Mining Profitability - Is the halving of block rewards and Bitcoin price a problem?

Let's try to address some common cryptocurrency/blockchain questions in short and simple explanations.

So, in regards to mining profitability, there is a discussion whether the gradual reduction in block rewards and fluctuation of Bitcoin price are relevant. There is a common misconception here.

Even if the Bitcoin price drops or the reward halves:

The difficulty re-targeting algorithm creates a dynamic relationship between the miners and the issuing of blocks.

Thousand mining ASICs exist within farms. Let's say some of this equipment is not profitable now to continue mining due to low hashing power, electricity in certain regions, maintenance costs etc. at the current level of difficulty and price.

Less efficient/not profitable equipment can stop mining right? Turn them off. Keep only equipment which is profitable. This happens continuously around the world.

This will reduce the hash power of the network. This happens very often as you can see on this chart. The difficulty re-targeting will occur every two weeks and the miners still operating will become even more profitable, because the difficulty gets lower and the same hash power generates more Bitcoin.

Some of the equipment turned off would now be again profitable to operate. This equipment is turned on and therefore the hash rate increases again :)

Then, on the next difficulty re-targeting this equipment may again not be profitable and this cycle causes people to turn mining machines on and off all the time.

An identical pattern is followed when Bitcoin price fluctuates.