What will happen to Bitcoin mining on or about 7/30/2016 ??? That’s when it’s predicted the next “halfing” of the reward payout will occur. Currently the reward is 50 Bitcoins, however that will be cut in half to 25 Bitcoins on or about July 30, 2016.
It would seem that this reduction in reward will wreak havoc on the mining industry. Certainly electrical costs will not drop by 50%, and while more efficient miners may be available by reduction time, it’s doubtful the equipment will be 100% more efficient, or 50% less costly. So… can miners afford to have their income cut by 50% and still remain in the mining business ???
This impending reward reduction seems like the proverbial elephant in the room that nobody is talking about. The built-in reduction of the reward may have seemed like a good idea when Bitcoin was first conceived, but given the circumstances that have unfolded to date, perhaps all the unfavorable possibilities were not taken into account.
Again, I am very new in the Bitcoin and the Bitcoin mining world, but to me this reduction appears to be problematic. I can tell you that as of today, if my mining results were to be cut in half, I would be pulling the plug and likely using the mining equipment for reminiscing about the good-ole-days.
The only other possibility to offset this reduction would be, if new equipment were to be developed that mined for 1/2 the current costs. So, that means I would need to scrap my old equipment (which I just bought and have not recouped the cost yet) and buy the new equipment, which I suspect would be at least as costly as the equipment I have today.
What are your thoughts ??? Have you given any consideration to what you will do when the reduction occurs ? Is it possible the reduction would be significantly delayed, reduced, or cancelled altogether ?
Hello folks. I have been mining for only a short while now, but have come to the realization that Scrypt mining may be a losing proposition. I have one Scrypt miner, a Zeus Thunder X3, and in my area it uses about $2.45 in electricity a day. See the below graphic.
As can be seen, at the current price of LiteCoin, I’m losing about $1.18 a day. Maybe if the price of LiteCoin nearly doubles, I can make a pittance of profit, but until then… I’m pulling the plug.
My BitCoin miners are making money. Currently I have about 3.3 Mh/s combined hashing power. I have limited electrical power available (right now I have a dedicated 60-Amps available for the miners) and can use the circuit from the Scrypt miner to power another Sha 256 miner. That’s what I plan to do for now. I wish I had more power I could dedicate to the miners, but working from my home I need the remaining power for household devices.
What do YOU do ? How do you manage the power needs of your mining equipment, and if doing it from home like me, balance the needs of the mining equipment with household needs? Let me know via the comments function.
Also, what do you do about removing the heat generated from the units? Right now, it’s winter in the northeast and I heat the rec-room area with the discharge from the units. However in the summer I will want to discharge that heat out of the house. I’m thinking something similar to the concept of a dryer vent. I understand the discharge tube will need to be of larger diameter that that of a dryer vent, but the concept will be the same. Yes, I could open some windows, but during the summer I frequently run the air conditioner in that room.
Anyway… I’m still learning. Let’s share some ideas !
Well folks… the last couple of days the price of Bitcoin was circling the drain. It hit a bottom of about $150.00, but after falling that far, the bottom was anyone’s guess. It did rebound some, but not to the $300.00 range it had been holding steady at previously. Myself, just getting into the Bitcoin mining effort, the fall was a little disheartening to say the least. I do have confidence that in due time the price will recover to previous levels, and I am even a little optimistic the price will continue upward as crypto-currency grows with acceptance.
Let’s talk about acceptance for a second. Does anyone think crypto-currency will become widely accepted in the near future? By accepted I mean used as currency by the common consumer. By near future I mean within the next 1-3 years.
More and more merchants can be seen accepting crypto-currency (mainly Bitcoin) and this may lead to more awareness by consumers, but will that be enough for consumers to use it? WHY would they use it instead of cash or credit cards to make a purchase? There needs to be a reason to use crypto-currency over any other form of payment for goods and services. Why would someone stop at a crypto-currency ATM to exchange cash or credit for crypro-currency? Seems like an extra unnecessary step for no added benefit for simple everyday transactions.
Now those of us who mine for crypto-currency will likely be the early adopters of consuming with crypto-currency, but I imagine we are a very small percentage of the retail economy, and certainly not enough to effect a change in overall consumer habits.
Let me (and others) know your thoughts on this. Use the comment function to make your thoughts known.
Just getting this site cranked up. I am new to the crypto currency world. I just started mining for coins and hopefully we can get some dialog going about thoughts, suggestions, and comments.
More content will be added as it becomes available. Feel free to say hello, or contribute in some way to the education of others that may be just starting out. Your contribution, no matter how small, just may help someone who needs advice, help getting started, or has other questions.
Thank you !
cryptocoinjunkie at yahoo dot com