Topic: Would it still be profitable if bitcoin goes down to $1 a bitcoin? (Read 1801 times)

I dont think it would be profitable anymore,
But thats why it can never reach such a price anymore.
The cost to mine them is to much, so less people will sell bitcoins.
Because they will sell at a loss otherwise.

If this change in price happens very fast, maybe miners don't notice it before the next difficulty change.
Miners turn of their equipment but there are only a few blocks left till difficulty change.
This is also a possible senario.

Everyone would do that and you can turn back on after difficulty adjusted ..

I could argue that you're trying to be rude, but I'd rather continue the discussion in a sane manner.

Some people prefer mining over trading. Maybe not you but some do. They don't want to go through all that KYC bullshit. They also don't trust exchanges with their BTC, you don't know when you can be Goxed. Mining keeps your BTC with you without being seen by government.

If you bothered to read the whole thing you would see that was covered as well.

Apologies kthejung, I see you weren't talking to me.

great job of unnecessarily exploiting a different angle.  If there was a reason to mine rather than buy at $1, then the difficulty would go back up and therefore this whole made-up scenario is senseless; as it always was.

Lets take a miner with a single Antminer S1 - 180 Ghs who decides to continue mining even though its only $1 USD per BTC. Also keep in mind the price would probably decline to $1, not just go from $440 to $1 in one day and stay there forever.

Current Difficulty: 8,853,416,309
Current BTC per day: 0.01022
Current BTC USD$: 400 ( is more, but $400 for this exercise )
Income for this miner in USD$: $4.00

As other mining operations shutdown - go bust, the difficulty and network hashrates and difficulty would plummet at first, then taper off gradually dropping, but the BTC mined per day would react to the balance between the difficulty and may counter balance the drop in $$$ value.

So lets half the stats:

Difficulty: 4,426,708,154
BTC per day: 0.02044
BTC USD$: 200
Income for this miner in USD$: $4.00

Half it again:
Difficulty: 2,213,354,077
BTC per day: 0.04088
BTC USD$: 100
Income for this miner in USD$: $4.00

This time, divide by 10
Difficulty: 221335407
BTC per day: 0.4088
BTC USD$: 10
Income for this miner in USD$: $4.00

And divide by 10 once more to get $1
Difficulty: 22,133,540
BTC per day: 4.088
BTC USD$: 1
Income for this miner in USD$: $4.00

The point for miners is, its not the value in $USD per BTC, but the mining hashrate to difficulty balance, that matters.

If for example this ficticious event happens at $1 where difficulty drops to a million:
Difficulty: 1,000,000
BTC per day: 90.47
BTC USD$: 1
Income for this miner in USD$: $90.47

So you can see that as long as mining continued, blocks would continue to be discovered and at a faster rate but would be worth less in the conversion to cash. Transactions would still take place, although probably take longer to process. etc etc.

And as things go, if this last event did happen, miners who had exited the game would turn their miners back on again until the difficulty went up sufficient enough for them to be earning ( in the case of the Antminer S1 ), $4.00 a day again.

By no means a perfect example, but just a scenario and how it could pan out.

The 2048 blocks still have to be solved at high difficulty before a readjustment, regardless of how many miners turn off their rigs. If enough miners shut down due to lack of fiat income, the readjustment could go from weeks to months to years as the block times get longer and longer (and confirmation times also get VERY long, essentially killing the coin).

At $1 price, many miners would have turned off their rigs and the difficulty would drop, so you'd make much more BTC than 0.09 by mining.

If bitcoins were $1:  I could either pay the electric company $10 a day to run my miners to generate 0.09 btc per day or just buy 10 btc for $10. 

I could have 10 bitcoins by buying or 0.09 bitcoins by mining.  Of course, the obvious choice is buying.

Definitely no. As there would be no point in mining. You would pay more for electricity to keep your computers working. There's no profit in such approach. Then, what would be the difference between USD and BTC?

This is what makes Bitcoin so insanely revolutionary. It is self-regulating backed by maths, the language of the universe.

Yes cause everybody in the world would shut down their mining rig. After the difficulty adjusted the difficulty would be 0. So instants mine.

"Deep pocket" is relative to the size of the mining operation. My discretionary income can support the operating costs of my small my mining operation indefinitely. I will continue to throw money down the toilet if I felt that it would be beneficial to do for the long term.

Not necessarily. They may be leveraged, operating on borrowed money.

"deep pocket players" might declare bankruptcy, but they will last longer than you. If bitcoin goes down to $1, ants like you and me will lose, and deep pockets will win.

Even if BTC drops to $200 many miners would go bust. It will also happen if BTC remain <$500 and difficulty continues to increase.
Only those with cheap electricity and efficient hardware will survive.

Your Antminer S1 will be good for heating and for decoration but not much more.

If BTC goes down to $1, mining hardware would be dirt-cheap. You would probably find a block with a USB erupter.

Only way to find out who truly believe in crypto against the ones in it for the money.

Hells no! 

Difficulty still in the billions, and electricity costs sky high for expensive miners.

$1 value of Bitcoin would not pay the bills or mining costs.