What happens if bitcoin price falls below the cost of mining it? - page 8.

paxmao

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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.

Yet the opposite is also true, that is, if the price of Bitcoin makes mining "too profitable" then more miners would enter the market until the profit diminishes as is no longer attractive to new entrants. That is why I think that mining is interesting as an speculative way of producing BTC (or any other Alt) with sights set on the future increase in price rather than on the immediate profit.

cryptojac17

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Quote from: noictib on February 28, 2018, 10:16:29 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/).

I don't think there is any big problem happen because there is no chance for the value of the bitcoin to get dump below the value of mining that miners spend .
Here we can see this thing in another way , if the price of the bitcoin get dumped then according to that condition many people will stop to mine bitcoin and than only few people will be available to mine bitcoin at loss and that will result into more and more profit for a particular no. Of miners and that will absolutely results into profit for him .
And also here we can see that many times we seen the dump in bitcoin's market but still we didn't hear anything like this , Because not much impact fall on the miners Because miners are also human they can understand that if they will hold then they can make much better Amount of profit easily .

As a miner s you become part of infrastructure either you

The price will become lower than mining value still many will sacrifice because they will believe that it won't just go down permanently because never in the history of bitcoin that it go down that low, and believe that's bitcoin has a brighter future.

CHENIEN

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As what I have been read a certain article about the news of bitcoin business, that last 2017 bitcoin earn $500 billion, so no need to worry all about, that 80% of bitcoin has already mined, because as what have been stated and written on the news, bitcoin is actually gaining. Hopefully, bitcoin will continue bloom, without any obstacles and hindrances, on their way, to a very long journey.

mel0924

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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/).

For me yes bitcoin can recover anything. Its price and value will rise soon. If you read its historical movement you can predict the price might give in the future. For me I believe its price will surely rise up and will hit to the moon. For now bitcoin is asleep but time comes it will woke up and surprise us.

minthit

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If bitcoin price falls below the cost of mining it, part of the existing miners will exit mining and the difficulty level will be adjusted accordingly. That's awesome!

w33man

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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 was to happen then there would be a lot of people who would give up mining, simply because it is not as profitable as before. As a result, more people would just give up on mining bitcoin, they might result to mining an altcoin which they can treat as their new bitcoin or new source of income. That's how I see it.

noictib

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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 don't think there is any big problem happen because there is no chance for the value of the bitcoin to get dump below the value of mining that miners spend .
Here we can see this thing in another way , if the price of the bitcoin get dumped then according to that condition many people will stop to mine bitcoin and than only few people will be available to mine bitcoin at loss and that will result into more and more profit for a particular no. Of miners and that will absolutely results into profit for him .
And also here we can see that many times we seen the dump in bitcoin's market but still we didn't hear anything like this , Because not much impact fall on the miners Because miners are also human they can understand that if they will hold then they can make much better Amount of profit easily .

VclDm

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Quote from: RudeeTam on February 28, 2018, 09:38:00 PM

The technology of mining is getting better each time and they switch to mining other coins when the difficulty for BTC is high anyway. It's all built in to bitcoin and everything else should be fine.

At that time, the miners will not exploit anymore and bitcoin transactions will be delayed. I think this is very unlikely because the country holds the most bitcoin and there are also many bitcoin-producing farms, especially China that do not want to lose their fortune in this market. Although Bitcoin has been created for a long time, it still has the advantage that new altcoins are not available, so dying can not happen in the next few years.

RudeeTam

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The technology of mining is getting better each time and they switch to mining other coins when the difficulty for BTC is high anyway. It's all built in to bitcoin and everything else should be fine.

Xising

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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 guess people would most likely stop mining it, because it is not feasible enough, I mean the bills spent in paying the power consumption of those mining devices and the expenses for maintenance will not be balanced anymore to it's profit. Therefore, people would most likely quit mining bitcoin and consider mining other types of coins.

aardvark15

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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/).

This could be a major problem, but basically no one would mine it anymore. But that would be a moot point anyway because there would be no need to mine a coin that is worthless. And without miners, transactions could not be performed. Essentially that would be the end of Bitcoin. I don’t think this could happen but it is probably good to be aware of the possibility.

Hui8

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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.

Bravo! Nice answer and I like it the way you explained it. Yes it's true that with decreased prices of the bitcoin the tension on the blocks will reduced down as miners will not be able to cover up the earnings and then keep the miner live.

In addition to this there will be one major indirect factor that will play role in demotivating the miners to exit the field and that is reduced number of investors and also existing investors will pull back from the bitcoin world as the prices drop to couple of dollars. This way GPUiners will benefit lot. You can confirm your own transaction by using your computer power by including the txid. That would be cool.

Pintasak

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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 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 striuggle

September11Myth

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Not only it happened in 2011, but it happened again in 2014, as far as I know. In 2014 I remember to have seem once expensive miners on sale for peanuts on ebay. Miners quit, others keep mining if they have very cheap or free energy. After a while there is a new equilibrium.

Bitcotalk

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Quote from: Polipog on February 02, 2018, 11:08:30 PM

Maybe bitcoin management are looking forward on what future positive results, that's why the price of bitcoin today is going down. Maybe it is only a strategic way by management so that bitcoin will cintinue their smooth flowing operation.

Basically when you are not producing even such profit that can help you to stand out of the lowest line for their manufacturing, then this business need to be dumped. But bitcoins have another case, this is like an exception. They are now decreasing and you can observe it, they have crossed $6k down there. This might be a strategy to cope up with the demand of time, may this would be true.

awawo

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If bitcoin price fall below the cost of mining it will be a great advantage to bitcoin users in the sense that many investors and big players in the mining activities will exist mining bitcoin giving chance to small investors like us to be able to mine bitcoin even with our laptop's because the blocks will be readily available to be harsh easily.

oddwh

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Once this happens, some miners stop mining, this mosltly happens in countries where electricity is more expensive. Then, when the difficulty is re-ajusted and lowered, it's easier again to mine so mining can become profitable again.

Komobit

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There are the energy cost and that depends on each contry and there is the cost of 'computer processing' that you need. If less people mine bitcoin the processing power will decrease and when the algorithm review the dificulty of mining the cost will decrease. So, as others examples above, the market and the system will handle it's balance.

Jake.bluees

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I think it's positive, that this low has appeared because that clears the speculation. This fall is more linked to what happens with Tether and the future market than with anything else. I do not think it's down 80% because it's an established industry. But if it happened it would be a great fraud and lost worldwide for many investors, even companies that have bet on this new technology.

Jlimao28

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Quote from: Tankdestroyer on February 06, 2018, 03:56:12 AM

But what will happen if all bitcoins have been mined? Wouldn't that be very unprofitable for most of the miners out there?

If all bitcoins have been mined probably, miners will make some fees in the transaction for them to earn bitcoins. I think it will become unprofitable from the miners and the user will pay a large amount for their transaction to be processed.

Topic: What happens if bitcoin price falls below the cost of mining it? - page 8. (Read 1481 times)