What happens if the block reward gets to it's minimal or lowest?

Maxre

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Quote from: KiaKia on February 26, 2023, 06:54:07 AM

I believe that the best time to start buying ASIC miners is when the next Bitcoin halving is not very far away.

I said this because I've seen many people did this with both Asics and GPU miners and they later sell their equipment when the next bear market is almost here because equipment starts losing value again, it's like a never ending circle.

My actual question is, what will happen with Bitcoin mining in future? Will this ever head one day? because blocks reward getting shrink every circle must end on day, or am I not getting a part about Bitcoin mining?

I do not know why mostly people repeat these questions and I will say that mining might shrink in late 2030 or even 2040 and at that time we will see what will happen.
My idea is just opposite cause I think that we should focus on holding Bitcoin cause we have very less amount of money and for those who have larger chunks can do it.

Artemis3

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This question comes from time to time, and the simple answer is: From the tx fees. Of course mining will shrink. Bitcoin price compensates this, but not in the exact same proportion. Only time will tell, but my view is that it will continue to be slowly less and less profitable to mine, but this will make some whales leave and the home enthusiasts that don't care to run at a loss, would get some breath.

For the very end in the year 2140, yeah that's a bit... too far.

mikeywith

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Why worry about something that you will likely not live to see? but anyway, you need to keep in mind that as long as bitcoin is worth anything above zero and there is at least 1 person using it, there will always be a value to extract from mining, the blockchain does not need a million miners to run, it could use a single old PC to keep it going, so the profitability of mining will determine the hashrate.

lionheart78

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Quote from: KiaKia on February 26, 2023, 06:54:07 AM

My actual question is, what will happen with Bitcoin mining in future? Will this ever head one day? because blocks reward getting shrink every circle must end on day, or am I not getting a part about Bitcoin mining?

This article [1] from Investopedia tackles what happens when all 21m Bitcoin is mined. It also includes your question so I think you better check the article to fully understand and may have an idea of what will happen in mining in the future.

I believe many of us already know that after the block reward is exhausted or becomes zero, the miners will earn through transaction processing fees. Whether mining is profitable or not depends on the Bitcoin adoption during that year.

[1] https://www.investopedia.com/tech/what-happens-bitcoin-after-21-million-mined/#:~:text=Bitcoin%20mining%20fees%20will%20disappear,block%20rewards%20and%20transaction%20fees.

Coin Gorilla

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Quote from: Charles-Tim on February 26, 2023, 07:28:42 AM

Transaction fee will gradually be replacing the mining reward fee. Any miners that do not see mining bitcoin to be profitable again will not mine again and leave it more profitable for the miners that are still mining.

Does this mean that the fee itself would be soo high that it wouldn't make sense for people to do day-to-day micro-transactions?

Merit.s

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Quote from: KiaKia on February 26, 2023, 06:54:07 AM

My actual question is, what will happen with Bitcoin mining in future? Will this ever head one day? because blocks reward getting shrink every circle must end on day, or am I not getting a part about Bitcoin mining?

Mining fee will be generated from transaction fee,if mining is no longer profitable. As long as bitcoin still exists there must be miners, no matter the challenge in mining bitcoin . There are miners whom the basic factors for mining, like low cost electricity or abundant electricity is not a problem anymore. These miners will last long in mining. Any miner that is not getting profit will pack up leave,it is as simple as that.

joniboini

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Quote from: KiaKia on February 26, 2023, 06:54:07 AM

I believe that the best time to start buying ASIC miners is when the next Bitcoin halving is not very far away.
I said this because I've seen many people did this with both Asics and GPU miners and they later sell their equipment when the next bear market is almost here because equipment starts losing value again, it's like a never ending circle.

I'm not really sure why you said buying when the next halving is not far away is the best time. Are you assuming the profits for the next few months would be massive and allows them to get back their investment so quickly?

As far as I know, there are many factors that can influence your buying decision, including whether you have access to cheap electricity or not. If you do, anytime can be a good time to buy mining rigs. CMIIW.

Quote from: KiaKia on February 26, 2023, 06:54:07 AM

My actual question is, what will happen with Bitcoin mining in future? Will this ever head one day? because blocks reward getting shrink every circle must end on day, or am I not getting a part about Bitcoin mining?

I suggest you search for discussion about block rewards or mining rewards in this sub-board, or Bitcoin discussion. Your worries have been discussed many times before, you might be able to learn something new from those threads. In short, the market will always look for equilibrium. Miners will come and go, difficulty will always change to balance that out.

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Quote from: KiaKia on February 26, 2023, 06:54:07 AM

My actual question is, what will happen with Bitcoin mining in future? Will this ever head one day? because blocks reward getting shrink every circle must end on day, or am I not getting a part about Bitcoin mining?

Bitcoin mining in the future will be still the same but the block reward reduce every blockhalving. Since the value of Bitcoin depends on the demand and supply if the demand is the same and the supply reduces then the value increase but many people know about Bitcoin every blockhalving the demand increase which is why the Bitcoin price skyrocket.
If all Bitcoin were mined miners/participant who still mine will be still be rewarded through miner's fee.

Charles-Tim

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If the price of bitcoin continues to increase as the way it did in the past, there is no problem. Which means there is no problem the adoption continues. Transaction fee will gradually be replacing the mining reward fee. Any miners that do not see mining bitcoin to be profitable again will not mine again and leave it more profitable for the miners that are still mining.

KiaKia

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I believe that the best time to start buying ASIC miners is when the next Bitcoin halving is not very far away.

I said this because I've seen many people did this with both Asics and GPU miners and they later sell their equipment when the next bear market is almost here because equipment starts losing value again, it's like a never ending circle.

My actual question is, what will happen with Bitcoin mining in future? Will this ever head one day? because blocks reward getting shrink every circle must end on day, or am I not getting a part about Bitcoin mining?

Topic: What happens if the block reward gets to it's minimal or lowest? (Read 169 times)