[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 14 KB, 426x240, death-spiral.jpg [View same] [iqdb] [saucenao] [google]
19023601 No.19023601 [Reply] [Original]

> Bitcoiner since 2012
BTC just entered the 6.25 block reward epoch and the reduced profitability started its death spiral.
Half the block reward means half the profitability. This means the less efficient miners leave the network as they can no longer compete. Total amount of hash power drops and because the difficulty remains the same the time between each block increases. So far it looks like about 40 minutes per block, possibly longer, this is 4 times as long as usual making profitability drop even further. BTC profitability is now 1/8th what it was in the previous block epoch.
BTC was half way through its 2016 block difficulty adjustment cycle leaving about 1008 blocks to go before difficulty adjust to match the reduced block reward. So in a best case scenario if all the current miners stay on board and hash power doesn't reduce further, it'll take at least 28 days before the difficulty adjusts to increase the profitability from where it is now.
The slower block times also mean reduced transaction capacity and increased fees. Eventually the mempool will be so full of transactions that nodes will start to fail.

>> No.19023660

>>19023601
> Bitcoiner since 2012
BTC just entered the 6.25 block reward epoch and the reduced profitability started its death spiral.
Half the block reward means half the profitability. This means the less efficient miners leave the network as they can no longer compete. Total amount of hash power drops and because the difficulty remains the same the time between each block increases. So far it looks like about 40 minutes per block, possibly longer, this is 4 times as long as usual making profitability drop even further. BTC profitability is now 1/8th what it was in the previous block epoch.
BTC was half way through its 2016 block difficulty adjustment cycle leaving about 1008 blocks to go before difficulty adjust to match the reduced block reward. So in a best case scenario if all the current miners stay on board and hash power doesn't reduce further, it'll take at least 28 days before the difficulty adjusts to increase the profitability from where it is now.
The slower block times also mean reduced transaction capacity and increased fees. Eventually the mempool will be so full of transactions that nodes will start to fail.

>> No.19023750
File: 71 KB, 640x585, Hex_choose_wisely.jpg [View same] [iqdb] [saucenao] [google]
19023750

>>19023601

Well time to just go to HEX

No worries there.

>> No.19023771

>>19023601
nice larp nigger

>> No.19023795

>>19023601
This, except, the exact opposite.

>> No.19023842

>>19023601

Literally heard people call death spirals non stop for years and they never happen.

The hash rate went up past few days due to lots of new farms turning on looking to scoop up marketshare.

Also, lots of new equipment and antminers are being shipped and some already arriving, increasing efficiency. it's no coincidence. these farms are waiting for the unfeasible miners to switch off before switching on there new shiny farms.

companies like bitmain have been predicting this day for years.

>> No.19024016
File: 60 KB, 1150x1084, 1588151841642.jpg [View same] [iqdb] [saucenao] [google]
19024016

>>19023601
pls KYS thanks
https://coinjournal.net/debunking-the-bitcoin-death-spiral-theory/

>> No.19024049

>>19023842
Makes more sense to turn your more efficient miners on as soon as possible to drive out the less efficient competition and leave more market share for yourself.
New miners also don't bring the efficiency gains that they used to because they've hit the fabrication size limitation. You need a greater volume of miners than before to push up the difficulty.

>> No.19024155

>OP HERE
>BSV is the real bitcoin
KYS faggot

>> No.19024224

>>19024155
Silly bitch, go read a white paper.

>> No.19024265

>>19024155
This.
>muh whitepaper
>muh Craig

>> No.19024502
File: 280 KB, 980x742, 1499308671847.png [View same] [iqdb] [saucenao] [google]
19024502

>>19024224
seethe