Topic: Will the difficulty of mining keep on going up forever? - page 2. (Read 3767 times)

and of course on price of Bitcoin..

From what I hear its how long it takes for blocks to be solved. So if it takes too long the difficulty will actually go down.

It all depends on what rigs we have and how powerful they become

And this is called detailed and professional explanation. Thank you very much!
I always have problems to explain this details .. Now i will have link to your post like an answer 

The tech will improve until it can no longer.
(more efficient power consumption)
Margins will erode.
Difficulty will stabilize.
Mining will be less sexy.
Mining will be less lucrative.

It is readjusted every 2016 blocks based on the timing between each blocks for the last 2016 blocks and attempt to adjust the timing to 10 minutes. It is possible for the difficulty to go down if a lot of miners get shut down due to the profitability or other factors. If the miners begin to ship or a large farm comes online, the difficulty would rise much higher than normal.

Thanks for the explanation!   

Difficulty will stabilize at a certain price level
The question is when that will occur, in my opinion it might be at the next halving or the one after that where the Bitcoins generated from rewards decrease and the incentive structures decrease as well.
That said if the price keeps rising difficulty will lead the way ahead.

Because more andmore people are mining bitcoin ( mostly big companys )

Well of course there's no answer to it, but the general consensus is that it will until we will reach a point where the increase in hashing is negligible since the price will stabilize. If nothing else it will because we can only produce a finite amount of power from our universe (at least for what we know today).

In simple a difficulty is consequence of rising hash power. So when no new mining devices will be connected to network, diff. could stay.

No, eventually an equilibrium will be reached at a level that will make the network reasonably immune agaisnt a 51% attack

Mining difficulty is determined by the amount of time it takes to solve 2016 blocks. Every 2016 blocks, the nodes calculate how long it took since the previous adjustment.

If it took less than 20160 minutes, then the blocks are coming too fast (faster than an average of one every 10 minutes). The nodes then increase the difficulty by the same percentage as the excess speed. This increase in difficulty makes it so that if there is no additional hash power added to the network, the next 2016 blocks will take 20160 minutes.

If it took more than 20160 minutes, then the blocks aren't coming fast enough (slower than an average of one every 10 minutes).  The nodes then decrease the difficulty by the same percentage as the missing speed.  This decrease in difficulty makes it so that if there is no additional hash power added to the network, the next 2016 blocks will take 20160 minutes.

Since miners are always trying to increase their income, they keep adding hash power to the network.  This increase in hash power speeds up the blocks and causes the next adjustment to increase the difficulty.  Eventually it will reach a point where the miners are spending more on hash power than they are earning from mining.  At that point mining is no longer profitable for those who have the highest expenses per hash.  Many of them will shut down their equipment, which will reduce total hash power on the network and difficulty will drop.  This could happen in a few months, or it may not happen for a few decades.  Regardless, when it does happen, the difficulty will increase and decrease as miners add and remove hardware to try to maintain profitability.  Eventually an equilibrium will be reached, at which time difficulty will slowly increase in response to incremental advancements in technology leading to cheaper hashing.

Really? Seems to be profitable for some people. Maybe it depends on the right rig.  

Mining hasn't been profitable for the vast majority, for a long time...

If you are a BTC miner, you will have to keep on buying more tech to keep up with the rise in the difficulty? Also does it always go up by a certain percentage? Or just by random? If its by random, how is it selected? I would like to see what your answers are.