Low space for new Miner?

Recent studies have shown that without a stronger Bitcoin price increase is very little space for new Miner. In the paper “Minting Money With megawatts” of Sveinn Valfells (Flux Ltd.) and Jón Helgi Egilsson (University of Iceland) both a broad analysis through transaction processing on the Public Block Chain. They conclude that the network is moving increasingly to a consolidation and centralization towards.

The aim of the study was to determine to what extent the profitability of Bitcoin Mining has developed after Halving in July. Finally, the change resulted in the network means that the reward per block of 25 to 12.5 BTC BTC has halved. According to the study results, it is to begin for new Miner only worthwhile with the mining, if the price is about 600 US dollars is. They came to the value by having investigated from when a new mining operation can generate profits.

One problem is that with the addition of new Hashrate it new profits is more difficult to generate. Accordingly, the two have studied how much Hashrate can be supplied to the network sustainable. They came to the conclusion that a maximum of 16% can be added to Hashleistung before an increase in the difficulty level would make the operation unprofitable. This comes as worrying as the narrow level of profitability long-established Miner not as endangered as new Miner. The authors explain that the established miners have already taken their capital investments to operate Mining. Consequently, those who, with a reduction of income only a problem if the operating costs are higher than the income by the mining.

Unlike established miners new miner must pay attention not only its operating costs, but also to cover the hardware cost. This advantage allows established miners to work at a lower marginal cost than is the case with mining new investments.

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