Topic: What happens if bitcoin price falls below the cost of mining it? - page 4. (Read 1416 times)
August 01, 2018, 09:10:23 PM
I think if Bitcoin falls below the price it costs to mine that some of the smaller guys will fall off however the big guys will keep rolling in hopes of future price gains. If they made large expenditures they have no choice but to keep on going.
August 01, 2018, 09:07:02 PM
I think just when the last 20% will be extracted and it is worth waiting for the increase in the price of bitcoin.
August 01, 2018, 09:00:16 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 the btc price falls below the cost of mining some miners will exit It will temporarily cause blockchains discoveries to lengthen as the existing miners striuggleI remember it happened once in 2011 (https://www.themarysue.com/price-bitcoin-falls-below-mining/amp/).
Agree once that happen price will rise again since some of the miners are gone and only few miners will sell Bitcoin to gain back the cost of electricity and rigs.
August 01, 2018, 08:51:11 PM
I don't think it would really go lower than the price of mining, because the miners are going to be less likely to sell at a lost. It wouldn't make much sense to them. Mining factors into the whole supply and demand of crypto. Less miners willing to sell at a loss, then less Bitcoins available for sell, thus higher price.
That is a commonly stated misconception.
First, miners must sell most of their bitcoins, even at a loss, to pay for their operational costs: power, cooling, rent, labor, etc.
Second, when it comes to holding bitcoins, miners are no different than anyone else. They may or may not sell the bitcoins they hold at a loss.
Finally, miners are only a tiny part of the market. Miners sell only 1800 BTC of the 600,000 BTC traded every day. Their behavior has almost no effect on the price.
The reality is that if it costs a miner more to mine the bitcoins than to buy them, a rational miner will simply stop mining.
August 01, 2018, 07:35:02 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.
August 01, 2018, 05:32:31 PM
What happens if bitcoin price falls below the cost of mining it?
Lots of dramatic noises and "I told you..." "BITCOIN IS SCAM" comments. etc etc.
Lots of dramatic noises and "I told you..." "BITCOIN IS SCAM" comments. etc etc.
August 01, 2018, 05:31:59 PM
I don't think it would really go lower than the price of mining, because the miners are going to be less likely to sell at a lost. It wouldn't make much sense to them. Mining factors into the whole supply and demand of crypto. Less miners willing to sell at a loss, then less Bitcoins available for sell, thus higher price.
August 01, 2018, 05:20:35 PM
"If Bitcoin prices drop below the cost of mining" miners just stop their operation and use the money they use for electricity to buy Bitcoin. Free market will be adjust according to the supply and demend. Nothing to be worry about to much.
August 01, 2018, 04:58:03 PM
If Bitcoin prices drop below the cost of mining, I believe miners will be selling Bitcoin mining equipment cheaply. Unless Bitcoin is exploited, the Bitcoin trade will be slower, and Bitcoin will collapse.
That will be the worst option, since they are selling the only means that they have to recover their money, that is a terrible deal for them if you ask me but it will be a great deal for those that can get that equipment cheap, but you are overreacting you think that bitcoin will collapse for something so insignificant, if bitcoin could be destroyed by that then bitcoin would have died already. July 29, 2018, 06:51:32 AM
Is this possible?
July 28, 2018, 06:22:14 PM
Indeed, because mining may be the price of bitcoin down because they get it for free, waiting and producing bitcoin. It's very easy on our capital appeals or looking for bitcoin by following the bounty and getting paid bitcoin.
July 28, 2018, 05:47:03 PM
Bitcoin has holded the very important level about 6000$ and it means that big investors and traders are not going to drop bitcoin lower, consequently they believe in bitcoin and they will probably lead bitcoin to achieve new highs. There is a question when will it happen? I do not know exactly that is why I have bought BTC not to miss a new strong upward trend.
For example, look historical data about gold. I remember that gold was bout 200-300$ and nobody imagined that gold would be 2000$. Also we may have a look at bitcoin some time ago bitcoin was 200-300$ and less part of people believed in bitcoin and bitcoin would achieve 20000$. So, I believe that bitcoin will show new highs but I do not know when.
For example, look historical data about gold. I remember that gold was bout 200-300$ and nobody imagined that gold would be 2000$. Also we may have a look at bitcoin some time ago bitcoin was 200-300$ and less part of people believed in bitcoin and bitcoin would achieve 20000$. So, I believe that bitcoin will show new highs but I do not know when.
In economic has a 2 basic asset : demand and supply. If Bitcoin had not been demanded, it would not be mined over than 80%. Also, mining will have no meaning with the drop in price unless demanded. But today it is more hard to see this picture that Bitcoin from mining is at the bottom of its price.
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 Bitcoin ever falls short it might not necessarily be the end. There are numerous alternatives on the market that offer a plethora of utilities that supersede Bitcoin's. Though I feel that a true successor (Bitcoin 2.0) has not yet arrived, instead, the market has many platforms which offer completely different options from Bitcoincoin's blockchain, solving the scaling, speed, and other issues plaguing the network. I remember it happened once in 2011 (https://www.themarysue.com/price-bitcoin-falls-below-mining/amp/).
This could be dangerous assuming it happens because it will be a lost to Mine .But we are not ever going to get to that point.But honestly ,I believe we will never get to that point when bitcoin price will become so low.The price of bitcoin will always almost move in the forward.There are flatuations that are bound to happen here and there but bitcoin is on track to a great victory.
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 we are having quite a lot time before it will be done. I mean the last block will be mined. Ant until that time, I dont think that this case will be real... I remember it happened once in 2011 (https://www.themarysue.com/price-bitcoin-falls-below-mining/amp/).
If Bitcoin prices drop below the cost of mining, I believe miners will be selling Bitcoin mining equipment cheaply. Unless Bitcoin is exploited, the Bitcoin trade will be slower, and Bitcoin will collapse.
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/).
Nothing significant will happen, the miners will have two options, the first is to keep mining despite the fact the current price of bitcoin does not cover the current costs, this is not a problem for big miners since they probably have a lot of cash stored just in case this happened, the second option is to mine something else that is more profitable. I remember it happened once in 2011 (https://www.themarysue.com/price-bitcoin-falls-below-mining/amp/).
I guess bitcoin price may fall but the cost of mining wont! They might just increase the fees of mining and thus cover the cost of mining in most easiest way like that. I guess, it wont matter if the bitcoin is nearing to an end of its supply because we will still need the mining operation to continue because thats what confirms the transaction from the blocks and thus we get our BTC transferred. So either way they will always survive no matter what. If bitcoin price false then it might happen that they will charge too much, may get different difficulty levels and more. So its like everything will be same but more costly for mining stuff.
If you understand simple economics of supply and demand you are very close to understanding bitcoin, now in any business if the production of a good or service is greater than the value generated by the gold or service, it is no longer a sustainable business, in this case, the bitcoin market will crash
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