A way to secure Bitcoin, even if mining becomes unprofitable!

odolvlobo

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Quote from: Dude65535 on June 05, 2011, 10:27:01 AM

Mining will never be unprofitable for any significant length of time. It is a self correcting system. The potential problem is whether the level of mining that will be profitable will provide adequate security for the bitcoin network.

Edit: Also if it were necessary to do more mining that was profitable and one entity took on that task then you have centralized transaction processing and there is no point to having bitcoin.

More accurately, mining will never be unprofitable for some miners for any significant length of time.

franky1

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mining will never be an issue

1. when its too expensive to mine. people then buy coin instead of waste money on electric.
(this keeps prices relative to mining)

2. even if there was only 1 asic on the network. blocks will still be made.

3. pools dont just switch off instantly. they slowly power down, which then leaves the remaining miners getting a bigger slice of the cake now theres less participants. meaning more profit as its less diluted/shared out

mining is a non issue so dont worry. as long as bitcoin is useful people will mine

Findeton

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Quote from: Dude65535 on June 05, 2011, 10:27:01 AM

Edit: Also if it were necessary to do more mining that was profitable and one entity took on that task then you have centralized transaction processing and there is no point to having bitcoin.

That's so true!

Dude65535

full member

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Mining will never be unprofitable for any significant length of time. It is a self correcting system. The potential problem is whether the level of mining that will be profitable will provide adequate security for the bitcoin network.

Edit: Also if it were necessary to do more mining that was profitable and one entity took on that task then you have centralized transaction processing and there is no point to having bitcoin.

Dansker

hero member

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Merit: 500

Hello world!

Hello good sirs of the internets.

This post is reluctantly accepting as a premise of it's proposed solution, that the doomsday-sayers are right, and that mining may at some point become unprofitable.

What I suggest is, that a independent organisation is set up, with the sole purpose of mining BTC.

The organisation will be non-profit, and all proceeds that it creates from mining, it will use to keep itself running. In other words, it will be self-sustainable as far as possible.

This also means, that as long as mining is profitable, this organisation will hoard funds, since it will spend less that it will have as an income. These funds will then be used in the event that mining becomes unprofitable, where the organisation will then continue mining at a loss.

It will have to be started from donations ofcourse, and it's probably not very realistic or do now, but rather something that can be done along the way, if BTC starts becoming a serious world wide currency with billions of dollars of value in it.

The point of this post is simply to give an idea of how the problem, that may or may not exist down the road, can be handled.

Topic: A way to secure Bitcoin, even if mining becomes unprofitable! (Read 1315 times)