more miners will give up,
currently mining bitcoin is only profitable in china, and icleand on an industrial scale, bitcoin isnt even the coin of the small guys anymore its the coin of the big miner boys now.
Topic: What happens when the price of Bitcoin falls below the cost of mining? (Read 16845 times)
December 17, 2018, 01:06:07 AM
December 17, 2018, 12:44:50 AM
then mining will die as it did today, bitcoin has dropped below mining costs and many miners have sold their mining tools. and I think the remaining total bitcoin supply will remain intact.
Hey, check statistics (https://www.blockchain.com/explorer) and no mining dies. even when bitcoin has mined a total of 21 million mining systems will remain alive. The strength of bitcoin will be in the mining system unless there is a fairer transaction confirmation method in the future. Don't count on it.
On the Instability of Bitcoin Without the Block Reward
http://randomwalker.info/publications/mining_CCS.pdf
26 page read, explaining why btc is toast without block rewards.
December 17, 2018, 12:20:50 AM
then mining will die as it did today, bitcoin has dropped below mining costs and many miners have sold their mining tools. and I think the remaining total bitcoin supply will remain intact.
Hey, check statistics (https://www.blockchain.com/explorer) and no mining dies. even when bitcoin has mined a total of 21 million mining systems will remain alive. The strength of bitcoin will be in the mining system unless there is a fairer transaction confirmation method in the future. December 16, 2018, 11:25:28 PM
i see they still hopt BTC rise up. but i think the end is coming. we have to face with it
December 16, 2018, 11:07:21 PM
Some miners will stop mining, so Bitcoin mining difficulty will decrease, and it will bring some new miners.
December 16, 2018, 08:38:23 PM
then mining will die as it did today, bitcoin has dropped below mining costs and many miners have sold their mining tools. and I think the remaining total bitcoin supply will remain intact.
December 16, 2018, 08:26:56 PM
Since there are people with free electricity there will always be someone who will be able to profit through mining.
Just those who pay for power will have hard times.
Just those who pay for power will have hard times.
Who are these people with Free Electricity?
December 16, 2018, 08:24:05 PM
Since there are people with free electricity there will always be someone who will be able to profit through mining.
Just those who pay for power will have hard times.
Just those who pay for power will have hard times.
December 16, 2018, 08:23:51 PM
So, I was thinking, for the long term, even if Bitcoin goes below USD 6000, no worries, 5000, 4000, much the same. Hodl for the long run.
But, the vitality of Bitcoin is maintained by the continuous mining of Bitcoin. On an average these mining costs are USD 3000 to 3500 approximately. So, what happens when Bitcoin falls to that level?
Maybe the mining rigs won't mind bearing losses for a few months if they sense an upside later on. But, what if they don't, and start bailing out?
In that case, USD 3000 or whatever the lowest cost of mining Bitcoin will effectively become the null point.
If Bitcoin falls to that point, downwards beyond that is a steep vertical cliff wall, and an inevitable fall to Zero.
But, the vitality of Bitcoin is maintained by the continuous mining of Bitcoin. On an average these mining costs are USD 3000 to 3500 approximately. So, what happens when Bitcoin falls to that level?
Maybe the mining rigs won't mind bearing losses for a few months if they sense an upside later on. But, what if they don't, and start bailing out?
In that case, USD 3000 or whatever the lowest cost of mining Bitcoin will effectively become the null point.
If Bitcoin falls to that point, downwards beyond that is a steep vertical cliff wall, and an inevitable fall to Zero.
Additions to your Point.
If Bitcoin falls to that point, downwards beyond that is a steep vertical cliff wall,
Next HashRate Drops * Currently happening *
Next 51% Attack
Then a Network Death Spiral , No BTC can be moved
Then an inevitable fall to Zero.
December 16, 2018, 08:20:56 PM
i think the miners will stop mining bitcoin, and then all bitcoin amount will not mined and it will mined after the price of bitcoin increase more than the mining cost
December 16, 2018, 08:18:03 PM
for the country with cheap electricity prices, it might still be able to run at a price of 3k USD, but for countries with electricity prices above 0.2 USD, they are certainly better off closing their services, because it is no longer profitable
there must be a balance between the price of bitcoin and the price of electricity so that mining can be carried out fairly
IMO, the fair price for bitcoin is 6k USD so that miners still get commissions that are in accordance with their work
there must be a balance between the price of bitcoin and the price of electricity so that mining can be carried out fairly
IMO, the fair price for bitcoin is 6k USD so that miners still get commissions that are in accordance with their work
December 16, 2018, 08:08:52 PM
People will simply stop mining until it is profitable again and no doubt people who have access to free or extremely cheap electric will continue to mine so it will not stop completely and as others have pointed out it is a self correcting system so the difficulty will reduce to make it attractive to mine.
Its true, i am believe miners like others bussinessman. They will calculate the cost and the bitcoin price and if the price below production cost, they will shutdown the production until the price getting better.
December 16, 2018, 06:23:11 PM
People will simply stop mining until it is profitable again and no doubt people who have access to free or extremely cheap electric will continue to mine so it will not stop completely and as others have pointed out it is a self correcting system so the difficulty will reduce to make it attractive to mine.
December 16, 2018, 01:17:44 PM
Whenever the price of bitcoin falls far below the cost of mining, then the miners get discouraged and leave bitcoin mining. The cost at which to mine bitcoin with electricity has been so so exorbitant and these has to be look into. Most miners sells there mining equipment and get a rest from mining for some time.
October 03, 2018, 03:02:42 AM
Surely you will not profit on that if the bitcoin price drops below the cost of extraction. As bitcoin continues to fall below the cost of mining, output will be less and bitcoin traffic will slow to reach maximum supply. Lets say there are quite a large number on some of them, then those who continue to tap will get more profit because of those who stop mining.
September 18, 2018, 09:24:19 AM
I would to say that all bitcoin miners are not normal individuals and mostly they are big mining farms. So they would not mind such decline in prices.Such mining farms have already earned tremendous income from bitcoin mining and so they actually know it's potential.So they would not take such a foolish decision of quitting bitcoin mining.
September 18, 2018, 08:56:55 AM
I think mining costs will adjust according to the current price of bitcoin, when the price rises that happens is there will be more people who want to mine which makes the difficulty increase. Conversely, if prices continue to fall, many miners will stop mining, difficulties will come down and the cost for me will also decrease.
September 18, 2018, 08:46:54 AM
We must consider the fact that Bitcoin mining is not the casual part-time activity. It is a serious business and we should leave it for them who treat with that proficiency. When it comes to the business, not every day is a sunny day and hence the business should have long-term vision and mission with the strategies. Specifically in the case of mining, one should consider returns on a longer time period if he is expecting sustainable profit from it.
September 18, 2018, 08:02:37 AM
The first one who will be affected by this was the Bitcoin miners , and then everybody who is under of crypto system . As of today there are lots of post about the panic they experienced when this fall happen it will be doubled , and there will some who will give up .
September 18, 2018, 07:39:39 AM
Till the date bitcoins have value - mining will be profitable. There will be just less miners that will produce less hashpower, which means that bitcoin transactions will be secured by less "proof of work" and cost of mining will be getting lower per GHS because of the technolo9gy advancements. Faster ASIC chips and lower power consumption. So, always there will be a reward for miner.
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