Why bitcoin mining reward is so high? Is it reasonable?

[Brushless4500KV 4214]

Some say bitcoin mining is still profitable and others say it is not but when I consider bitcoin block mining reward, I think it is higher than it should be. In the early stages of bitcoin the reward was 50 BTC and then gradually decreased to 25 and now it is 12.5 BTC. It is true that 12.5 BTC is much less than 50 BTC but now bitcoin price is much higher than early days (when bitcoin price was just a few cents) and today 12.5 BTC is worth more than 50 BTC in 2009 or 2010.

So, today miners earn 12.5 BTC per block reward. I think this reward is so high compared to their efforts and investments. 12.5 BTC is worth around $125.000 when bitcoin price reaches $10K. Is this not enough to compensate for mining tool costs and electricity? I think miner rewards should be lower than that. They are earning much more than what they spend. I may be wrong but do you think miners deserve this amount of profit?

 

[nicolas1234789 2566]

Mining is the expensive method to make income using crypto, you can see how the equipment price for built rig and mining that's so big. If miner get reward so high I think that is good because you get what you spend. I think mining is not profitable ( this time ) even you have big reward but the value is very low, you'll get nothing.

[Akshitmalik49 0]

mining reward is very big because patience power mining rate is low and when high rate sale the cryptocurrency

[lucky80 1046]

On 12/10/2019 at 7:02 PM, Brushless4500KV said:

So, today miners earn 12.5 BTC per block reward. I think this reward is so high compared to their efforts and investments. 12.5 BTC is worth around $125.000 when bitcoin price reaches $10K. Is this not enough to compensate for mining tool costs and electricity? I think miner rewards should be lower than that. They are earning much more than what they spend. I may be wrong but do you think miners deserve this amount of profit?

Crazy. If you have a massive power then you can have 12.5 BTC in solo mining. But the expenses from the electricity and hardware cost? Boom. It will take years to get back your money.

 

Let's use the mining calculator. 

We will use the latest Ant miner S17+ 73 TH/S, 2920 W, Price $1863. We will need approximate 645000 Th/s to solve a block per day. To achieve the hash rate, we use 8835 units of the miner with a total price of $ 16,459,605‬. The whole miner will consume 25,798,200‬ Watt. Let's say the electric cost is $ 0.1/Kwh.

 

And this is the result

 

 

And remember, the mining difficulty will rise, which will decrease your earning. 

[Crypto123 0]

Hello my dear friend, the issue cannot be seen in this way, you must first know the number of miners in the world until you know exactly how each one of them takes precisely from this amount that is 12.5BTC or 125,000$. First of all, you should know Hash Power each of them to know how much will get the bonus from the block.. If you go to Nice Hash you will find that the largest mining device currently gives you a profit of only about 11$ a day. I think this is not much at all due to the high price of the device and the electricity bill.

[bliznec 22267]

Of course, miners are not very effective when they take into account the hash rate of the bitcoin network. I think that after halving bitcoin, it will be even more difficult to mine bitcoin. It depends on who, what equipment. 

[kadayakito 765]

I think mining bitcoin with such a difficulty and the reward received is definitely worth it. I have never received a bitcoin reward. to mine bitcoins for a reward is a great perseverance. If calculating profit, the reward is quite good for the capital.

[jacker 1095]

The high bitcoin reward I think is well worth the time and effort mined. Bitcoin mining is not easy, not everyone can exploit and when certain success is high reward is perfect. Good rewards are only for those who deserve them.

[magd 5231]

Mining bonuses are now reduced and this process has become unprofitable in many countries of the world because of its inability to cover the costs of electricity and appliances, especially during the next half of this year the reduction will be much greater

[iloveyobit 6599]

I have not tried mining using special equipment, but I think the profit resulting from the bitcoin mining process is unfortunately steadily decreasing and this makes transfer fees high in return.

[OVIROY21 499]

The equipment in terms of power consumption per GH is 2.5 times better than last gen. So I guess in terms of mining, the price and difficulty would have to subtract up to that to make it not profitable. The price seems to be going up, so I think mining even at a lower scale will still be ok.

[guatazoo 7150]

Bitcoin mining rewards to be high is reasonable because of high cost of energy thats miners are using, and thats why currently in order to process your withdraw fast you must be paying high fees. 

[tienda 8776]

On 11/23/2020 at 12:31 PM, guatazoo said:

Bitcoin mining rewards to be high is reasonable because of high cost of energy thats miners are using, and thats why currently in order to process your withdraw fast you must be paying high fees. 

Dear friend @guatazoo I'm not sure the high cost of energy will be the reason or the cause of high mining rewards. Because the energy cost is different in many places, there are some countries where the energy cost is lowest in others countries is higher...etc. My opinion I think the reason is about the high cost machine price and maintenance and also difficulty of mining bitcoin so hard.