Topic: If the mining profits decrease, will Bitcoin end? - page 3. (Read 3050 times)
Thats true fees will be replacing the blocks rewards in the future, that isnt new at all, at the next 20 years i expect bitcoin to reach atleast 2000-3000 dolllars, if the halving will happen every 4 years we will reach the moment that the fees should be bigger then the block reward. We wont be alive atleast the big part of us when the last bitcoin will be full mined, but before that fees will be already the best and main reward at bitcoin, something around 2036.
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.
We will know about it in 12 years later when the reward is 1.5 BTCitcoin for every block.
The price should be increasing, especially in 12 years as the supply always decrease.
If the price increase $400/year than it will be great, around $5000/BTC1.
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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?
The fees will cover all of costs and profits for the miners as you said. People will pay same amount of but the value of bitcoin is higher than nowadays, well it consider high fee. Only time will tell, we just predict it that way.
The value will rise, because miners sell their coins at some price. Considering that new people are entering frequently and let's say that they buy the bitcoins available for cheap, more and more you will rise until you hit miners' bitcoins. This is the case where the market would be forced to adjust to a greater price, but you know, the natural growth of the users if for me enough to keep the most competitive mining facilities profitable.
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?
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.
Miners that are there for mining profits will leave but some who do it to acquire bitcoin will stay. Profitability in mining, considers the cost of production especially electricity to validate the profit level
It simply means that the ones we have will now be contested for and the value of Bitcoin will therefore increase significantly but at the same same it will come with its own disadvantages in the sense that when the price becomes un-affordable then I see other Alts lining up to take its place which in the long run might eventually makes bitcoin worthless when nobody is asking for it...
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?
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?
Bitcoin is real invention of this century and also prepared with proper precautions. We must have to admire developer of Bitcoins because they have already predicted everything considering future of Bitcoin.
As we know after every 4 year Bitcoin halving occur. Which directly impact to price of reward after solving block. Bitcoin mining will be held till 2145. And I think Bitcoin mining will be there till mine last Bitcoin.
And till that time price of Bitcoin will be skyrocket.
When mining reward will be lowered down, it will limit the supply of bitcoin which can boost price per bitcoin so mining will be profitable even with low block reward. Also in future efficiency of mining hardware will be high which will minimize the cost of running mining hardware.
Fee bitcoin may have in future will be still far lower than traditional centralized payment processors so bitcoin will be preferred due to low fee on that time. Also bitcoin have many advantages over other payment processors beside low transaction fee, i think demand will keep on increasing for bitcoin rather than getting lowered down.
Fee bitcoin may have in future will be still far lower than traditional centralized payment processors so bitcoin will be preferred due to low fee on that time. Also bitcoin have many advantages over other payment processors beside low transaction fee, i think demand will keep on increasing for bitcoin rather than getting lowered down.
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?
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?
You already answered your own question, Like what you had mentioned the only thing that will not be profitable is the mining only not the bitcoin itself instead the price value of bitcoinBTC will get more higher and many of the community for sure will buy more of it.
Mining profits or reward has nothing to do with bitcoin being popular and will never change anything for the largest mining companies, they will always get their profits, this is something proven by time and even though halving happens only crazy thing is the race between miners and them adding mining machines day after day and I think this was intended by satoshi to make people actually do hard works to earn bitcoin to make it more fair whether big or small you need to consume electricity and resources, so for those people thinking bitcoin comes out of the thin air should think again.
Yes, That's correct , Guy. Once the bitcoin rewards decrease, Bitcoin price must increase then some big miners will import many big mining machines with lower costs or supercomputers will appear to settle this issue.
Well. This catch my interest. Im wandering what will happen to bitcoin after 4 years or more? The reward on mining gets lower and lower due to bitcoin halving. I think may miners will stop mining because its getting harder and its not profitable anymore. And this could kill the mining industry. Im sure the price will increase. But what if we reacha the point that we cannot mine anymore? Can this be the end?
If miners stop mining then the difficulty will fall and the worst case scenario is that anyone can mine even on the laptops. I don't see this happening as there are many dedicated miners out there trying to get the best hardware available to make mining energy efficient as well as mining competitive. People mine bitcoin and other altcoins based on the expectations that their value will sky rocket in future and hence they take a loss for now.
Mining profits or reward has nothing to do with bitcoin being popular and will never change anything for the largest mining companies, they will always get their profits, this is something proven by time and even though halving happens only crazy thing is the race between miners and them adding mining machines day after day and I think this was intended by satoshi to make people actually do hard works to earn bitcoin to make it more fair whether big or small you need to consume electricity and resources, so for those people thinking bitcoin comes out of the thin air should think again.
As quoted by most users the decreased supply to the increased demand will make the price to sustain without falling beyond limits. To overcome such issues alternate solution gets emerged or will be initiated by the developers who play big role in the long lasting of bitcoin.
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?
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 don't think so. when the mining reward decreases and the supply source of bitcoin will be less well, The price must be higher due to the law of demand and supply or the transaction fees must increase highly and Bitcoin must be alive.
Interesting question. I don’t think bitcoin will destroy if mining difficulty increases because there will be transaction fees to compensate the loss of not mining. Alternatively, even satoshi has stated that in next 20 years, there will be too many transactions or no transaction at all so miners will earn little amount from each transaction and hence they won’t suffer loss.
Yeah. There is no such loss on mining. Even though the difficulty mades harder, all btc miners is always updating and keep adapting on the difficulty of bitcoin so that miners will have profit. There is a solution in every problem. Just trust the devs of miners and keep mining bitcoin
Well. This catch my interest. Im wandering what will happen to bitcoin after 4 years or more? The reward on mining gets lower and lower due to bitcoin halving. I think may miners will stop mining because its getting harder and its not profitable anymore. And this could kill the mining industry. Im sure the price will increase. But what if we reacha the point that we cannot mine anymore? Can this be the end?
I wonder it too. but there is still the so-called fees. I think miners also get some profit from the fees. but lower reward is affected too. however, as long as bitcoin price increase, fees will increase too even the profit may be lower than before. probably a few miners will stop mIning because of that. so , bitcoin will still exist, IMO.
bitcoin will never end, there will always be someone who is going to use it.
also if reward drops, fees can be increased to cover the reward. also the price is rising pretty good and price has been covering the reward half even more than enough.
also if reward drops, fees can be increased to cover the reward. also the price is rising pretty good and price has been covering the reward half even more than enough.
That's the point I want to mention. The fee will increase when the price value decreases. This time, people using bitcoin may give up using BTC because of the high fee value.
Anyway, even if the fees were not to increase, the electricity costs would likely reduce. Those smaller players would exit the market and the bigger miners would earn more fees for their farm. In a hundred years, Bitcoin transactions could potentially have a bigger userbase and the block size would probably increase a lot. That would give more fees to the miner for each block.
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.
If all goes according to plan the block reward will be replaced by fees.
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).
If this happens, can bitcoin preference be reduced?
Can you rephrase that?
That's what I want to say: If the scenarios I mentioned above happen, can people use bitcoin less? So people may not prefer to use bitcoin.
Interesting question. I don’t think bitcoin will destroy if mining difficulty increases because there will be transaction fees to compensate the loss of not mining. Alternatively, even satoshi has stated that in next 20 years, there will be too many transactions or no transaction at all so miners will earn little amount from each transaction and hence they won’t suffer loss.
bitcoin will never end, there will always be someone who is going to use it.
also if reward drops, fees can be increased to cover the reward. also the price is rising pretty good and price has been covering the reward half even more than enough.
also if reward drops, fees can be increased to cover the reward. also the price is rising pretty good and price has been covering the reward half even more than enough.
That's the point I want to mention. The fee will increase when the price value decreases. This time, people using bitcoin may give up using BTC because of the high fee value.
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