probably a better place to vacation or buy bitcoin than try and mine it. 

[franky1]

solar is great for normal household power utility.. especially if you plan to live there for many years to ROI the solar investment.. after all a few led room lightbulbs, a tv and a fridge freezer only uses say 1kwh so dont need many panels for basic minimalist living(candlelit nights)

but a asic is over 3kwh so need 9x1kwh panels to be a 1asic hobby miner (average EFFICIENT sunlight is 8 hours meaning 3x power draw to take in enough to use on demand and store for use later of the other 16 hours without good efficient sunlight).. then you look at the limited roof and backyard space to fit them.. and then look at the cost of panels and installation and delivery to remote islands, and suddenly the math shows that you are not going to ROI that panel investment in 2 years at todays bitcoin prices either

researching and mathing things out is great.. try it

i'm not sure its absolutely necessary to do the 3x power draw. just run your miner for 8 hours per day and that reduces the cost of your solar system and the size they take up. if you can't make money doing that then i doubt you can make any money by scaling that up. but you are right, hawaii is probably a better place to vacation or buy bitcoin than try and mine it.  

its not just electric.. its hardware cost too
if the 2 year ROI on asic hardware expectation is based on 24hour of sat acquiring.. reducing mining time by 3 means hardware ROI of the asic takes 3x longer because you are getting 3x less sats per day (if doing your 8 hour mining)
to recoup that expense

but now you see why some places like hawaii will just buy coin at any price even to the ATH premium

[EluguHcman]

People including myself are obsessed with money (earn as much as you can and spend as low as you can), so people will vote the number one.

Most people don't really care with high-low hashrate, centralization or decentralization because they always happy when government start accepting Bitcoin as legal tender, whales purchase Bitcoin in large sum, leaving their coins in CEX in order to not pay mining fees, staking in CEX rather than earn nothing etc.

At least even though I care with profit and loss, I don't mind to hold my coins in non custodial wallet.

True. I think when you struggle to accumulate those Bitcoins, funny enough that we can decide that hash rate has no more become new if implies the CEX with the government developments.

We just want to make the money while risk factors are undermined but literally can not not high fees just also as when we are laid on highily taxations by the CEX even while we have less income.

So number 1 is a most attractive but then, only legitimate Bitcoin earners would fans this factor because they fears no judge when transactions remains a public ledger even when assets is not practical under our full control.

However, while we anticipates on the governments accepting Bitcoin at all cost for wider values and utilizations, we definitely can not eliminate Centralization.

[Wind_FURY]

solar is great for normal household power utility.. especially if you plan to live there for many years to ROI the solar investment.. after all a few led room lightbulbs, a tv and a fridge freezer only uses say 1kwh so dont need many panels for basic minimalist living(candlelit nights)

but a asic is over 3kwh so need 9x1kwh panels to be a 1asic hobby miner (average EFFICIENT sunlight is 8 hours meaning 3x power draw to take in enough to use on demand and store for use later of the other 16 hours without good efficient sunlight).. then you look at the limited roof and backyard space to fit them.. and then look at the cost of panels and installation and delivery to remote islands, and suddenly the math shows that you are not going to ROI that panel investment in 2 years at todays bitcoin prices either

researching and mathing things out is great.. try it

i'm not sure its absolutely necessary to do the 3x power draw. just run your miner for 8 hours per day and that reduces the cost of your solar system and the size they take up. if you can't make money doing that then i doubt you can make any money by scaling that up. but you are right, hawaii is probably a better place to vacation or buy bitcoin than try and mine it.  

its not just electric.. its hardware cost too
if the 2 year ROI on asic hardware expectation is based on 24hour of sat acquiring.. reducing mining time by 3 means hardware ROI of the asic takes 3x longer because you are getting 3x less sats per day (if doing your 8 hour mining)
to recoup that expense

but now you see why some places like hawaii will just buy coin at any price even to the ATH premium

Plus there's mining hardware depreciation and obsolescence. Turning off and limiting your miners to mere eight hours a day loses its opportunity to breakeven on the hardware cost which must be done as quickly as possible. In this industry, cheap electricity is the biggest requirement to succeed. No access to cheap electricity means losing against the other more efficient miners who do have access. It would absolutely be more profitable to buy the DIP, and HODL with the capital and relax by being a passive investor.