Bitcoin took a beating after China's crypto-mining ban and is now down nearly 50% from it's all-time high. The latest shakeout in digital currencies also stems from tighter scrutiny in the United States.
Topic: Mining is illegal in China now? - page 2. (Read 458 times)
If 60% of the hashrate would "dissapear" all at once (eventough i seriously doubt it'll ever come to that), you can expect the average time between 2 blocks to be ~16 minutes for a maximum of 2016 blocks. After this, the difficulty will be adjusted so the average time between 2 blocks is once again ~10 minutes.
At this point, for normal users, it'll be like nothing happened... The only thing that will be visible is there might a bit of a backlog in unconfirmed transactions, and the chinese miners make no more money... The coinbase rewards they would have collected now goes to the leftover miners.
Coinbase rewards are not calculated based on the number of miners, or the network's hashrate... Even better: there is no way to conclusively know how many miners are currently turned on, and what the exact hashrate of all miners combined is... You can calculate how much the total hashrate approximates because you know the difficulty, but that's about it. The difficulty gets adjusted every 2016 blocks if the average time between 2 blocks wasn't exactly 10 minutes.
In reality, if China is serious this time (it isn't the first time they "attacked" bitcoin), you'll probably see a couple of miners turn their gear off each week... You'll probably won't even notice this... The average time between 2 blocks will be slightly more than 10 minutes for a couple of months, and each diff adjustment, the difficulty will decrease a little bit... At least, that's what i think would happen if China outlawed bitcoin mining...
At this point, for normal users, it'll be like nothing happened... The only thing that will be visible is there might a bit of a backlog in unconfirmed transactions, and the chinese miners make no more money... The coinbase rewards they would have collected now goes to the leftover miners.
Coinbase rewards are not calculated based on the number of miners, or the network's hashrate... Even better: there is no way to conclusively know how many miners are currently turned on, and what the exact hashrate of all miners combined is... You can calculate how much the total hashrate approximates because you know the difficulty, but that's about it. The difficulty gets adjusted every 2016 blocks if the average time between 2 blocks wasn't exactly 10 minutes.
In reality, if China is serious this time (it isn't the first time they "attacked" bitcoin), you'll probably see a couple of miners turn their gear off each week... You'll probably won't even notice this... The average time between 2 blocks will be slightly more than 10 minutes for a couple of months, and each diff adjustment, the difficulty will decrease a little bit... At least, that's what i think would happen if China outlawed bitcoin mining...
From what I have read and heard from people (based on very little experience I have), the total hashpower of the Bitcoin network will drop if number of miners go offline. So in theory, payout amount will also get reduced in this case. And payout also depends on the value of the currency. But I am not sure if all this is entirely true.
Now that Mining is supposedly illegal in China (or will be), will that increase the amount of payouts to existing miners of btc,eth, etc.. ?? They currently mine 60% of the coins out there, right?
Assuming they actually stop mining when they have to; or is that logic not correct?
Assuming they actually stop mining when they have to; or is that logic not correct?
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