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What is the impact of the large price fall on mining?

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We all know what is going on in the market today at a great price drop, especially bitcoin.
I want to know what effect this huge price drop has on mining.
We know that mining costs are large, through the costs of buying expensive mining equipment, electricity, maintenance, fees, taxes, and other things that cause high mining costs.
When the price of bitcoin or other mining currencies is high, it is not a problem, because the return from mining covers these costs and gives you a good profit.
In the event that prices drop significantly, it is likely that these returns from mining are no longer sufficient to cover mining costs.
So will the miners stop mining? Or will they continue?
Does the current bitcoin price cover mining costs or is it losing?
Share your opinion, please.

 

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At the time, and with the price declining sharply, mining should be at a huge level in order to achieve profits. Mining by small and weak equipment is currently ineffective and its profits are very low.


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2 minutes ago, Jackymuse said:

I think, for now there are a lot of smaller mining operations now, so that it is no longer profitable with the price of bitcoin like that and not the right bitcoin but even with mining alt coins mining will work hard to get any profit. I am worried that they will continue to mine without regard to future risks.

As you said,  there are a lot of mining operations, but in my opinion sometimes they are not profitable for long term. It is so hard to work in mining BTC, for that you need a lot of things. 

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Over the years, the mining industry grew substantially across the globe, investing in exploration activities, acquiring new concessions and opening new mines along with the boom in commodity prices. If jobs cuts are inevitable, mining companies should provide training support and assistance for their outgoing workers to find new jobs and help relocate them and their families.Plus local businesses and entrepreneurs servicing and supplying the mines will suffer from loss of business following mine closures.which saw a drastic drop in economic activity including the closure of mines and a sharp reduction in CO₂ emissions.

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18 hours ago, rezzougali1985 said:

For me for example i remark a big difference in my daily income in my rig (contain 3 GPU NVIDIA 8 GO), when the price of bitcoin decrease so this is logical i think, and there is other condition witch effect in the rent-ability of mining like the difficulty witch is rising up every day.

Yes, this is what I was talking about, if the number of miners decreases and some of them leave the mining as a result of the significant price drop that will affect the mining and you will notice the difficulty of mining due to the decrease in the miners.

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Miners stop selling when prices go bellow production costs. They basically wait for market to react and rebalance to profitability. Right now we've seen that hashrate dropped as well, meaning that some have stopped their miners from running, or switched to another chain. This can have implications in the short term. Today we notice price rising but this might change in a few hours. Trading is difficult today and I won't suggest to be extremely bullish. 

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On 3/18/2020 at 3:32 AM, Crypto123 said:

We all know what is going on in the market today at a great price drop, especially bitcoin.
I want to know what effect this huge price drop has on mining.
We know that mining costs are large, through the costs of buying expensive mining equipment, electricity, maintenance, fees, taxes, and other things that cause high mining costs.
When the price of bitcoin or other mining currencies is high, it is not a problem, because the return from mining covers these costs and gives you a good profit.
In the event that prices drop significantly, it is likely that these returns from mining are no longer sufficient to cover mining costs.
So will the miners stop mining? Or will they continue?
Does the current bitcoin price cover mining costs or is it losing?
Share your opinion, please.

 

it depends from miner to miner, because some of them are profitable even with a low btc price and some of them not. but in general they stop if the mining is not profitable for too many days, because if they keep their mining rings running then, they are just losing money and there is no sense to keep mining.

 

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8 hours ago, BTC Future said:

Miners stop selling when prices go bellow production costs. They basically wait for market to react and rebalance to profitability. Right now we've seen that hashrate dropped as well, meaning that some have stopped their miners from running, or switched to another chain. This can have implications in the short term. Today we notice price rising but this might change in a few hours. Trading is difficult today and I won't suggest to be extremely bullish. 

This has already happened and we have seen a decrease in Bitcoin mining hashrate , probably a number of miners have now left Bitcoin mining or have moved on to other more profitable coin. But as you say, my dear, I think that this will not last long, because bitcoin quickly recovers and rises again, and then the miners go back to work again.

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I think the present should not exploit. I don't think it's profitable. At least from my country, I can see that. Its profit is pretty bad, I invested a lot in the tool but the electricity cost was too great. I do not see interest. sharply lower mining prices is also difficult.

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19 hours ago, jacker said:

I think the present should not exploit. I don't think it's profitable. At least from my country, I can see that. Its profit is pretty bad, I invested a lot in the tool but the electricity cost was too great. I do not see interest. sharply lower mining prices is also difficult.

Yes, lowering prices is very difficult for miners, because the cost of electricity and maintenance is high and therefore profits will be non-existent or few, either to stop or continue and store until the prices rise again.

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On 3/19/2020 at 6:59 PM, Rickso said:

it depends from miner to miner, because some of them are profitable even with a low btc price and some of them not. but in general they stop if the mining is not profitable for too many days, because if they keep their mining rings running then, they are just losing money and there is no sense to keep mining.

 

We pay electricity bill monthly, not daily so we can wait for weeks. Another important point well known by miner is: hodl is the key!


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I think the miners have to continue their operations because if they leave mining, there is no one to confirm transactions and if this happens, the outcomes will be much worse than the current crisis because blockchain will stop working and when no new block adds to the network, bitcoin will fall severely and miners will lose bigger. Anyone who starts mining, knows well that sometimes values will drop and they have to cope with losses temporarily. Therefore, to continue mining is less harmful for miners than to stop the process. This situation is not new for miners and they have passed even more difficult conditions in the past.

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8 hours ago, Brushless4500KV said:

I think the miners have to continue their operations because if they leave mining, there is no one to confirm transactions and if this happens, the outcomes will be much worse than the current crisis because blockchain will stop working and when no new block adds to the network, bitcoin will fall severely and miners will lose bigger. Anyone who starts mining, knows well that sometimes values will drop and they have to cope with losses temporarily. Therefore, to continue mining is less harmful for miners than to stop the process. This situation is not new for miners and they have passed even more difficult conditions in the past.

Yes, I think that miners should continue their work despite the difficult circumstances, otherwise the results will be very bad on the bitcoin network, but you cannot predict the behavior of all people, some people may panic from the current situation and leave the bitcoin mining and go to mining other currencies more profitable.

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As bitcoin price is increasing, miners reword is constant on bitcoin nut the value of bitcoin to dollar is increasing. So, if the miners convert to dollar, they have already gained more too. 

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19 hours ago, GanDuba said:

The large price fall really affected mining. Miners now are rewarded half of their original reward if compared to stable cryptocurrencies  and fiat. 

I don't mean, my dear, the decrease in Bitcoin mining rewards that will decrease when Halving Bitcoin occurs, but I mean the current price drop in Bitcoin prices and the rest of the currencies. This decrease if it continues will be a problem because the bitcoin bonus will be lower than the mining cost and thus miners may leave the mining.

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11 hours ago, jack0 said:

its very simple, the reward will decrease more, and due to the difficulty increasing day by day the rewards will reduce more.

Let me correct you a little, my dear, the difficulty is not the reason for the decline in mining rewards, but Halving is the one that leads to lower mining rewards, however we are here talking about the impact of falling prices on mining and not the difficulty of mining and rewards. Thank you.

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30 minutes ago, jack0 said:

i think corona virus impact too much to the crypto market. many thousand traders has been died. many big investors died from them.

Yes, I believe that the Corona virus has a huge impact not only on the crypto market but also on the global economy, the reason is not only the death of merchants but the state of terror and quarantine that most countries impose on citizens.

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If they price of cryptocurrencies fall, if miners are gaining $500 in a week and the price fall from $400 to $200. That means miners will only gain $250 instead of $500 in a week. 

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On 4/1/2020 at 11:08 AM, BitcryptoHan said:

If they price of cryptocurrencies fall, if miners are gaining $500 in a week and the price fall from $400 to $200. That means miners will only gain $250 instead of $500 in a week. 

Yes, the income of miners will decrease significantly, which causes them not to cover mining expenses. This may cause a large number of them to be left for mining and this can affect the network badly. I hope this does not happen.

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falling of Bitcoin price is directly impact on the miners because they are not able to make their profit and also not able to cover the mining expenses.but in this moment too many miners and traders know how to recover their loosing fund

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21 hours ago, Shahud said:

falling of Bitcoin price is directly impact on the miners because they are not able to make their profit and also not able to cover the mining expenses.but in this moment too many miners and traders know how to recover their loosing fund

Yes, due to the significant decrease in prices, this has directly affected the miners and they are no longer able to cover mining expenses. I have seen some statistics about the decrease of mining signs for bitcoin, and this indicates that some workers left for mining other currencies.

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21 hours ago, Thaaer said:

With the decrease in the price, profits will go downhill, especially for those who rely on working with limited and limited investments. Therefore, the scope of work must be expanded to reduce losses.

Profits will definitely decrease from mining as a result of falling prices and this may make many of them stop or try to migrate to mining another profitable currency more than Bitcoin mining, this may have a major impact on the network.

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On 30.03.2020 at 19:19, jack0 said:

its very simple, the reward will decrease more, and due to the difficulty increasing day by day the rewards will reduce more.

Mining with small capacities is no longer profitable and to be profitable you need a lot of equipment and, accordingly, a lot of money to buy. If of course the price of coins does not increase 100 times in this case, mining for ordinary users will again be profitable. But this growth is unlikely to happen.

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I don't much experience on this one but in my opinion I think  the fall in prices of cryptos really affects the miners out there because they will also make losses.

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12 hours ago, George10 said:

I don't much experience on this one but in my opinion I think  the fall in prices of cryptos really affects the miners out there because they will also make losses.

Well that I will tell you, mining costs are very large and lower prices will lead to mining profits not covering expenses and therefore miners will either have to leave and mining a more profitable bitcoin currency or wait until bitcoin price rises again.

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