How will Bitcoin miners adapt after the next halving?

[krishnaverma]

As block rewards are reduced, smaller miners could struggle to stay profitable. What strategies might miners use to survive — or even thrive — post-halving? Will it make really hard for them to continue after the next halving ?

[rat03gopoh]

Miners' real concern isn't adapting after the halving; the fact is, government geopolitical policies can put daily pressure on miners. And this also applies to enterprise-scale miners.

They aren't actually competing solely on hash power, but also on electricity cost efficiency at that time. Miners' alternative activities include finding regions with the cheapest electricity rates or upgrading their renewable energy technology. All of this isn't done just to welcome the reward halving.

[Oshosondy]

As block rewards are reduced, smaller miners could struggle to stay profitable. What strategies might miners use to survive — or even thrive — post-halving? Will it make really hard for them to continue after the next halving ?

If a miner does not see bitcoin mining as profitable again, he will stop mining. This will make the hash rate difficulty to be reduced and other miners can benefit from it.

We do not know what will happen in the future but I think the bitcoin transaction should be able to fully replace the block reward as the price of bitcoin continue to increase.

[krishnaverma]

Miners' real concern isn't adapting after the halving; the fact is, government geopolitical policies can put daily pressure on miners.

Which countries governments are making it difficult for miners at present ? Can it become a problem in US as well ?

[rat03gopoh]

Which countries governments are making it difficult for miners at present ?

The most notorious is China. You don't even get the chance to legally turn on your mining rig, even though some mining statistics show China still contributes ~14% of the total global hash rate.

Can it become a problem in US as well ?

Who knows, perhaps you'll find the answer by looking at the "mining hashrate map" to see whether the US is that difficult or if it's actually a mining paradise.

[aoluain]

As block rewards are reduced, smaller miners could struggle to stay profitable. What strategies might miners use to survive — or even thrive — post-halving? Will it make really hard for them to continue after the next halving ?

EXACTLY the same way they adapted after all the other halvings . . .

I think the last halving and the next are less of an impact on miners even though the rewards
are halved.

Imagine getting a BTC50 reward today and then tomorrow only getting BTC25, thats a massive
change in reward.

The current reward is BTC3.125 a cut of BTC1.5625 doesnt seem like much in Bitcoin terms,
obviously in FIAT terms its quite large.

I would imagine at this stage quite a few miners are not selling and maybe choosing to HODL
a percentage of their reward?

Miners' real concern isn't adapting after the halving; the fact is, government geopolitical policies can put daily pressure on miners.

Which countries governments are making it difficult for miners at present ? Can it become a problem in US as well ?

Not if they can benefit from the industry and receive a portion of TAX revenue

[Yaunfitda]

As block rewards are reduced, smaller miners could struggle to stay profitable. What strategies might miners use to survive — or even thrive — post-halving? Will it make really hard for them to continue after the next halving ?

I will just leave it here so that others might see how a solo miner in the last year or so successfully was able to find a block and it's like hitting a lottery.



https://www.webopedia.com/crypto/learn/most-successful-solo-bitcoin-miners/

So I don't think that there will be changes whether you are a solo miner or not. It's all business after all and if you are lucky then you can a block by yourself. And I will quote,

Independent miners still account for over 40% of blocks mined, showing that individual participation remains relevant even at current hashrate levels.

[Dunamisx]

As block rewards are reduced, smaller miners could struggle to stay profitable. What strategies might miners use to survive — or even thrive — post-halving? Will it make really hard for them to continue after the next halving ?

To be a miner is not that easy to do, while after each successful halving period, the reward got slashed by two of the previous one, but we shouldn't forget that the same Bitcoin market value never remains the same, as it increases over time, after then when all bitcoin had been mined completely, they will have to depend on the transaction fee, while before then, the increase in the market value covers for the reduced miners reward after each halving event.

[lixer]

Whatever they did with the previous halving. Some leave, some stay, some grow. It's clear that mining will always stay profitable, and I mean ALWAYS , in the sense that if you are not profiting, you will stop, some still do even if they do not profit, but they are profiting us, for security being better at bitcoin.

Many operations grew to a size that we could not think of back in the day, I remember mining bitcoin with my freckling laptop, now there are lands size of football stadiums that work with solar panels to mine bitcoin with thousands of machines. Those guys will just keep their bitcoin until the price goes up. That is also one of the reason why we see bull run after halving every single time because miners wait until it's profitable.

[Cryptoprincess101]

Miners will survive same way they have been surviving since the first halving. Remember that miners benefit from 2 block rewards namely: block subsidy and transaction fees. The only thing that will happen is that the number of miners may drastically reduce because some of them will become uninterested since the block rewards will be halved. Most miners have already made enough bitcoins since they started mining so they can still continue while adding the small rewards to their portfolio. The last block of bitcoin will be mined by 2140 so despite the halving of the block rewards in each cycle, miners will still mine. Besides, the rewards being halved do not really mean that it doesn't amount to a reasonable amount because as the halving are approaching that is how the price of bitcoin is also skyrocketing.

[rbynxx]

As block rewards are reduced, smaller miners could struggle to stay profitable. What strategies might miners use to survive — or even thrive — post-halving? Will it make really hard for them to continue after the next halving ?

Do these miners think they'll have profitable in the present or they're in it in the long term? I think we need to know most of these solo miners mindset before we say if they'll struggle next halving event. Of course they want for higher price of BTC to make up of what they do to keep on mining but I think they're stacking it and more like they have the mindset as a long term investors.

It will be difficult of course considering it will be cut in half once again and there's a level of competition for a block but over time if they'll just continue I guess it will be all worth it. They'll adapt because they're in it in the long term, at least that's what I speculate over these miners.

[Asiska02]

As block rewards are reduced, smaller miners could struggle to stay profitable. What strategies might miners use to survive — or even thrive — post-halving? Will it make really hard for them to continue after the next halving ?

After the next halving, it doesn’t mean that the block rewards will be gone, it will just be reduced. Miners that are not profitable would stop mining and they can’t continue wasting resources in what they cannot benefit from, that’s just it. But seeing even smaller miners still actively mining, it means they’re benefiting from the mining and won’t stop. For the block rewards that will be halved, that won’t make miners to feel trembled to sell or stop mining because they’ll only be rewarded more for holding on to bitcoin as they tend to increase to mark a new all time high after every halving has taken place. This makes miners still profitable even after block rewards have been reduced.

[Zaguru12]

To be a miner is not that easy to do, while after each successful halving period, the reward got slashed by two of the previous one, but we shouldn't forget that the same Bitcoin market value never remains the same, as it increases over time, after then when all bitcoin had been mined completely, they will have to depend on the transaction fee, while before then, the increase in the market value covers for the reduced miners reward after each halving event.

Yes the miners will have to be on incentives which are curved out of the transaction fees after the end of the mining, this has been the long standing dellima of whether this will be sufficient for the miners, this questions has have always answered will heavily depends on the amount at which bitcoin is trading then. If you look at the price now or even look at the bitcoin equivalent, it is actually hard to see that all fees of a particular block doesn’t sums up to say the current 3.125 bitcoin, so until there is some changes there will definitely be a gap between the numbers.

Some argues that maybe there will be less miners so the few miners now enjoy the fees alone and not share with them, but this is now actually bringing us back to the question of would that affects decentralization of the miners as the more miners the more decentralized the network.

[philipma1957]

miners need much higher price sooner than the next 1/2ing

we will see if btc gets near the price miners need.

Ie 150k for now is good

and 250k for next halving would be good.

Time will tell if that happens or we see a huge drop in hash power.

[JeffBrad12]

Like usual, market will adjust, scarcity increase, price increase, miners got profit from the appreciating of the value. Seeing the growth of bitcoin every halving, I'd say everything will be fine. The market always adjust anyway and we shouldn't worry about it.

[Dave1]

Like usual, market will adjust, scarcity increase, price increase, miners got profit from the appreciating of the value. Seeing the growth of bitcoin every halving, I'd say everything will be fine. The market always adjust anyway and we shouldn't worry about it.

Exactly, not just miners, but those who are supplying us with mining gears too as they will have to reinvent again and make a new and stronger machine as their is difficulty every halving event.

So they will adapt for sure and maybe they will sell some of their stash to be able to buy new mining rigs. But at the end of the day it's all about business, it's the return of investment that they are looking and so as Bitcoin became more scarce, their will be more demand and prices will go up in the future. It's the natural process of Bitcoin ecosystem that includes miners.

[ginsan]

Like usual, market will adjust, scarcity increase, price increase, miners got profit from the appreciating of the value. Seeing the growth of bitcoin every halving, I'd say everything will be fine. The market always adjust anyway and we shouldn't worry about it.

Theoretically it is true that more adoption will increase the price of bitcoin on the other hand bitcoin is also getting scarce after the Halving, so people will definitely take more before scarcity because of the halvig, but it must still be accompanied by strong demand in the market, otherwise bitcoin will not go anywhere in terms of price, because the most important wheel is demand.

The miner will receive a heavy burden because he has to have new equipment to solve the existing difficulties but, whether a miner is profitable or not must be seen from the BTC he gets and the price of his BTC then the operational costs that must be paid, well after that we will only see after taking into account later, the halving is still very long from today.

[Renampun]

It will be difficult for miners because their rewards are drastically reduced, but like a business, miners need to adapt to changing conditions to stay competitive, whether they increase the efficiency of their rig or they are looking for a cheaper source of electricity. and also with increasingly valuable Bitcoin prices, it will allow miners to remain profitable despite the reduced rewards, if the price of Bitcoin rises significantly, it can offset the lower block rewards, helping miners maintain or even increase their revenue, so it wouldn't be a problem for these miners if it was true that Bitcoin prices rose after the halving.

[JeffBrad12]

Like usual, market will adjust, scarcity increase, price increase, miners got profit from the appreciating of the value. Seeing the growth of bitcoin every halving, I'd say everything will be fine. The market always adjust anyway and we shouldn't worry about it.

Theoretically it is true that more adoption will increase the price of bitcoin on the other hand bitcoin is also getting scarce after the Halving, so people will definitely take more before scarcity because of the halvig, but it must still be accompanied by strong demand in the market, otherwise bitcoin will not go anywhere in terms of price, because the most important wheel is demand.

The miner will receive a heavy burden because he has to have new equipment to solve the existing difficulties but, whether a miner is profitable or not must be seen from the BTC he gets and the price of his BTC then the operational costs that must be paid, well after that we will only see after taking into account later, the halving is still very long from today.

Cyclical demand always there and it's already massive. The miners also doesn't need to renew their hardware every halving though.
We're talking about bitcoin's blockchain where difficulty adjust whenever hashrate going down, the miners can be using their current hardware and it will be fine.
Having upgrade means they want to increase their hashrate against competitor, at least that is what I know.

[krishnaverma]

It will be difficult for miners because their rewards are drastically reduced, but like a business, miners need to adapt to changing conditions to stay competitive, whether they increase the efficiency of their rig or they are looking for a cheaper source of electricity.

Cheaper electricity will not be possible in most cases. It should be other way around, they will have to pay for more costly electricity.