Money Talk
Is mining dead?
Submitted by NetDiablo, 09-10-2018, 07:11 PM, Thread ID: 103215
Thread Closed
RE: Is mining dead?
It is not dead yet but it will be soon for Bitcoin. Too much Miner, Few Bitcoins left for mining.
Notably, the recent market sell-off has hurt miners even more than ordinary investors. BitMEX Research estimates that cumulative bitcoin mining revenue has declined to $6 million per day at the start of December from $13 million at the start of November, outpacing the bitcoin prices already-steep decline.
In the six-day period ending 3rd December, 21.8% fewer blocks than the expected 144 per day were found, as miners left the network before the difficulty adjusted, and as a result, fewer blocks were found. Therefore in the short term, there was a 21.8% fall in mining incentives on top of the impact of the declining price.
According to some analysts, this likely means that Bitcoin has entered the outer ring of a ?death spiral, wherein it endures a vicious cycle of miners turning off their machines before the difficulty can adjust lower, preventing the network from processing blocks at regular, 10-minute intervals and further prolonging the interval between difficulty adjustments.
Part of the reason thats unlikely to happen is that miners have a much more long-term perspective, meaning that they have existing investments in equipment and they usually purchase electricity on long-term plans, they dont pay it by the week, he said. ?And therefore, if they have to wait to become profitable another three months and they have the equipment in place, theyre not turning it off.
Consequently, the mining industrys current struggles shouldnt have any long-term impact on Bitcoin itself, though that doesnt make things any easier for the individual cryptocurrency mining firms that must navigate this increasingly rocky landscape.
09-10-2018, 07:11 PMNetDiablo Wrote: So market is down and it's very hard to earn crypto while mining. What is your opinion about crypto mining.
Notably, the recent market sell-off has hurt miners even more than ordinary investors. BitMEX Research estimates that cumulative bitcoin mining revenue has declined to $6 million per day at the start of December from $13 million at the start of November, outpacing the bitcoin prices already-steep decline.
In the six-day period ending 3rd December, 21.8% fewer blocks than the expected 144 per day were found, as miners left the network before the difficulty adjusted, and as a result, fewer blocks were found. Therefore in the short term, there was a 21.8% fall in mining incentives on top of the impact of the declining price.
According to some analysts, this likely means that Bitcoin has entered the outer ring of a ?death spiral, wherein it endures a vicious cycle of miners turning off their machines before the difficulty can adjust lower, preventing the network from processing blocks at regular, 10-minute intervals and further prolonging the interval between difficulty adjustments.
01-12-2018, 01:27 AMwarezdon Wrote: Day Trading might be a better option than mining .....
Part of the reason thats unlikely to happen is that miners have a much more long-term perspective, meaning that they have existing investments in equipment and they usually purchase electricity on long-term plans, they dont pay it by the week, he said. ?And therefore, if they have to wait to become profitable another three months and they have the equipment in place, theyre not turning it off.
12-12-2018, 03:38 AMdebordus Wrote: It is not dead yet but it will be soon for Bitcoin. Too much Miner, Few Bitcoins left for mining.
Notably, the recent market sell-off has hurt miners even more than ordinary investors. BitMEX Research estimates that cumulative bitcoin mining revenue has declined to $6 million per day at the start of December from $13 million at the start of November, outpacing the bitcoin prices already-steep decline.
In the six-day period ending 3rd December, 21.8% fewer blocks than the expected 144 per day were found, as miners left the network before the difficulty adjusted, and as a result, fewer blocks were found. Therefore in the short term, there was a 21.8% fall in mining incentives on top of the impact of the declining price.
According to some analysts, this likely means that Bitcoin has entered the outer ring of a ?death spiral, wherein it endures a vicious cycle of miners turning off their machines before the difficulty can adjust lower, preventing the network from processing blocks at regular, 10-minute intervals and further prolonging the interval between difficulty adjustments.
Part of the reason thats unlikely to happen is that miners have a much more long-term perspective, meaning that they have existing investments in equipment and they usually purchase electricity on long-term plans, they dont pay it by the week, he said. ?And therefore, if they have to wait to become profitable another three months and they have the equipment in place, theyre not turning it off.
Consequently, the mining industrys current struggles shouldnt have any long-term impact on Bitcoin itself, though that doesnt make things any easier for the individual cryptocurrency mining firms that must navigate this increasingly rocky landscape.
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