Can someone explain to me why cutting the rewards for bitcoin mining in HALF is a good thing ? I…
Can someone explain to me why cutting the rewards for bitcoin mining in HALF is a good thing ? I dont get it. Why would cutting the rewards for mining bitcoin be good for miners ? AND why wouldnt miners just switch to another crypto currency ?
if miners go away.. hashrate drops.. difficulty will adjust lower getting cheaper to mine and miners will come back.. just how the game theory works. besides there are many of us who will mine with gpu if asics miners go away so F…K the miners..
BTC mining requires sha256 operations. The hardware to mine most efficiently is specialised to this so the hardware is only transferable to another crypto if it also uses sha256 POW.
Theoretically it’s supply v demand. Values of tokens should rise. Not always it may take time. But yes miners change coins…
Stephen Mueller, the benefit is to holders of BTC as there is less BTC selling pressure from the halving of the inflation rate. BTC miners are always a downward pressure on BTC price, never an upwards pressure as they must also some something of what they mine to cover their electrical costs.
Don’t comment if you can’t answer the question. He is asking why won’t miners switch to another crpto if mining reward is more.
Martin Edward, this is Facebook. It’s bound to happen
If he had left the word “bit” out , It would have been answered perfectly
His question actually has three question marks in it, which you simplified to a single question. So it would appear that yours is the comment that is stupid 🙂
Obviously
For example only, let’s say 100% of miners: Most people who are mining bitcoin will get the portion of bitcoin from the pool and instantly sell it – some people live off mining money. I think the current reward for bitcoin block is 12btc. So, that is 12btc that is being created and sold every new block. This creates more bitcoin on the markets. By halving the rewards this creates less bitcoin to sell off, making it more of an asset and thus the price will rise. Basically it’s the opposite of inflation. Why won’t they switch to another coin? Well bitcoin is the best for money obv. Why work in a pool and make a few dollars when you can make a thousand?
Andrew MacLeod, ok, let’s say i am i miner and its no longer profitable to mine bitcoin i will stop and then the hashrate will drop and the other miners will mine it more easily no matter that the block will be half the size?
top , your logic is flawed. Bitcoin maintains its value because of the cost to mine it. So. Let’s say it costs 1k in electricity to mine. The value will never be less than the value people put in. If you’ve read the bitcoin manifesto you’ll know that after a certain amount it will be impossible to mine bitcoin. The maximum and total amount of bitcoins to ever exist will be: 21 million – at the point it was theorised that bitcoin will be economically sufficient to sustain itself. That isn’t a 100% fact so it could all crash and burn.. I guess we all just hope for a new world order and adoption
Andrew MacLeod, and the quantum computer to never be invented 😁
Opposite of getting inflated into oblivion like USD. Also this mechanism is known by all which makes it very predictable.
this price mechanism is built in, so as to appear the opposite of what happens to fractional reserve fiat. any cut in reward is imo made up for with the gradual increase in price.
more demand less supply increases prices, so less amount of bitcoins does not effect mining rewards, already happened twice in the history of bitcoin since its inception.
Miners do move, it happens everytime. They give up and sell equipment or mine something more profitable. The thing to keep in mind is when bitcoin crashes so do alts… so where are you going to move your asics to? This is why there’s usually a harsh crippling drop of 40% ish after a halving for capitulation, the mining difficulty drops drastically and people slowly creep back in and start the cycle over.
This mini video explain you what’s halving. https://twitter.com/grayscaleinvest/status/1252679099404955658?s=21
If alot of miners stop mining due to the halvening, the difficulty drops after maximum 2 weeks. Then its more profatable to mine again, and the miners who stopped mining, will turn it on again. That is why the difficulty go up and down all the time. Well, that and more effektive asics
I see alot of people I. the comments saying things that are totally wrong. This is definitely not the page to be on yo learn about crypto.
you have to illustrate it with crayons next time..
https://www.bitcoinsuisse.com/research/decrypt/block-reward-halvings-and-the-rational-miner good article regarding the topic
Mike ) ask this question during the Q&A session of our event https://facebook.com/events/s/online-bitcoin-brunch-halving-/547868579204205/?ti=icl You’ll get an answer and could win 100 usd
that’s what I’m missing here…less likely to solve a block so..