What happens if bitcoin price falls below the cost of mining it? - page 2.

BaraxLo

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Quote from: spongegar on October 01, 2018, 01:23:51 AM

Bitcoin has been running long and mining as been running long too that we would eventualline everything. That being said, once the price of Bitcoin is lower than the cost of mining it then we have mined all the Bitcoin and the price of Bitcoin itself woyld start to stabilize completely. I daresay i hope it would come soon.

Sorry to say, but at the moment, you really sounded like a drunk with all these you have posted. What has mining all of bitcoin gotten to do with the price going lower than mining price or its stabilization? At least, if you do not know anything about a topic, you do not have to post, and this is where you should be reading and get familiar with what everyone is saying but of course, a lot of you are too lazy to want to know and do not care to even gain the knowledge, except to increase post count and instead, you just come to the public to embarrass yourself.

Apparently, we have seen bitcoin price fell below the cost of mining before and the likelihood of still experiencing it would be there. It won't change anything at all, as this would simply affect the small miners and in that case, as smaller miners get out of the space permanently or temporarily, the difficulty will reduce and that would mean more incentive for the bigger miners. Absolutely, I am sure satoshi already though about issues like this and has fashioned that out.

gambitcoin53

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i see it otherwise, this past 2 years, mining has greatly affected the market price, some big holders are into mining, they see it more effective way to gain bitcoin, which resulted in abundance supplies on the market making the price drop. if the price of bitcoin falls, and the cost of mining it is high, i think the trend on the dip will continue until there is too much supplies on the market, which is not good, more supplies means low price.

ucingucingan

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If prices fall more in the bitcoin, then it will be very detrimental for the miners, given to mine the huge costs required bitcoin to pay for the cost of electricity and the internet had not been a fee for maintenance of the device, then if the price fell it will make the miners suffered heavy losses

Ucy

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Compare rates on different exchanges & swap.

Quote from: alyssa85 on February 02, 2018, 11:25:55 PM

Quote from: Bitcoinbelowmine on February 02, 2018, 10:28:52 PM

Would bitcoin be able to recover? Are we safe since 80% of bitcoin has already been mined?

I remember it happened once in 2011 (https://www.themarysue.com/price-bitcoin-falls-below-mining/amp/).

Satoshi thought and planned for it.

If the bitcoin price falls below the cost of mining, some miners will exit. It will temporarily cause block discovery to lengthen as the existing miners striuggle - but after 2400 blocks, the difficulty will adjust down. That means it's easier to mine. (The difficulty is directly linked to the cost of mining as you need many more miners to win a block when the difficulty is high).

Basically you'll get iterations of this till the cost of mining falls below the bitcoin price. If the bitcoin price fell to $1 I expect you'll be able to mine them with your laptop as the professional mining farms will have long given up.

Good explanation bro.

Been wondering how this would work on Proof of Stake in terms of profitability. Proof of Works miners could easily sell off their mining equipments, use them for other coins or keep them until mining becomes profitable. But Proof of Stake people lose in several ways:
1. Their holdings devalue massively,
2. They will hardly mine enough coin commensurate with their stakes.
3. And worst of all, their coin is locked.
Seems the creators didn't anticipate this things

Well I wish this whole thing deters people from acquiring large mining equipments so that mining can be decentralized.

sinkfish

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it might but not for long. some miners cant afford the cost will shutdown their machine, which in turns reduce the hash rate. the remaining miners will eventually meet the break even when the price rise again.

erikoy

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Quote from: safeend6 on March 18, 2018, 11:15:18 PM

Dont know about it because i am a newbie and just started to earn btcs by the aid of small aids

well for your information since you are a newbie there is a section you needs to visit. Try and check on meta section and learn the basic rulings so that you will not be banned on this forum. Frequent reason for one to be ban is plagiarism so do not expect that you will not get reported because there are many people here would like to report on you!

Now for mining bitcoin does not require that much mining fee because it will depend on the volume of bitcoin being transferred or converted. For example you have converted 1 BTC so there is an equivalent of 3% to be deducted on the transaction you will going to made and that would be in terms of satohis which has a corresponding value in dollar or any fiat currency. Again it is 3 % of the value of the bitcoin you are trading does the mining fee to be deducted.

el kaka22

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Quote from: Bitcoinbelowmine on February 02, 2018, 10:28:52 PM

Would bitcoin be able to recover? Are we safe since 80% of bitcoin has already been mined?

I remember it happened once in 2011 (https://www.themarysue.com/price-bitcoin-falls-below-mining/amp/).

It really doesn't. Whenever the price drops to a certain level the miners stop selling their bitcoins they mined which means it is really hard to find people that sells for lower.

Considering you need more people selling than people willing to buy for the price to drop if you take away all the miners that sells their coins you find that buyers always overcome the sellers in that case when miners don't sell, which means whenever price drops below the price of cost of mining the price goes up. It always stands at the price of profit no matter what because you can't just take away the miners and expect the buyer/seller sides to be equal.

conected

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Quote from: maxman190 on October 02, 2018, 07:25:44 AM

Even if the production is unprofitable in connection with the price , people will still produce it, because everyone is sure that the price will be normalized and everything will pay off.

- Now is not beneficial but after this, it will be another matter, this is the thinking of the miners and because of this positive thinking, miners will work with all productivity until the last bitcoin is exploited, worrying and thinking about the current benefits only make them ignore the benefits in the long run, they do not have time for that. In addition, the price of bitcoin fell below the cost of mining, all this is probably the plan and the cooperation of miners with other big bosses, they want to make more bitcoin to control the market more easily

maxman190

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Even if the production is unprofitable in connection with the price , people will still produce it, because everyone is sure that the price will be normalized and everything will pay off.

Ctn

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If more than 99% bitcoin is also mined then also you will be in profits because at that time you wont be getting any coins mined but you will still have to confirm the transactions and thus for doing that work you will have to mine and you will getting your rewards in terms of heavy fees I believe. Yes, the fees that will be taken by you is the only income source you will have. I am guessing if you cant get the bitcoins anymore then probably the fees for the mining operations will rise heavily. Just like the incidence of last december when there was heavy congestion in the network and thus to cop up the situation they risen then fees drastically. One way another mining will always go on. Cheesy

inding

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I don't think this will happen. When it is lower than this price, the miners themselves will buy bitcoin. The decline is only temporary, the rise is certain, but you must wait patiently.

spongegar

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Bitcoin has been running long and mining as been running long too that we would eventualline everything. That being said, once the price of Bitcoin is lower than the cost of mining it then we have mined all the Bitcoin and the price of Bitcoin itself woyld start to stabilize completely. I daresay i hope it would come soon.

Mihaylovic

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i dpnt think it is possible in short term. but if it happens, some miners give up mining and difficulty decreases. so remaining miners keep mining with a less mining cost due to lower difficulty. this system has its own internal balance.

Bondho Kompeni

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Of course there will not be anyone who transacts in bitcoin, as we know that the most preferred thing about bitcoin is the cheap transaction costs, when the transaction costs are very expensive that ever happened in December to February, it certainly makes people do not want to send bitcoin.

Eros1on

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It is possible that the price of BTC is lower than 10% of the cost price, but it is impossible to maintain in the long run, and the possibility of any speculative product falling below the cost price is very small.

korean1999

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Quote from: Bitcoinbelowmine on February 02, 2018, 10:28:52 PM

Would bitcoin be able to recover? Are we safe since 80% of bitcoin has already been mined?

I remember it happened once in 2011 (https://www.themarysue.com/price-bitcoin-falls-below-mining/amp/).

if that happened i don't think anyone would want to waste their time investing on something can't make any profit. But since 80% of bitcoins have already been mined the possibilities of bumping in the that situation again is very low so we have nothing to fear of.

RobertmcCoy86

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True, about 80% of bitcoin has been exploited and bitcoin being exploited may not be as fast as it once was, the high cost of exploiting the remaining 20% bitcoin is certainly. The extraction cost may be higher than the bitcoin value, but it does not affect the bitcoin value.

Pansamantala

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Quote from: Protonem on August 04, 2018, 07:29:45 AM

Quote from: Kakawate on August 03, 2018, 07:42:37 PM

In my opinion, Bitcoin mining is meant to come to an end, knowing that the number of bitcoin is limited, miners knows this, as well as the whole cryptocommunity, But it doesn't dictate the demand of bitcoin, if the consumers continues to value bitcoin or any other cryptocurrencies then the cryptocommunity will continue and bitcoin will survive. Of course by this time, bitcoin miners would have definitely find another way of earning money. I think even though the miners have completely mined all the bitcoins out there, the crypto world would continue.

Bitcoin supply is limited, but I am sure that not all Bitcoin will be able to be mining with the assumption that mining costs will be even greater, while now prices are falling. The period of earning money from mining is certainly no longer a profitable thing.

Well if this happens, bitcoin miners will stop mining because of the expenses they are using in able to provide there needs and they just settle down. If this happens more probably the market will be down, if this happens more investors will come in because of the low value of bitcoin. With this the bitcoin's market will rise again. And so transaction continue at the same time the bitcoin will be the currency of the future.

best ever

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Quote from: websoftwareengineer on August 04, 2018, 11:14:57 AM

Quote from: Escan0r on August 01, 2018, 06:35:02 PM

I think the miners don't really make the price of bitcoin fall so much but new investors who panic when they see the price of bitcoin go down and sell it. Because of this they only help bitcoin become more down because it sells when the price of bitcoin falls.

Miners will be losing profit and most of the people will be delaying on their transactions since miners will stop running the block chain but as of now, the state of the market is running good and bitcoins is on $7k dollars price.

Each year the profits from mining become smaller and smaller, and the price of the equipment is growing. Despite it, I believe that Bitcoin is not going to fall so critically.

SplendidHunter

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Quote from: Bitcoinbelowmine on February 02, 2018, 10:28:52 PM

Would bitcoin be able to recover? Are we safe since 80% of bitcoin has already been mined?

I remember it happened once in 2011 (https://www.themarysue.com/price-bitcoin-falls-below-mining/amp/).

I think that now in recent days this case is more possible than it was before and I think that because the mining price is significantly growing from the time that previous case happened.

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