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 ?