What happens if bitcoin price falls below the cost of mining it? - page 6.

zhekinsp

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Quote from: wdnj on June 03, 2018, 06:02:06 AM

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/).

Bitcoin price is very unpredictable and as the percent of coins are getting higher the miner will get less and it is not good for them.

As we know miners are helping bitcoin transfer to be better.

But we dont need to be afraid as the lightning network will cover it for us. SOON!

But if the miners stop supporting the bitcoin transaction then it may leads to increase the transaction fee but most of the miners now understand that they can earn lot more holding them that is why they are keep supporting even the price falls but it will be a bad situation id the price falls below the mining cost,they hae no more reason to mine.

wdnj

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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/).

Bitcoin price is very unpredictable and as the percent of coins are getting higher the miner will get less and it is not good for them.

As we know miners are helping bitcoin transfer to be better.

But we dont need to be afraid as the lightning network will cover it for us. SOON!

tbterryboy

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Quote from: pinkflower on March 21, 2018, 09:57:35 PM

Quote from: alyssa85 on March 21, 2018, 07:56:46 AM

Quote from: pinkflower on March 20, 2018, 11:12:18 PM

Wouldnt that be a threat to a manufacturer like Bitmain? I think it is in their interest to pump BTC than give up and lose their billion dollar company. I know this is shocking, but Bitmain is already earning billions from ASIC miners.

We have seen this kind of pump done by them during the halving of mining rewards.

Yes - though Bitmain is insulated by the fact there are now so many bitcoin forks for miners to mine - bitcoincash, bitcoingold, etc etc.

But its in the best interest of every ASIC miner involved in cryptocurrencies for BTC to succeed. If it falls it will take every coin with it. Thats why I do not know why some altcoiners are so quick to indicate faults in BTC.

This is not a fault on the part of bitcoin if rest of all toddling currencies are dependent on it. The thing is they are new to the world and bitcoin was there when no other currency was in the market. Bitcoin can never ever be beaten by any coin from the community of altcoins because of the immense support bitcoin is getting throughout the world. Altcoiners should stay realistic and stop blaming bitcoin.

logicgate

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Quote from: stellgod on March 23, 2018, 05:59:07 AM

Quote from: mu_enrico on March 20, 2018, 10:45:14 AM

Then miner will sold their mining equipment, it happened before

The drop in hashrate will make mining profitable again, and the cycle goes

There are maximum chances for this to happen yes. Because when you are on something and trying to make it work and ultimately your profits are running away from you. Plus the prices for that coin are going down and even your mining basic payments are not fulfilled so how can you continue? Definitely if I would be at such place, I will surely think of getting out of this mining thing.

Bitcoin mining is not going to stop anyway. As you said, mining companies great role in the pumping and dumping of the prices. We all know that these companies or agencies are earning countless money from this process. I am pretty sure that the mining of bitcoin will keep going on and the prices will no way go down the cost of bitcoin ever. Bitcoin is still strong enough to stay at a price higher than mining charges.

stellgod

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Quote from: mu_enrico on March 20, 2018, 10:45:14 AM

Then miner will sold their mining equipment, it happened before

The drop in hashrate will make mining profitable again, and the cycle goes

There are maximum chances for this to happen yes. Because when you are on something and trying to make it work and ultimately your profits are running away from you. Plus the prices for that coin are going down and even your mining basic payments are not fulfilled so how can you continue? Definitely if I would be at such place, I will surely think of getting out of this mining thing.

pinkflower

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Quote from: alyssa85 on March 21, 2018, 07:56:46 AM

Quote from: pinkflower on March 20, 2018, 11:12:18 PM

Wouldnt that be a threat to a manufacturer like Bitmain? I think it is in their interest to pump BTC than give up and lose their billion dollar company. I know this is shocking, but Bitmain is already earning billions from ASIC miners.

We have seen this kind of pump done by them during the halving of mining rewards.

Yes - though Bitmain is insulated by the fact there are now so many bitcoin forks for miners to mine - bitcoincash, bitcoingold, etc etc.

But its in the best interest of every ASIC miner involved in cryptocurrencies for BTC to succeed. If it falls it will take every coin with it. Thats why I do not know why some altcoiners are so quick to indicate faults in BTC.

Sled

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I think that people will no longer choose to mine it and instead of buying mining tools or rigs then they will just buy directly it. The price of bitcoin is not always going up so i think that in the future, the price of bitcoin might have some huge downfall and it might reach where the price is just like from the past few years like $2,000.

AsianNapoleon

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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/).

Bitcoin will go to at least $50k this year

alyssa85

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Quote from: pinkflower on March 20, 2018, 11:12:18 PM

Wouldnt that be a threat to a manufacturer like Bitmain? I think it is in their interest to pump BTC than give up and lose their billion dollar company. I know this is shocking, but Bitmain is already earning billions from ASIC miners.

We have seen this kind of pump done by them during the halving of mining rewards.

Yes - though Bitmain is insulated by the fact there are now so many bitcoin forks for miners to mine - bitcoincash, bitcoingold, etc etc.

keycellko

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I think there's no problem with that. Come to think of it, when it all began the price of bitcoin is not this high. But miners were able to compensate their cost for mining. And come to think of it, it is actually positive if incase mining stops. It means the amount of bitcoin circulating will be stabilized but the people wanting to buy bitcoin will increase thus increasing the value of bitcoin as well.

pinkflower

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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.

Wouldnt that be a threat to a manufacturer like Bitmain? I think it is in their interest to pump BTC than give up and lose their billion dollar company. I know this is shocking, but Bitmain is already earning billions from ASIC miners.

We have seen this kind of pump done by them during the halving of mining rewards.

Garret44eza

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I think miners will stop the mining till all the bitcoins remaining get used up and wait to see if the situation uplift or not. May be.

EtherATM

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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/).

Of course, if Bitcoin price falls below the cost of mining then all miner will stop mining Bitcoin, this will do transaction fees go up. But i remember that Satoshi Nakamoto seem had calculated this, after 2400 blocks, the difficulty will adjust down, that means it's easier to mine Bitcoin and the cost to mine a Bitcoin will lower than the price of a Bitcoin and this will promote miners continue mining Bitcoin.

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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 will happen the same that happens to all businesses, if miners are operating for a loss they have two options, one is to mine another cryptocurrency and obtain profits that way and two is to go bankrupt being bought by another miner and then only the most efficient miners remain, this is the survival of the fittest at its best, also after two weeks the hash rate will go down and then the difficulty will adjust, it will get lower allowing the miners to be profitable again, so as you can see satoshi was really a genius because he thought that far ahead.

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Quote from: mu_enrico on March 20, 2018, 10:45:14 AM

Then miner will sold their mining equipment, it happened before

The drop in hashrate will make mining profitable again, and the cycle goes

Nope, they will not sell their hardware. They will simply switch it off until the difficulty has adjusted enough to make it

profitable to mine again. Why would you sell hardware, if you know what might happen in the future. The miners will also

switch from one Alt coin to the next to find the most profitable coin to mine. {Like they did with BCash a while ago} Roll Eyes

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Then miner will sold their mining equipment, it happened before

The drop in hashrate will make mining profitable again, and the cycle goes

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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 it is true that there will be a decline in prices to fall below the cost of mining, inevitably must stop mining, if seen from the development of bitcoin is currently very interested in the number one cryptocurrency in the world, certainly Many people who participate to invest some money for bitcoin, it's about the policy issue of every country that has not found the bright spot of bitcoin legality.
when bitcoin gets the trust and legality of the country there will be price increases every year.

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The price of bitcoin will recover slowly and we can't predict when this takes place. The time period varies, based on the growth that we experienced by the month of December now we could have crossed $25k. We're staying below $10k,upon this I believe that the market is unpredictable. At any instance it won't go low to the cost of mining, because such a situation will surely lead to the destruction.

fiulpro

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It will break down..for sure and off course it's not safe..!
It will break down like tulip and..then thereafter ... It won't be able to recover..till a big.. whale invests in it ..

Bitcoins is alive because of investors .. thus if there won't be any more fluctuations and it will die because if the supply of Bitcoins stops and price goes down. That much there won't be anyone who will..be willing to.. invest.

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In this process miners will get Bitcoin to solve the equation. But if the costs incurred are higher than the income from mining activities, then the miners will lose the incentive.

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