What happens if bitcoin price falls below the cost of mining it? - page 9.

Tankdestroyer

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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.

But when would we see 1$ price again, If we really did see that price again I would definitely start mining bitcoins and believe that it would generate me a lot of profit in the future. Nevertheless, It is nice to see that satoshi have thought of a solution before vanishing out of nowhere. But what will happen if all bitcoins have been mined? Wouldn't that be very unprofitable for most of the miners out there?

ghost424

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All we can do is hope that it regains its former price and still rise steadily. All the prices are still going down and some platforms are still continuing their programs. Mining is still efficient because you only use part of your CPU to sacrifice so you can gain something in return. If the price falls below the mining value then there will be more miners and wait for the price to rise again.

metenjean

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Logically speaking if the price of the goods you're selling is below the cost of production then you're surely losing money and as good as closing the production facility. But if you're still having faith in bitcoin, i dont think the price of it has falls below the cost of mining, either way you will still gain profits overtime but in the longer timeframe but you double the profits when price double like last month so it was still a win-win solution Grin

AK47-

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See that is the misconception about bitcoin mining. Mining adjusts its difficulty according to the number of miners out there mining bitcoin, it will become less profitable if miners increase. But that would only happen if bitcoin price is very high, therefore mining remains profitable. The number of miners can never be to much unless bitcoin price rises by 50% until bitcoin block size is halved.

13abyknight

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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?

It's not just a matter of safety of already having 'x' percentage of Bitcoin in the existing supply but keeping the block reward in tact with variation in mining power in a situation like this. As a means of backup, difficulty will get readjusted based on the power being generated and block production will be back to an optimal average of 10 minutes per block.
There is almost no economic effect on Bitcoin users except that miners would have to suffice with lesser rewards which isn't too big of deal since they had their honeymoon period when fees were absurdly high.

keykey1

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Quote from: odolvlobo on February 03, 2018, 12:29:28 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/).

It is not an issue at all. All that happens is that the unprofitable miners stop mining. That will cause the difficulty to fall and the rest of the miners can continue making a profit.

It actually happens all the time as the difficulty rises. When the difficulty rises, it gets more expensive to mine. Less efficient miners stop mining and more efficient miners continue.

True. They will stop it. Many miners have already understood that mining of Bitcoin brings less profit that trading and investing (simple holding then) into BTC. The further we go, the less income is gotten from mining.

odolvlobo

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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 is not an issue at all. All that happens is that the unprofitable miners stop mining. That will cause the difficulty to fall and the rest of the miners can continue making a profit.

It actually happens all the time as the difficulty rises. When the difficulty rises, it gets more expensive to mine. Less efficient miners stop mining and more efficient miners continue.

h0lybyte

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That's too good for bitcoin's future if the 80% of coins have already been mined. The scarcity of bitcoins will increase its price very fast because butcoin has a lot of support from all parts of world and the more major economy institutions are now standing on their businesse on blockchain, so keeo buying and holding, the future will be bright

alyssa85

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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/).

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.

Polipog

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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.

Indra32

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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/).

the possibility of investors and bitcoin enthusiasts will race to buy bitcoin for the mine and hope that someday bitcoin prices can skyrocket so they earn a significant profit when the price spike occurs

Bitcoinbelowmine

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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/).

Topic: What happens if bitcoin price falls below the cost of mining it? - page 9. (Read 1452 times)