Bitcoin Forum

At the moment the miners for a block are awarded 12.5 BTC. Every 4 years this value will fall by half. For example, let's imagine that the prize value is 1.5 BTC for each block and that BTC's value against the dollar does not increase. In such a case, mining will not be very profitable.

At the same time, miners are also benefiting from the value of the fee. This time the fee values will increase. Then people will have to pay a high fee for bitcoin transfer. The biggest advantage of the Bitcoin system against banking systems was that they could shop without paying commissions to any brokerage house. If this happens, can bitcoin preference be reduced?

No really, only the BTC reward will be lowered but the BTC price will increase due to the law of supply and demand, less BTC less supply more demand, high prices.

Price will increase once rewards go down. As now each BTC is worth more and harder to mine. If minning stops difficulty drops, that way minning should be profitable all the time.

bitcoin will never end, there will always be someone who is going to use it.

also if reward drops, fees can be increased to cover the reward. also the price is rising pretty good and price has been covering the reward half even more than enough.

If all goes according to plan the block reward will be replaced by fees.


Bitcoins biggest advantage is that its trustless. Anyway the plan is that more transactions will be included per block thus the total reward from fees will increase without the need for the fee per transaction to increase (significantly).


Can you rephrase that?

Well. This catch my interest. Im wandering what will happen to bitcoin after 4 years or more? The reward on mining gets lower and lower due to bitcoin halving. I think may miners will stop mining because its getting harder and its not profitable anymore. And this could kill the mining industry. Im sure the price will increase. But what if we reacha the point that we cannot mine anymore? Can this be the end?

If we see the recent bitcoin situation, nowadays bitcoin have increased the popularity, more people interested to bitcoin, so the demands will increased when the supply decrease, then the price will increased.

If the miners have stopped their mining activity, the difficult will decreased, and there are the people who take benefit to still in mining activity, and he's will become solo miner with a lot profit. That's why mining industry nowadays more competitive.

That's the point I want to mention. The fee will increase when the price value decreases. This time, people using bitcoin may give up using BTC because of the high fee value.

Interesting question. I don’t think bitcoin will destroy if mining difficulty increases because there will be transaction fees to compensate the loss of not mining. Alternatively, even satoshi has stated that in next 20 years, there will be too many transactions or no transaction at all so miners will earn little amount from each transaction and hence they won’t suffer loss.

That's what I want to say: If the scenarios I mentioned above happen, can people use bitcoin less? So people may not prefer to use bitcoin.

How low do you want the fees to be? The fees are currently about $0.5, as compared to most payment processors which can go upwards of $2 and are significantly slower.

Anyway, even if the fees were not to increase, the electricity costs would likely reduce. Those smaller players would exit the market and the bigger miners would earn more fees for their farm. In a hundred years, Bitcoin transactions could potentially have a bigger userbase and the block size would probably increase a lot. That would give more fees to the miner for each block.

I wonder it too. but there is still the so-called fees. I think miners also get some profit from the fees. but lower reward is affected too. however, as long as bitcoin price increase, fees will increase too even the profit may be lower than before. probably a few miners will stop mIning because of that. so , bitcoin will still exist, IMO.

Yeah. There is no such loss on mining. Even though the difficulty mades harder, all btc miners is always updating and keep adapting on the difficulty of bitcoin so that miners will have profit. There is a solution in every problem. Just trust the devs of miners and keep mining bitcoin

I don't think so. when the mining reward decreases and the supply source of bitcoin will be less well, The price must be higher due to the law of demand  and supply or  the transaction fees must increase highly and Bitcoin must be alive.

As quoted by most users the decreased supply to the increased demand will make the price to sustain without falling beyond limits. To overcome such issues alternate solution gets emerged or will be initiated by the developers who play big role in the long lasting of bitcoin.

Mining profits or reward has nothing to do with bitcoin being popular and will never change anything for the largest mining companies, they will always get their profits, this is something proven by time and even though halving happens only crazy thing is the race between miners and them adding mining machines day after day and I think this was intended by satoshi to make people actually do hard works to earn bitcoin to make it more fair whether big or small you need to consume electricity and resources, so for those people thinking bitcoin comes out of the thin air should think again.

If miners stop mining then the difficulty will fall and the worst case scenario is that anyone can mine even on the laptops. I don't see this happening as there are many dedicated miners out there trying to get the best hardware available to make mining energy efficient as well as mining competitive. People mine bitcoin and other altcoins based on the expectations that their value will sky rocket in future and hence they take a loss for now.

Yes, That's correct , Guy. Once the bitcoin rewards decrease, Bitcoin price must increase then some big miners will import many big mining machines with lower costs or supercomputers will appear to settle this issue.

You already answered your own question, Like what you had mentioned the only thing that will not be profitable is the mining only not the bitcoin itself instead the price value of bitcoinBTC will get more higher and many of the community for sure will buy more of it.

When mining reward will be lowered down, it will limit the supply of bitcoin which can boost price per bitcoin so mining will be profitable even with low block reward. Also in future efficiency of mining hardware will be high which will minimize the cost of running mining hardware.

Fee bitcoin may have in future will be still far lower than traditional centralized payment processors so bitcoin will be preferred due to low fee on that time. Also bitcoin have many advantages over other payment processors beside low transaction fee, i think demand will keep on increasing for bitcoin rather than getting lowered down.

Bitcoin is real invention of this century and also prepared with proper precautions. We must have to admire developer of Bitcoins because they have already predicted everything considering future of Bitcoin.

As we know after every 4 year Bitcoin halving occur. Which directly impact to price of reward after solving block. Bitcoin mining will be held till 2145. And I think Bitcoin mining will be there till mine last Bitcoin.

And till that time price of Bitcoin will be skyrocket.

It simply means that the ones we have will now be contested for and the value of Bitcoin will therefore increase significantly but at the same same it will come with its own disadvantages in the sense that when the price becomes un-affordable then I see other Alts lining up to take its place which in the long run might eventually makes bitcoin worthless when nobody is asking for it...

Miners that are there for mining profits will leave but some who do it to acquire bitcoin will stay. Profitability in mining, considers the cost of production especially electricity to validate the profit level

I am not saying that i do not agree with your idea, but your logic has a flaw. the amount of Bitcoin is constantly rising. Unless we destroy the same amount constantly, then the supply is growing. The rate at which the supply is growing is getting smaller, but the overall supply is still rising. So for the price to rise you have to generate a bigger demand. Constantly. 

The value will rise, because miners sell their coins at some price. Considering that new people are entering frequently and let's say that they buy the bitcoins available for cheap, more and more you will rise until you hit miners' bitcoins. This is the case where the market would be forced to adjust to a greater price, but you know, the natural growth of the users if for me enough to keep the most competitive mining facilities profitable.

We will know about it in 12 years later when the reward is 1.5 BTCitcoin for every block.
The price should be increasing, especially in 12 years as the supply always decrease.
If the price increase $400/year than it will be great, around $5000/BTC1.


The fees will cover all of costs and profits for the miners as you said. People will pay same amount of but the value of bitcoin is higher than nowadays, well it consider high fee. Only time will tell, we just predict it that way.

Thats true fees will be replacing the blocks rewards in the future, that isnt new at all, at the next 20 years i expect bitcoin to reach atleast 2000-3000 dolllars, if the halving will happen every 4 years we will reach the moment that the fees should be bigger then the block reward. We wont be alive atleast the big part of us when the last bitcoin will be full mined, but before that fees will be already the best and main reward at bitcoin, something around 2036.

Mining end in the year 2140 so in my opinion is the last thing we should worry about as I am pretty sure we will all be dead and forgotten at that year 2140.

As others have already said then it would depend on transaction fees and also bitcoin will not end but it will be extra expensive as there will be only this amount of bitcoin in circulation(21mln coins) and if people by then decide not to sell than the price should only go up.

Along with that fact we can also say that with the passage of time the remaining coins will reduce in umber and one day all of the coins will be mined and with the limited number of bitcoin its price will be much higher and the miners will rely on the fees of transaction which is also good in amount.

I do not think that bitcoin will end when mining profitability decrease.  As long as there is profits, people (Bitcoin miner) will mine Bitcoin.  Even if Bitcoin mining is not profitable, people will stop mining but I would say not all will stop.  This will lessen the hashing power of Bitcoin but will lessen the difficulty after the next block.  Balancing its system of Hashing Power and difficulty and then afterwards profitability.

I think they are balance the profit and fees for those who are mining bitcoin.. and i think it will not end bitcoin because of the block rewards are decreases every 4 years or block halving.. the price of bitcoin is always depends in the supply and demand so if our block rewards are decrease i am sure that the price could be rise that can increase your profit or it can be still balance because of the price increases.
Its impossible that the price will not increase and mining will not profitable. if the difficulty is increased i think your mine coins daily will be deacreses but the price bitcoin could be increase because bitcoin is in demand and many companies right now are using it. .

I also think that bitcoin mining profitability have the capability to balance itself.  As long as there is demand for bitcoin, mining will always be profitable at the end after all the adjustment of difficulty.  It was just now I realized how great is the design of bitcoin ecosystem.

The first thing if you are smart its obvious that its still profitable if bitcoin mining is not profitable many business miner will stop to mine bitcoin instead better to go in other coins to mine and profitable.. that can affect bitcoin difficulty to be low and i think the transaction also will be slow because of miners stop mining bitcoin due to bitcoin mining is not profitable..
That is why there is block halving they are helping miners that bitcoin could be profitable and increase more the value of bitcoin the more the price was increase the more bitcoin mining to be profitable.. unless if you are paying a large electricity in you country it cant profitable..
The minimum electricity cost that i think profitable is below 10 cents..

To my point of view when the reward of mining is not sufficient miners not only cover their expenses but to have a profit too then:
1. First will increase the fees. Even nowadays bitcoin is not the proper way for micropayment transactions. May be if consensus achieved other ways like lightning networks will arise.
2. Secondly some of them (miners) may mine other alt-coins. Of course bitcoin is the leader but some of them are promising too.

After the genesis block (8 years) so many things happened in bitcoin ecosystem. Imo the moment the reward of mining blocks will not satisfy the miners is far way, so there is no reason to worry about

not really. Bitcoin reward maybe decrease but bitcoin price will increase. It's why bitcoin price always increase year by year

Or bitcoin price decrease, mining profitability decrease, miner decrease, difficulty decrease, power use in mining will also decrease, making mining profitability increase.  It is a cycle.  Each sector will adopt to the changes of each sector.  The only thing that will stop bitcoin is when the demand of people to have bitcoin stop.

No I do not think that it will than end because this already happened multiple times So mostly likely it will stay like this even without it.

Nowdays mining isn't dead and it's profitable for big companies but your question seems very serious. If after many halvings, fee will be increased and also at the same time bitcoin's price will increase also, than it won't be preferable payment system and mostly bitcoin payment won't be so comfortable but hope that won't happen by that way. While mining hardwares can mine without any big problems and there is RIO in one year, it's price won't be so highly risen and while time goes, technic is developing and there are less risks of unprofitable mining in future.

Exactly as long as the demand of people to have bitcoin is exist then bitcoin will never end, like people said the price will be increase due to the mining reward will be lowered down so that mining will be profitable, but actually i'm wondering about what if all the bitcoins in this world have been mined, will bitcoin mining be profitable? after all the 21 Bitcoins have been mined? since there will never be any new bitcoins for miner to verify.

If someone stops mining, then the difficulty goes down, this means the ones that are still mining get a benefit from continuing mining. So if someone leaves, the system automatically self regulates in a way that it creates an incentive for the rest of people to keep mining and for other people to join in as the difficulty goes down. There is always profit to be made by mining BTC.

That's why we need the blocksize increase. But are the fees depending on the miner's reward? I mean we pay someone for securing something for us. But it's also meaning the fees will increase with insignificantly.

When there are ZERO rewards , the Fee Prices will be so high, people will move to other coins with cheaper fees and BTC will Die.


 8)

Basically bit coin is made up with proper programming which have done with considering future requirement. Already many things were predicted about Bitcoin environment which are really sustainable as well as complementary. Bitcoin is really invention made up of this century.

And as already predicted price of Bitcoin in future can give good return on investment with mining of Bitcoin. Even halving if decrease price of block reward, Still price matter. Because increasing price of Bitcoin giving returns to miners. And in future if reward decreases as per prediction still miner will be profitable if they have high end mining hardwares.

You are assuming that bitcoin will be the primnary cryptocurrency and that there will always be demand. But it's possible that as fees rise, people switch to another cryptocurrency and bitcoin collapses.

Nothing is guaranteed in this space.

There is no way that bitcoin will end with just a decrease in mining profit. It will continue but the confirmation will take a very long time. The users will pay huge fee just to get the transaction done in time. But let us say a miner will stop mining because it is no longer profitable what will happen next, a new miner with a good hardware will replace the old miner and the cycle will continue. New mining hardware, new technology will just come out to solve the problem on difficulty, electricity and others.

when there will be no bitcoin remain to mine then the price of bitcoin will increase much more. because the demand will increase and the supply will decrease, therefore i think people will offer more high price for buying bitcoin.

Well, that probably the possible scenario and also, I think sending charges will definite increase All is just a speculation but theres a posibility to happen.

Bitcoin is not threatened I think if mining profits decreased,but if another coin can addressed the some issues which bitcoin encounter  like for eg in speed etc then its a game changer.

It is thoughtful to know that it will end in 2140,beside it is a proposed date. Mining of new bitcoin can end but mining to gain transaction fee continues, due the infinity block of network more so this process is also rewarded.

In about 20 year the mining reward will be under half a Bitcoin. To make the same Bitcoin would need to have a price of almost $30000. Transaction fees will overcome the mining reward even sooner. So this will be a problem (or not) sooner then one might think.

You question is no much complicated because , If mining reward will became low or stop then it is sure that a new rule will come into play to earn bitcoin by supporting mining .
Because if mining reward decrease or stop then the system of bitcoin transaction will stop , so to make bitcoin and its transaction live the bitcoin system will provide additional reward .
So don't worry  , if you can than make mining ;)

Just see what happen after the recent halving and the effect until now that it's proven the price is rising if you compare with the price before halving. I think that if the mining rewards always goes low, the rate of bitcoin will be increasing and it's will be a fair amount of reward equivalent to fiat for those miners to fulfil their needs of mining such as electricity or maintenance and give them some profit out of it.
This problem will be sorted out by the time.

Well, if this is proven, then we all should sell our houses and cars and even take a loan or two and invest it all in Bitcoin. Just wait a few year and we are rich Gentleman. Great!

I only have a basic understanding of this but the creator wanted it to be a finite resource like gold. So even if the btc reward gets smaller over time, the value of btc is still increasing so there are still incentives for miners to do their thing. When all bitcoin has been mined out they'd be mostly receiving their income from the transaction fees (which would also become higher by that time).

perhaps so. value of bitcoin goes so high that transaction fees may reach $10. this is still worth for miners to continue making money even after another halving. 6.25 BTC per block will be worth for any miners so long as its value will be doubled in the next 4 years.

Yes, this is one of the scenarios that might be in the possibilities. Overall for bitcoin everyone is considering this.
Classic economic information already says it. If supply decreases with increasing demand, prices will rise. In such a case, if the fee is within a reasonable value range, Bitcoin will continue.

yes you're right. that's not easy to stop the demand, because bitcoin grow massively

Yes, the demand will persist and will break the cycle at any possible point. When bitcoin price decrease, some more new investment will enter to catch the comparatively lower prices which will stabilize everything else. As long as there are demands, we never need to worry about any ending as it will not be possible.

Only demand for bitcoin decides everything. Demand from new people will stabilize the mining profits, so continuous decrease for mining profits will not be possible.

i guess it wil never give profit for a small miner , not since few years ago.
the difficulity and electicity cost makes solo mining not profitable anymore , but till now there a lot of active miner exist.
why? it is because they know even the bitcoin that they earned that time not worth but it will become worthy in the future.

Has Bitcoin technology added new rules up to now? Has Satoshi's original technical design ever changed after Satoshi?
What I mean is not the improvements made in coding. Have new rules been introduced to change the operating logic?

No it won't. The block reward is halved each time. It creates more demand for miners and this way we will see a rise in price. If many miners quit, it would be easier to obtain reward and others will begin to mine. This system replenishes miner numbers.

The transaction reward will increase and bitcoin will never die, but just some people are trying retire from the securing bitcoin network.  :P

Bitcoin will never end as long as there are demands.  There are lots of factor that contribute to bitcoin survivability.  Technology, mass adoption, mining etc.  The most crucial is the adoption, if it stops then bitcoin will die, but if mining is non profitable, majority of the miners may stop but it will eventually make the difficulty lower, and the electricity needed to mine bitcoin will be lower too since people does not need that much of hashing power to get bitcoin reward.

yes that is right to say that if some miners even stop mining still some people will continue and then their reward will also increase. this system will even continue even in a better way. and bitcoin is not going ti end.

As quoted everything gets circulated and functions in correspondence to time. So when the supply decreases the demand will increase generating miners the profit. Another thing is that mining will be profitable till something comes alternate or overcome the bitcoin network.

As the block reward gets halved each 4 years, it actually becomes harder to obtain Bitcoin. Because the demand keeps rising, it shows us just how people are becoming more interested in Bitcoin and because it becomes hard to obtain one, the price needs to increase. Just like gold which is a limited resource, Bitcoin has to keep its price very high or it'd become useless to have one or to mine it. If gold was $1/oz nobody would be interested in investing in it.

I have some question base on your idea. If the reward for miner is decrease through years... so maybe they will quit and nobody will spend there money for mining so how can bitcoin will be created ?

One of the biggest problems of Bitcoin is the time to approve payments. At the moment we can say that your payment will be approved in 0-30 minutes with a minimum value of 90 satoshis/byte. For the average transaction size of 226 bytes, you need to pay 20340 satoshi. Average fee values can be viewed on this site https://bitcoinfees.21.co

Bitcoin was the first time the fee values were very low. Over time, these fee values increased. One of the reasons people choose bitcoin is that the commission fees are low in transferring money.
If the block award value is 1.5 BTC in the future and the bitcoin price does not increase, this time the fee values will increase so that the miners can make money. If these fee values are more than the money transfer fees of the banks, there is a possibility that people will drop the bitcoin.