I think that most people do not understand the danger.
What will happen is that a lot of miners will stop mining and will move to another more profitable coin.
These will also sell their Bitcoins.
There is a threshold that will trigger this phenomenon.
If you take Bytecoin for example, arriving to the last Bytecoin and moving to mining rewards only from the transactions killed the coin. Now they are trying to reset with an ERC-20 version, because the blockchain is dead.
Bitcoin was modeled from Gold, and I think that (respect to the boss) Satoshi made a miscalculation about Bitcoin, not knowing that many crypto will be created and will compete.
Gold does not have competition popping up every day. Bitcoin has.
So I think that at one point, Bitcoin will be slashed down and will lose a lot of value as well as its 1st place in the crypto world just because of the halving.
Also limited supply is not a good idea. What would be the cost of Gold if one day the supply was 0. People would probably panic and decide that another metal needs to replace it. Because people need more gold. If it is not possible then the role of gold could be jeopardized and gold would be replaced by something else.
Same will happen to Bitcoin.
Topic: Halved Bitcoin block reward - Danger to bitcoin? (Read 307 times)
At least most of us know that bitcoin's block reward is going to be halved next year on 23 May.
[snip]
The most crucial point to be noted here is what will happen after the reward of a block is reduced to a point where it's not even possible to make a profit.... forget profit what will happen if you're not even getting enough bitcoin to pay for electricity and hardware,
[snip]
The most crucial point to be noted here is what will happen after the reward of a block is reduced to a point where it's not even possible to make a profit.... forget profit what will happen if you're not even getting enough bitcoin to pay for electricity and hardware,
welcome. welcome to bitcoin. it doesn't care if you've learned about it yet
Very, very similar threads popped up around the last halving. If you showed the posters back then the current hash rate their knickers would fly off in pure flabbergastment.
Mining will ALWAYS be profitable for someone. That's how it was designed from minute one and that's how it's stayed and will stay. The arbiter of that will be the market and nothing but as it always has been.
Mining will ALWAYS be profitable for someone. That's how it was designed from minute one and that's how it's stayed and will stay. The arbiter of that will be the market and nothing but as it always has been.
By the time the reward is halved, Bitcoin will be worth more than twice its current value, so in fiat terms
That doesn't make any sense...It does to me but it's more of an assumption (hope) which likely from past history can be said to be achievable. Irrespective of what the block rewards are a major contributor to the profitablity of mining is the value of the bitcoin reward recieved so if the current block rewards BTC12.5 has a value of approximately $137,500 (price per bitcoin tagged at $11,000) then after the halving event which resulted to block reward getting reduced to BTC6.25 and bitcoin price rasing to between $22,000 - $25,000 it means mining would still be profitable considering every other factors like cost of electricity etc remain unchanged or doesn't increase that much.
It's not good to assume only good part of happening something, that's just naive. It's more like counting chickens before they've hatched.
That's just my point of view.
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By the time the reward is halved, Bitcoin will be worth more than twice its current value, so in fiat terms
That doesn't make any sense...It does to me but it's more of an assumption (hope) which likely from past history can be said to be achievable. Irrespective of what the block rewards are a major contributor to the profitablity of mining is the value of the bitcoin reward recieved so if the current block rewards BTC12.5 has a value of approximately $137,500 (price per bitcoin tagged at $11,000) then after the halving event which resulted to block reward getting reduced to BTC6.25 and bitcoin price rasing to between $22,000 - $25,000 it means mining would still be profitable considering every other factors like cost of electricity etc remain unchanged or doesn't increase that much.
BeeCash had to utilize a special Difficulty Adjustment Algo so it didn't die out of the gate. This led to blocks being mined at a furious rate hence BeeCash will have its reward halving well before Bitcoin. lol BeeCash boost.
I don't think bitcoin's algo can be changed anymore in its present blockchain but that difficulty adjustment was a smart move by BeeCash.
Because of the difficulty algorithm, it will always be profitable for someone to mine. Also, as the subsidy is reduced to 0, the security will depend more and more on transaction fees.
Yes exactly, It will be very hard for normal people to use bitcoin in future and there are reasons for that.
*As you said subsidy is reduced to 0 so miners will prefer transactions with more miner fee and neglecting transactions with low fee.
*Price of bitcoin will not be stable all the time or on the moon "let's face it" so block reward will not be profitable every time and there will be more miners because why not?
it's seen as easy money and noobs will join without realizing and understanding what they're getting themselves into.
- There will be ads promoting ASIC miners with somewhat slogan "#1 & Best energy efficient miner in the world" but 99% of them will turn out to be scams.
The idea behind the blockchain subsidy is to convince miners to support the network at the early stages of Bitcoin's history. If all goes according to design, supply and demand though transaction fees should satiate miners to keep the network going. We can't really tell for sure if its going to go that way, but fractions of a bitcoin that miners fight for in 2119 might have a greater exchange value than the 12.5 BTC they are after now. If it doesn't work out as required, the great economic enlightenment of 2076 might lead the way for a better model for Bitcoin to follow, so not too much to be concerned about now.
Yes it will be good but i believe it will end for bitcoins, only believers will be using bitcoins by that time.
And the reason for that is banks, They'll get their own crypto similar to Ripple or better, I'm sure they're not going to use Ripple there are various reasons for that but getting into them will lead this topic to off-topic.
I'm sure by that time gov will figure out a way to control cryptos if not now.
2076 transactions will be more miner's fee oriented and who knows if we are able to harness most of the power from nature then energy wouldn't be an issue.
But there will be better technologies for people to adopt than just bitcoin " Banks will pay more block reward for their blockchain compared to bitcoin people see the profit and leave mining bitcoin"
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By the time the reward is halved, Bitcoin will be worth more than twice its current value, so in fiat terms
That doesn't make any sense...
By the time the reward is halved, Bitcoin will be worth more than twice its current value, so in fiat terms, the halving won't make any difference.
The idea behind the blockchain subsidy is to convince miners to support the network at the early stages of Bitcoin's history. If all goes according to design, supply and demand though transaction fees should satiate miners to keep the network going. We can't really tell for sure if its going to go that way, but fractions of a bitcoin that miners fight for in 2119 might have a greater exchange value than the 12.5 BTC they are after now. If it doesn't work out as required, the great economic enlightenment of 2076 might lead the way for a better model for Bitcoin to follow, so not too much to be concerned about now.
The most crucial point to be noted here is what will happen after the reward of a block is reduced to a point where it's not even possible to make a profit.... forget profit what will happen if you're not even getting enough bitcoin to pay for electricity and hardware,
Because of the difficulty algorithm, it will always be profitable for someone to mine. Also, as the subsidy is reduced to 0, the security will depend more and more on transaction fees.
At least most of us know that bitcoin's block reward is going to be halved next year on 23 May.
After which 12.5 BTC block reward will be converted to 6.25 reward every 10 minutes leading to 900 BTC/Day total block reward.
And will be halved again after 450 days to 3.125BTC/day
The most crucial point to be noted here is what will happen after the reward of a block is reduced to a point where it's not even possible to make a profit.... forget profit what will happen if you're not even getting enough bitcoin to pay for electricity and hardware,
For power yes you can get solar panels but for hardware. They get rusty and needs to be upgraded at some point or need maintenance, which requires money.
Then what will be the point of mining...?
This could lead to ordinary people quitting and Pools will be reduced or will die at some point.
And individual organisations will start to invest in mining hardware, giving them the leverage of over 50% mining hash rate, Which will initially kill what makes bitcoin.. bitcoin.
So this will lead to panic selling, and people will start adopting altcoins.
Or maybe switching to BCH. Again this will boost BCH significantly if you look at the long run.
After which 12.5 BTC block reward will be converted to 6.25 reward every 10 minutes leading to 900 BTC/Day total block reward.
And will be halved again after 450 days to 3.125BTC/day
The most crucial point to be noted here is what will happen after the reward of a block is reduced to a point where it's not even possible to make a profit.... forget profit what will happen if you're not even getting enough bitcoin to pay for electricity and hardware,
For power yes you can get solar panels but for hardware. They get rusty and needs to be upgraded at some point or need maintenance, which requires money.
Then what will be the point of mining...?
This could lead to ordinary people quitting and Pools will be reduced or will die at some point.
And individual organisations will start to invest in mining hardware, giving them the leverage of over 50% mining hash rate, Which will initially kill what makes bitcoin.. bitcoin.
So this will lead to panic selling, and people will start adopting altcoins.
Or maybe switching to BCH. Again this will boost BCH significantly if you look at the long run.
BeeCash had to utilize a special Difficulty Adjustment Algo so it didn't die out of the gate. This led to blocks being mined at a furious rate hence BeeCash will have its reward halving well before Bitcoin. lol BeeCash boost.
At least most of us know that bitcoin's block reward is going to be halved next year on 23 May.
After which 12.5 BTC block reward will be converted to 6.25 reward every 10 minutes leading to 900 BTC/Day total block reward.
And will be halved again after 450 days to 3.125BTC/day
The most crucial point to be noted here is what will happen after the reward of a block is reduced to a point where it's not even possible to make a profit.... forget profit what will happen if you're not even getting enough bitcoin to pay for electricity and hardware,
For power yes you can get solar panels but for hardware. They get rusty and needs to be upgraded at some point or need maintenance, which requires money.
Then what will be the point of mining...?
This could lead to ordinary people quitting and Pools will be reduced or will die at some point.
And individual organisations will start to invest in mining hardware, giving them the leverage of over 50% mining hash rate, Which will initially kill what makes bitcoin.. bitcoin.
So this will lead to panic selling, and people will start adopting altcoins.
Or maybe switching to BCH. Again this will boost BCH significantly if you look at the long run.
After which 12.5 BTC block reward will be converted to 6.25 reward every 10 minutes leading to 900 BTC/Day total block reward.
And will be halved again after 450 days to 3.125BTC/day
The most crucial point to be noted here is what will happen after the reward of a block is reduced to a point where it's not even possible to make a profit.... forget profit what will happen if you're not even getting enough bitcoin to pay for electricity and hardware,
For power yes you can get solar panels but for hardware. They get rusty and needs to be upgraded at some point or need maintenance, which requires money.
Then what will be the point of mining...?
This could lead to ordinary people quitting and Pools will be reduced or will die at some point.
And individual organisations will start to invest in mining hardware, giving them the leverage of over 50% mining hash rate, Which will initially kill what makes bitcoin.. bitcoin.
So this will lead to panic selling, and people will start adopting altcoins.
Or maybe switching to BCH. Again this will boost BCH significantly if you look at the long run.
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