Topic: The future of Bitcoin mining (Read 265 times)

There is actually no guarantee that we will not have any BTC mining facilities after a century.  So the statement goes either way but I agree that to take advantage of the block reward,  a person who have plan to engage in Bitcoin mining activity must do it as soon as possible because Bitcoin blockreward will keep on decreasing every 4 years, and if the person who wanted to engaged in mining delay his plan, he will be only at lost if he do it years later.  Just like if he got fund and plan to setup the mining farm on 2025, he will be missing out on the current block reward since he could have enjoyed the current block reward that is two times the reward of 2025.

I think that there is actually no guarantee that we will have any BTC mining facilities after a century. So, yes, the best way to get some profit out of mining is to start mining now. Later there can be many issues: not only technical, but also legal. Moreover, there will be numerous blockchain projects in the future, most of them will require specific mining facilities. So the only way to get some knowledge about mining algorithms is to start mining with the tools we can afford now.

Op, as you pointed out yourself, the price increases assuming that the demand remains unchanged. But the thing is, both Bitcoin supply is growing (albeit at a slower and slower rate) and the demand is fluctuating. So it can't be said with certainty that Bitcoin will grow even better once mining is complete because it's possible that some of the demand will decrease as well (maybe some people are interested in Bitcoin because new coins still appear or directly because of mining, for instance). Also, let's not forget that it's highly unlikely that any of us will still be alive by the time Bitcoin mining is done.
And as for the conclusion about mining, people should keep in mind that mining is already very competitive and complex. The equipment is expensive, maintaining it also requires resources, and electricity bills can be very high.

I don't think you're understanding my point there, all am saying is that the reduction of coin supply each halving causes scarcity which can also affect the increment of price, this theory is from economics
The reason you fill Bitcoin is less scarce than it was 10 years ago is because it has not been globally accepted or its restriction removed, the total number of persons in the world is 8billion out of which 219million are Bitcoin owners with only 19million Bitcoins in circulation and you call that less scarce.


Wasn't sure if image copyright also add to plagiarism in this forum, I admit am not an island of knowledge just a Jr member and I have learnt from comments that its not necessary, thanks anyway.

lol , sorry...!
Well, I think you are mining a post for your campaign, that is defined user script SC.

In any case, with mining, the future of what was going to happen was written from the beginning, there was never anything hidden and it was always known that complexity was going to get a certain group of users out of mining.

In fact, in that early process of the first years of bitcoin, progress could be seen in how the Hardware determined its existence in its computing capacity. So the future of mining in its relevance has always been clear, it is limited to a small group that can bear the costs.

OP: I have one question.
the watermark is... for that your copyright is not stolen...

Bitcoin mining is very easy for those who have an idea about Bitcoin mining but those who have no idea about it think that Bitcoin mining is very difficult. It is normal for a person to find everything difficult in the initial stage. Although Bitcoin mining is relatively easy, many people plan to buy Bitcoins with that money and hold them for a long time instead of mining Bitcoins due to the high cost of electricity. It would be a better decision to hold bitcoins instead of mining bitcoins at the moment because rising prices of electricity and other commodities can lead to losses rather than profits by mining bitcoins, so instead of taking this risk we have to take the risk of buying bitcoins and holding them for a long time.

Even when calculated according to the blocks above, the price of bitcoin fluctuates dramatically. 2020 A bitcoin coin price was very low and in just one year the price of a coin has jumped to a lot higher. But after that, the price of bitcoin fell again so you can understand how volatile the bitcoin market is so it is very difficult to determine the exact value of this coin. The price of bitcoin tends to rise based on demand as the price of bitcoin gradually increases, it is a good decision to hold. Although there are benefits in bitcoin mining, but due to some other reasons, the issue of security of Bitcoin storage comes to the fore, many times it is under the grip of scams then it becomes difficult to solve.

The computation for the blocks will only ever increase, profitability of mining will still be there even if blocks gets harder to solve each time. Given that the price of bitcoin increases overtime even if we generate more bitcoin, the payments for the miners will still be profitable. I don't think that we will come to the point where there will be no miners for bitcoin, as I've said before, bitcoin goes up in value which makes it more lucrative for people to get bitcoin and what better way to get those bitcoins besides buying but mining them. Also, ease your worries about that thing because I am sure that you can't do anything about it anyways. The less you know the better as the title of the Tame Impala song goes.

Your knowledge is actually not knowledge at all.
The available supply of coins grows every day, Bitcoin is now less scarce than it was 10 years ago, you're deeply mistaken the rate at which coins are issued each period for supply, two completely different things.
For the supply to decrease you would need to actually destroy each day more coins that are getting mined.


It is a misconception just as ranochigo said.
Furthermore what you're saying is an assumption, which even if proves true on the demand part doesn't take into account that the daily supply will also put pressure on the price.
Assuming you have right now a balance and the 900 mined bitcoins are covered by an influx of  27  million each day, the price going up to $100k even despite a halving would still require more money, a 45million daily but will also require another batch for the people that will decide to cash in the profits they've made for buying at $30k, your take is just oversimplistic and that doesn't always work in the real world.

I mean... what is it possible that mining lowers its performance instead of increasing it? That means that as time goes by, mining will no longer be as profitable as it is now? Although if I think about it and examine the situation a bit, surely what will increase will be the exchange of this currency, since if the extraction of bitcoin little by little will no longer be as abundant as it was before, people will prefer to choose not to mine and dedicate yourself to another business with bitcoin either investing in it or focusing on trading..and even so I am sure that despite the fact that the scarcity of the existence of bitcoin is noticing, this will not stop being an asset desired by many …What does worry me is that people no longer want to mine bitcoin, I wonder what would happen then? What impact would it have?

Thank for the link, and the explain everything needed to know but I was concerned on the bolded part of your comment. And I don't think I was confused. Well let end it here.

I was beginning to think of locking this thread since the information passed was not understood by the replies earlier, but it now seems to me that some person have good understanding of the points I tried to pull down.

Thanks guys for your opinion, I have indeed learnt a lot from the links and comments posted.

I think you are confused.  It was answered in the Bitcoin FAQ


So it means that after the last Bitcoin is mined, the mining continues but this time the reward is dependent on the transaction fee.  Miners will continue to mine and since there is a century  before the last Bitcoin is mined, it was speculated that the transaction fees will give miners a good benefit but of course this kind of speculation may happen or may not.

Remember when the 21m bitcoins are mined then there would be no transaction again and that means bitcoin investment and trading plus p2p  transaction and every about bitcoin has stopped, or is there any other way people will be using it again? Or is it that I am the one don't understand the statement that "all the 21m BTC will mined?
Without mining bitcoin trading can not be done. Trading must involve p2p and p2p transaction must involve mining because it is the Miners that will mine the coins in the blockchain and accept the transaction. So I can't remove trading from mining.
Though there are two types of trading and I don't know the particular one you are talking about. 1. Buying and selling trading which is the one I am referring to and 2. Chart trading which the monitoring of chart to see the movement of bitcoin in the market through pie or bar chart  after depositing a specific amount. So which of them are referring to?

Same here, I also got confused when @agbe stated that he don't think the 21m Bitcoin will be all mined when in fact according to the computation and data presented, there is already a specific years when the last bitcoin will be mined (except the transaction fee).

Anyway I would like to support that Bitcoin trade has nothing to do with Bitcoin mining because these two are different activities.


Not at all a misconception IMO, in a controlled environment where adoption continuously increasing, and there is a sudden decrease of influx of coins(halving of supply), it will be conceived that the price will get higher because of the lessen supply pressure while the demand keeps on piling up a typical supply and demand law.

I am choosing to HODL my bitcoin. I have already research about the Bitcoin mining and how it's easy but it's complicated business when you start from the scratch. I know very well that we have plug and play equipment's for mining purpose but let us not forget they are also very costly, they utilize high energy bills and also the ROI is always more than 1 year or something based on what type of miner we have and electricity cost we pay. Yes, everything is there, but ability to get started and go through the entire ROI period is unreal right now. Plus, the net halving is already going reduce the block reward and we have no idea whether the prices will hike or not. At least miners has chance to recover the ROI faster when BTC goes up but it's unsure. This is why I am always choosing to buy bitcoin and keep them on my wallets for long terms. I will now just trust the process and go for profiting along the way.

Presently now, bitcoin is the only most profitable digital asset of an investment, those that could bear the challenge now while holding up will enjoy it's profitable investment over years, bitcoin is unlike fiat that has unlimited supply, the value increases over time and have a finite supply, bitcoin value cannot deminish despite it appears being volatile, in a couple of decades to come, we would have been seing bitcoin close to the value of million dollars since it has a limited supply, the demand will always increases and thereby increasing it value as well, if there's an opportunity for buying today, it's the best act to go for and invest, hold and have a secured profitable investment with bitcoin.

You have compiled a great set of information there full of stats that a newbie must be aware of. Because to convince someone to invest into BTC, these stats are enough i think. But every investor has there own mindset about investing. For example, most of the people wants full assurance and they want to invest on the shoulders of others. Because they will blame those shoulders when the price will not move according to the stats of yours.

I am not saying it will not gain value and i am also not saying it will not decrease value. All, i have to say for a newbie or pro, is before investing make up your mind set like what are you expecting from that holding and you must have to admit or agree that the coin you have invested in, you might have to wait for longer period of time to withdraw them because nothing can be predicted accurately in crypto. I gave these advices to one of my friends who wanted to invest 200$ in BTC. Amount is not that much but he is ok with such money only. So, i suggest him the same and asked him to bear the loss too while not blaming me, because i am not convincing you to invest instead giving you the knowledge i have and your decision must be based on your mindset and the required needs of yours.

There is a misconception that Bitcoin's price will increase with each halving because it is getting more scarce. While that is true to a certain extent, you have to consider that Bitcoin doesn't get more scarce as the amount of Bitcoin in circulation is still increasing albeit in a slower rate. In addition, the price is also determined by the demand for which the halving cannot predict. Both of these factors are the main components of what influences Bitcoin's price.

Your tables are not new so you don't need to reserve copyrights with Watermarks which are unnecessary.

Bitcoin controlled supply
Bitcoin Equivalent Network Time

Bitcoin mining will continue if miners get profit from mining which will depend on block rewards, transaction fees and price of Bitcoin. So if Bitcoin continues its growth of adoption, price will follow it and future of mining will be good.

I think it will be good.

I'm struggling between understanding whether you're encouraging mining or buying of Bitcoin and again if you're giving us an effect of halving in this your post OP it's clumsy so many things said.

I don't actually have the capital to start up a mining farm considering the cost of mining machines, electricity bills and other  equipments, I wish I had. But that doesn't mean I should not encourage other who are financially capable of setting up a mining farm to do so.


I have done that, thanks for the reminder

Please enlighten because I honestly understand this statement of yours. How is the buying and selling of Bitcoin affects the mining of Bitcoin? 21 million can be mined since that’s the total supply designed by Satoshi but not all of them will be in active circulating because of the Bitcoin from lost wallet.

The fact that bitcoin is already capped at 21 million is already a scarcity, the scarcity doesn't start when all the bitcoin has been mined. I don't think it's the time, mining equipments are getting more expensive and with the halving ever nearing, it's going to get much harder for individuals to earn bitcoin through mining, you have to also consider that rigs get hot and you will need an air conditioning or cooling for your rigs and that's an addition to your cost for maintaining a small mining operation.

Op you have to put the sources of your information because your thread is talking about the historical analysis of bitcoin so we will need to read the sources to tally the information provided. Mostly your pictures. And I don't think the 21 million bitcoin will be all mined because every day people sell and people buy so bitcoin is always in circulation in the market. So I don't know why these threads are coming these days.

Since you have made this conclusion, it's mean you know mining is profitable.

Now I want to see the picture of your mining farm, how much your expenditure and how much the profit you made until now. It's not make sense if you suggest us to mine Bitcoin when you're not know how profitable is mining Bitcoin right now.

I will wait your next reply, just upload your image in third party hosting image e.g. talkimg share the link here.

The total amount of Bitcoin to ever exit equals 21million and and after this bitcoins have been mined there will be no generation of new coins into the system, and this will causes scarcity (limited supply) thereby increasing its price. According to the law of supply and demand in economics which state that as supply decrease, while demand remain unchanged the price increases. This theory can be used to predict that Bitcoin would be able to ascertain of height of price worth millions of dollar, having this knowledge I recommend that buyers should go into long term holding of Bitcoin as each halving comes with reduction of coin supply.

Total circulated coins from 2009-2023


there are 19,452,931.25 total circulation of Bitcoin in the world, remaining 1,547,068.8 to be mined for the next 116 years to come, and after these coins have been mined there would be no more block rewards for miners who successfully guesses the block number, the only payment they'll get at that time would be the transaction fee for every transaction in the block which they validates, and these transaction fee can only profit the miner if the fee surpasses the expenses of the mining farm, and this can be possible when the  acceptance of Bitcoin by nations, companies, businesses, etc increase to a reasonable amount whereas also increasing its transaction rate, though miners are now beginning to use renewable energy source for mining so as to increase profit but this will not guarantee their satisfaction.

BTC circulation till the end of the halving


The current block reward for mining is 6.25 Bitcoin for an average of 10minutes which is regulated by the mining difficulty so that coins are not mined too fast or too slow, the mining difficulty increases if it takes less than a week to mine 2016 blocks while it decreases if it takes two weeks to mine 2016 blocks,
This difficulty will eventually frustrate some miners to quite especially when mining reward gets to 1satoshi per block, even it Ai are used in future mining to increase efficiency and speed they can not exceed the mining difficulty.

Conclusion
Now is the time to go into mining and buying of Bitcoin as each halving reduces the block reward by 2 which causes scarcity that has the potential of increasing price.

Source
https://www.statista.com/statistics/247280/number-of-bitcoins-in-circulation/

https://www.google.com/search?q=total+circulated+bitcoin&oq=total+circulated+bitcoin&aqs=chrome..69i57j0i13i512j0i390i650l3.17669j0j4&sourceid=chrome-mobile&ie=UTF-8

https://www.coinbeast.com/post/bitcoin-halving-dates-clock-countdown-chart

https://stormgain.com/blog/how-long-does-it-take-mine-bitcoin?amp