If the mining profits decrease, will Bitcoin end? - page 2.

clickerz

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Quote from: MMA on January 10, 2017, 11:21:15 AM

when there will be no bitcoin remain to mine then the price of bitcoin will increase much more. because the demand will increase and the supply will decrease, therefore i think people will offer more high price for buying bitcoin.

Well, that probably the possible scenario and also, I think sending charges will definite increase All is just a speculation but theres a posibility to happen.

Bitcoin is not threatened I think if mining profits decreased,but if another coin can addressed the some issues which bitcoin encounter like for eg in speed etc then its a game changer.

MMA

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Quote from: kiklo on January 10, 2017, 02:54:28 AM

Quote from: st0nefish on January 09, 2017, 07:45:23 AM

At the moment the miners for a block are awarded 12.5 BTC. Every 4 years this value will fall by half. For example, let's imagine that the prize value is 1.5 BTC for each block and that BTC's value against the dollar does not increase. In such a case, mining will not be very profitable.

At the same time, miners are also benefiting from the value of the fee. This time the fee values will increase. Then people will have to pay a high fee for bitcoin transfer. The biggest advantage of the Bitcoin system against banking systems was that they could shop without paying commissions to any brokerage house. If this happens, can bitcoin preference be reduced?

When there are ZERO rewards , the Fee Prices will be so high, people will move to other coins with cheaper fees and BTC will Die.

Cool

when there will be no bitcoin remain to mine then the price of bitcoin will increase much more. because the demand will increase and the supply will decrease, therefore i think people will offer more high price for buying bitcoin.

Xester

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There is no way that bitcoin will end with just a decrease in mining profit. It will continue but the confirmation will take a very long time. The users will pay huge fee just to get the transaction done in time. But let us say a miner will stop mining because it is no longer profitable what will happen next, a new miner with a good hardware will replace the old miner and the cycle will continue. New mining hardware, new technology will just come out to solve the problem on difficulty, electricity and others.

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Quote from: pinoycash on January 09, 2017, 07:47:34 AM

Quote from: st0nefish on January 09, 2017, 07:45:23 AM

At the moment the miners for a block are awarded 12.5 BTC. Every 4 years this value will fall by half. For example, let's imagine that the prize value is 1.5 BTC for each block and that BTC's value against the dollar does not increase. In such a case, mining will not be very profitable.

At the same time, miners are also benefiting from the value of the fee. This time the fee values will increase. Then people will have to pay a high fee for bitcoin transfer. The biggest advantage of the Bitcoin system against banking systems was that they could shop without paying commissions to any brokerage house. If this happens, can bitcoin preference be reduced?

No really, only the BTC reward will be lowered but the BTC price will increase due to the law of supply and demand, less BTC less supply more demand, high prices.

You are assuming that bitcoin will be the primnary cryptocurrency and that there will always be demand. But it's possible that as fees rise, people switch to another cryptocurrency and bitcoin collapses.

Nothing is guaranteed in this space.

Digitalbitcoin

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Quote from: st0nefish on January 09, 2017, 07:45:23 AM

At the moment the miners for a block are awarded 12.5 BTC. Every 4 years this value will fall by half. For example, let's imagine that the prize value is 1.5 BTC for each block and that BTC's value against the dollar does not increase. In such a case, mining will not be very profitable.

At the same time, miners are also benefiting from the value of the fee. This time the fee values will increase. Then people will have to pay a high fee for bitcoin transfer. The biggest advantage of the Bitcoin system against banking systems was that they could shop without paying commissions to any brokerage house. If this happens, can bitcoin preference be reduced?

Basically bit coin is made up with proper programming which have done with considering future requirement. Already many things were predicted about Bitcoin environment which are really sustainable as well as complementary. Bitcoin is really invention made up of this century.

And as already predicted price of Bitcoin in future can give good return on investment with mining of Bitcoin. Even halving if decrease price of block reward, Still price matter. Because increasing price of Bitcoin giving returns to miners. And in future if reward decreases as per prediction still miner will be profitable if they have high end mining hardwares.

kiklo

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Quote from: st0nefish on January 09, 2017, 07:45:23 AM

At the moment the miners for a block are awarded 12.5 BTC. Every 4 years this value will fall by half. For example, let's imagine that the prize value is 1.5 BTC for each block and that BTC's value against the dollar does not increase. In such a case, mining will not be very profitable.

At the same time, miners are also benefiting from the value of the fee. This time the fee values will increase. Then people will have to pay a high fee for bitcoin transfer. The biggest advantage of the Bitcoin system against banking systems was that they could shop without paying commissions to any brokerage house. If this happens, can bitcoin preference be reduced?

When there are ZERO rewards , the Fee Prices will be so high, people will move to other coins with cheaper fees and BTC will Die.

Cool

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Quote from: shorena on January 09, 2017, 08:09:09 AM

Quote from: st0nefish on January 09, 2017, 07:45:23 AM

At the same time, miners are also benefiting from the value of the fee. This time the fee values will increase. Then people will have to pay a high fee for bitcoin transfer. The biggest advantage of the Bitcoin system against banking systems was that they could shop without paying commissions to any brokerage house.

Bitcoins biggest advantage is that its trustless. Anyway the plan is that more transactions will be included per block thus the total reward from fees will increase without the need for the fee per transaction to increase (significantly).

That's why we need the blocksize increase. But are the fees depending on the miner's reward? I mean we pay someone for securing something for us. But it's also meaning the fees will increase with insignificantly.

cellard

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Quote from: st0nefish on January 09, 2017, 07:45:23 AM

At the moment the miners for a block are awarded 12.5 BTC. Every 4 years this value will fall by half. For example, let's imagine that the prize value is 1.5 BTC for each block and that BTC's value against the dollar does not increase. In such a case, mining will not be very profitable.

At the same time, miners are also benefiting from the value of the fee. This time the fee values will increase. Then people will have to pay a high fee for bitcoin transfer. The biggest advantage of the Bitcoin system against banking systems was that they could shop without paying commissions to any brokerage house. If this happens, can bitcoin preference be reduced?

If someone stops mining, then the difficulty goes down, this means the ones that are still mining get a benefit from continuing mining. So if someone leaves, the system automatically self regulates in a way that it creates an incentive for the rest of people to keep mining and for other people to join in as the difficulty goes down. There is always profit to be made by mining BTC.

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Quote from: BitcoinPanther on January 09, 2017, 05:04:26 PM

Quote from: fikihafana on January 09, 2017, 04:52:06 PM

not really. Bitcoin reward maybe decrease but bitcoin price will increase. It's why bitcoin price always increase year by year

Or bitcoin price decrease, mining profitability decrease, miner decrease, difficulty decrease, power use in mining will also decrease, making mining profitability increase. It is a cycle. Each sector will adopt to the changes of each sector. The only thing that will stop bitcoin is when the demand of people to have bitcoin stop.

Exactly as long as the demand of people to have bitcoin is exist then bitcoin will never end, like people said the price will be increase due to the mining reward will be lowered down so that mining will be profitable, but actually i'm wondering about what if all the bitcoins in this world have been mined, will bitcoin mining be profitable? after all the 21 Bitcoins have been mined? since there will never be any new bitcoins for miner to verify.

shield132

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Nowdays mining isn't dead and it's profitable for big companies but your question seems very serious. If after many halvings, fee will be increased and also at the same time bitcoin's price will increase also, than it won't be preferable payment system and mostly bitcoin payment won't be so comfortable but hope that won't happen by that way. While mining hardwares can mine without any big problems and there is RIO in one year, it's price won't be so highly risen and while time goes, technic is developing and there are less risks of unprofitable mining in future.

Teemotje

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No I do not think that it will than end because this already happened multiple times So mostly likely it will stay like this even without it.

BitcoinPanther

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Quote from: fikihafana on January 09, 2017, 04:52:06 PM

not really. Bitcoin reward maybe decrease but bitcoin price will increase. It's why bitcoin price always increase year by year

Or bitcoin price decrease, mining profitability decrease, miner decrease, difficulty decrease, power use in mining will also decrease, making mining profitability increase. It is a cycle. Each sector will adopt to the changes of each sector. The only thing that will stop bitcoin is when the demand of people to have bitcoin stop.

fikihafana

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not really. Bitcoin reward maybe decrease but bitcoin price will increase. It's why bitcoin price always increase year by year

sportis

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To my point of view when the reward of mining is not sufficient miners not only cover their expenses but to have a profit too then:
1. First will increase the fees. Even nowadays bitcoin is not the proper way for micropayment transactions. May be if consensus achieved other ways like lightning networks will arise.
2. Secondly some of them (miners) may mine other alt-coins. Of course bitcoin is the leader but some of them are promising too.

After the genesis block (8 years) so many things happened in bitcoin ecosystem. Imo the moment the reward of mining blocks will not satisfy the miners is far way, so there is no reason to worry about

BitMaxz

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Quote from: cryp24x on January 09, 2017, 04:17:01 PM

Quote from: BitMaxz on January 09, 2017, 04:14:30 PM

Quote from: st0nefish on January 09, 2017, 07:45:23 AM

At the moment the miners for a block are awarded 12.5 BTC. Every 4 years this value will fall by half. For example, let's imagine that the prize value is 1.5 BTC for each block and that BTC's value against the dollar does not increase. In such a case, mining will not be very profitable.

At the same time, miners are also benefiting from the value of the fee. This time the fee values will increase. Then people will have to pay a high fee for bitcoin transfer. The biggest advantage of the Bitcoin system against banking systems was that they could shop without paying commissions to any brokerage house. If this happens, can bitcoin preference be reduced?

I think they are balance the profit and fees for those who are mining bitcoin.. and i think it will not end bitcoin because of the block rewards are decreases every 4 years or block halving.. the price of bitcoin is always depends in the supply and demand so if our block rewards are decrease i am sure that the price could be rise that can increase your profit or it can be still balance because of the price increases.
Its impossible that the price will not increase and mining will not profitable. if the difficulty is increased i think your mine coins daily will be deacreses but the price bitcoin could be increase because bitcoin is in demand and many companies right now are using it. .

I also think that bitcoin mining profitability have the capability to balance itself. As long as there is demand for bitcoin, mining will always be profitable at the end after all the adjustment of difficulty. It was just now I realized how great is the design of bitcoin ecosystem.

The first thing if you are smart its obvious that its still profitable if bitcoin mining is not profitable many business miner will stop to mine bitcoin instead better to go in other coins to mine and profitable.. that can affect bitcoin difficulty to be low and i think the transaction also will be slow because of miners stop mining bitcoin due to bitcoin mining is not profitable..
That is why there is block halving they are helping miners that bitcoin could be profitable and increase more the value of bitcoin the more the price was increase the more bitcoin mining to be profitable.. unless if you are paying a large electricity in you country it cant profitable..
The minimum electricity cost that i think profitable is below 10 cents..

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Quote from: BitMaxz on January 09, 2017, 04:14:30 PM

Quote from: st0nefish on January 09, 2017, 07:45:23 AM

At the moment the miners for a block are awarded 12.5 BTC. Every 4 years this value will fall by half. For example, let's imagine that the prize value is 1.5 BTC for each block and that BTC's value against the dollar does not increase. In such a case, mining will not be very profitable.

At the same time, miners are also benefiting from the value of the fee. This time the fee values will increase. Then people will have to pay a high fee for bitcoin transfer. The biggest advantage of the Bitcoin system against banking systems was that they could shop without paying commissions to any brokerage house. If this happens, can bitcoin preference be reduced?

I think they are balance the profit and fees for those who are mining bitcoin.. and i think it will not end bitcoin because of the block rewards are decreases every 4 years or block halving.. the price of bitcoin is always depends in the supply and demand so if our block rewards are decrease i am sure that the price could be rise that can increase your profit or it can be still balance because of the price increases.
Its impossible that the price will not increase and mining will not profitable. if the difficulty is increased i think your mine coins daily will be deacreses but the price bitcoin could be increase because bitcoin is in demand and many companies right now are using it. .

I also think that bitcoin mining profitability have the capability to balance itself. As long as there is demand for bitcoin, mining will always be profitable at the end after all the adjustment of difficulty. It was just now I realized how great is the design of bitcoin ecosystem.

BitMaxz

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Quote from: st0nefish on January 09, 2017, 07:45:23 AM

At the moment the miners for a block are awarded 12.5 BTC. Every 4 years this value will fall by half. For example, let's imagine that the prize value is 1.5 BTC for each block and that BTC's value against the dollar does not increase. In such a case, mining will not be very profitable.

At the same time, miners are also benefiting from the value of the fee. This time the fee values will increase. Then people will have to pay a high fee for bitcoin transfer. The biggest advantage of the Bitcoin system against banking systems was that they could shop without paying commissions to any brokerage house. If this happens, can bitcoin preference be reduced?

I think they are balance the profit and fees for those who are mining bitcoin.. and i think it will not end bitcoin because of the block rewards are decreases every 4 years or block halving.. the price of bitcoin is always depends in the supply and demand so if our block rewards are decrease i am sure that the price could be rise that can increase your profit or it can be still balance because of the price increases.
Its impossible that the price will not increase and mining will not profitable. if the difficulty is increased i think your mine coins daily will be deacreses but the price bitcoin could be increase because bitcoin is in demand and many companies right now are using it. .

lionheart78

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I do not think that bitcoin will end when mining profitability decrease. As long as there is profits, people (Bitcoin miner) will mine Bitcoin. Even if Bitcoin mining is not profitable, people will stop mining but I would say not all will stop. This will lessen the hashing power of Bitcoin but will lessen the difficulty after the next block. Balancing its system of Hashing Power and difficulty and then afterwards profitability.

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Quote from: pinoycash on January 09, 2017, 07:47:34 AM

Quote from: st0nefish on January 09, 2017, 07:45:23 AM

At the moment the miners for a block are awarded 12.5 BTC. Every 4 years this value will fall by half. For example, let's imagine that the prize value is 1.5 BTC for each block and that BTC's value against the dollar does not increase. In such a case, mining will not be very profitable.

At the same time, miners are also benefiting from the value of the fee. This time the fee values will increase. Then people will have to pay a high fee for bitcoin transfer. The biggest advantage of the Bitcoin system against banking systems was that they could shop without paying commissions to any brokerage house. If this happens, can bitcoin preference be reduced?

No really, only the BTC reward will be lowered but the BTC price will increase due to the law of supply and demand, less BTC less supply more demand, high prices.

Along with that fact we can also say that with the passage of time the remaining coins will reduce in umber and one day all of the coins will be mined and with the limited number of bitcoin its price will be much higher and the miners will rely on the fees of transaction which is also good in amount.

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Mining end in the year 2140 so in my opinion is the last thing we should worry about as I am pretty sure we will all be dead and forgotten at that year 2140.

As others have already said then it would depend on transaction fees and also bitcoin will not end but it will be extra expensive as there will be only this amount of bitcoin in circulation(21mln coins) and if people by then decide not to sell than the price should only go up.

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