Bitcoin Forum

Would bitcoin be able to recover? Are we safe since 80% of bitcoin has already been mined?

I remember it happened once in 2011 (https://www.themarysue.com/price-bitcoin-falls-below-mining/amp/).

the possibility of investors and bitcoin enthusiasts will race to buy bitcoin for the mine and hope that someday bitcoin prices can skyrocket so they earn a significant profit when the price spike occurs

Maybe bitcoin management are looking forward on what future positive results, that's why the price of bitcoin today is going down. Maybe it is only a strategic way by management so that bitcoin will cintinue their smooth flowing operation.

Satoshi thought and planned for it.

If the bitcoin price falls below the cost of mining, some miners will exit. It will temporarily cause block discovery to lengthen as the existing miners striuggle - but after 2400 blocks, the difficulty will adjust down. That means it's easier to mine. (The difficulty is directly linked to the cost of mining as you need many more miners to win a block when the difficulty is high).

Basically you'll get iterations of this till the cost of mining falls below the bitcoin price. If the bitcoin price fell to $1 I expect you'll be able to mine them with your laptop as the professional mining farms will have long given up.

That's too good for bitcoin's future if the 80% of coins have already been mined. The scarcity of bitcoins will increase its price very fast because butcoin has a lot of support from all parts of world and the more major economy institutions are now standing on their businesse on blockchain, so keeo buying and holding, the future will be bright

It is not an issue at all. All that happens is that the unprofitable miners stop mining. That will cause the difficulty to fall and the rest of the miners can continue making a profit.

It actually happens all the time as the difficulty rises. When the difficulty rises, it gets more expensive to mine. Less efficient miners stop mining and more efficient miners continue.

True. They will stop it. Many miners have already understood that mining of Bitcoin brings less profit that trading and investing (simple holding then) into BTC. The further we go, the less income is gotten from mining.

It's not just a matter of safety of already having 'x' percentage of Bitcoin in the existing supply but keeping the block reward in tact with variation in mining power in a situation like this. As a means of backup, difficulty will get readjusted based on the power being generated and block production will be back to an optimal average of 10 minutes per block.
There is almost no economic effect on Bitcoin users except that miners would have to suffice with lesser rewards which isn't too big of deal since they had their honeymoon period when fees were absurdly high.

See that is the misconception about bitcoin mining. Mining adjusts its difficulty according to the number of miners out there mining bitcoin, it will become less profitable if miners increase. But that would only happen if bitcoin price is very high, therefore mining remains profitable. The number of miners can never be to much unless bitcoin price rises by 50% until bitcoin block size is halved.

Logically speaking if the price of the goods you're selling is below the cost of production then you're surely losing money and as good as closing the production facility. But if you're still having faith in bitcoin, i dont think the price of it has falls below the cost of mining, either way you will still gain profits overtime but in the longer timeframe but you double the profits when price double like last month so it was still a win-win solution  ;D ;D

All we can do is hope that it regains its former price and still rise steadily. All the prices are still going down and some platforms are still continuing their programs. Mining is still efficient because you only use part of your CPU to sacrifice so you can gain something in return. If the price falls below the mining value then there will be more miners and wait for the price to rise again.

But when would we see 1$ price again, If we really did see that price again I would definitely start mining bitcoins and believe that it would generate me a lot of profit in the future. Nevertheless, It is nice to see that satoshi have thought of a solution before vanishing out of nowhere. But what will happen if all bitcoins have been mined? Wouldn't that be very unprofitable for most of the miners out there?

If all bitcoins have been mined probably, miners will make some fees in the transaction for them to earn bitcoins. I think it will become unprofitable from the miners and the user will pay a large amount for their transaction to be processed.

I think it's positive, that this low has appeared because that clears the speculation. This fall is more linked to what happens with Tether and the future market than with anything else. I do not think it's down 80% because it's an established industry. But if it happened it would be a great fraud and lost worldwide for many investors, even companies that have bet on this new technology.

There are the energy cost and that depends on each contry and there is the cost of 'computer processing' that you need. If less people mine bitcoin the processing power will decrease and when the algorithm review the dificulty of mining the cost will decrease. So, as others examples above, the market and the system will handle it's balance.

Once this happens, some miners stop mining, this mosltly happens in countries where electricity is more expensive. Then, when the difficulty is re-ajusted and lowered, it's easier again to mine so mining can become profitable again.

If bitcoin price fall below the cost of mining it will be a great advantage to bitcoin users in the sense that many investors and big players in the mining activities will exist mining bitcoin giving chance to small investors like us to be able to mine bitcoin even with our laptop's because the blocks will be readily available to be harsh easily.

Basically when you are not producing even such profit that can help you to stand out of the lowest line for their manufacturing, then this business need to be dumped. But bitcoins have another case, this is like an exception. They are now decreasing and you can observe it, they have crossed $6k down there. This might be a strategy to cope up with the demand of time, may this would be true.

Not only it happened in 2011, but it happened again in 2014, as far as I know. In 2014 I remember to have seem once expensive miners on sale for peanuts on ebay. Miners quit, others keep mining if they have very cheap or free energy. After a while there is a new equilibrium.

If the btc price falls below the cost of mining some miners will exit It will temporarily cause blockchains discoveries to lengthen as the existing miners striuggle

Bravo! Nice answer and I like it the way you explained it. Yes it's true that with decreased prices of the bitcoin the tension on the blocks will reduced down as miners will not be able to cover up the earnings and then keep the miner live.

In addition to this there will be one major indirect factor that will play role in demotivating the miners to exit the field and that is reduced number of investors and also existing investors will pull back from the bitcoin world as the prices drop to couple of dollars. This way GPUiners will benefit lot. You can confirm your own transaction by using your computer power by including the txid. That would be cool.

This could be a major problem, but basically no one would mine it anymore. But that would be a moot point anyway because there would be no need to mine a coin that is worthless. And without miners, transactions could not be performed. Essentially that would be the end of Bitcoin. I don’t think this could happen but it is probably good to be aware of the possibility.

I guess people would most likely stop mining it, because it is not feasible enough, I mean the bills spent in paying the power consumption of those mining devices and the expenses for maintenance will not be balanced anymore to it's profit. Therefore, people would most likely quit mining bitcoin and consider mining other types of coins.

The technology of mining is getting better each time and they switch to mining other coins when the difficulty for BTC is high anyway. It's all built in to bitcoin and everything else should be fine.

At that time, the miners will not exploit anymore and bitcoin transactions will be delayed. I think this is very unlikely because the country holds the most bitcoin and there are also many bitcoin-producing farms, especially China that do not want to lose their fortune in this market. Although Bitcoin has been created for a long time, it still has the advantage that new altcoins are not available, so dying can not happen in the next few years.

I don't think there is any big problem happen because there is no chance for the value of the bitcoin to get dump below the value of mining that miners spend .
Here we can see this thing in another way , if the price of the bitcoin get dumped then according to that condition many people will stop to mine bitcoin and than only few people will be available to mine bitcoin at loss and that will result into more and more profit for a particular no. Of miners and that will absolutely results into profit for him .
And also here we can see that many times we seen the dump in bitcoin's market but still we didn't hear anything like this , Because not much impact fall on the miners Because miners are also human they can understand that if they will hold then they can make much better Amount of profit easily .

If that was to happen then there would be a lot of people who would give up mining, simply because it is not as profitable as before. As a result, more people would just give up on mining bitcoin, they might result to mining an altcoin which they can treat as their new bitcoin or new source of income. That's how I see it.

If bitcoin price falls below the cost of mining it, part of the existing miners will exit mining and the difficulty level will be adjusted accordingly. That's awesome!

For me yes bitcoin can recover anything. Its price and value will rise soon. If you read its historical movement you can predict the price might give in the future. For me I believe its price will surely rise up and will hit to the moon. For now bitcoin is asleep but time comes it will woke up and surprise us.

As what I have been read a certain article about the news of bitcoin business, that last 2017 bitcoin earn $500 billion, so no need to worry all about, that 80% of bitcoin has already mined, because as what have been stated and written on the news, bitcoin is actually gaining. Hopefully, bitcoin will continue bloom, without any obstacles and hindrances, on their way, to a very long journey.

As a miner s you become part  of infrastructure either you

The  price will  become  lower  than mining value still  many  will  sacrifice  because they will  believe  that it won't  just  go down  permanently because  never in the history of bitcoin that it go down that low, and believe that's  bitcoin has a brighter future.

Yet the opposite is also true, that is, if the price of Bitcoin makes mining "too profitable" then more miners would enter the market until the profit diminishes as is no longer attractive to new entrants. That is why I think that mining is interesting as an speculative way of producing BTC (or any other Alt) with sights set on the future increase in price rather than on the immediate profit.

Most miners are not as impatience as the new investors.. They won’t just stop and shutdown they’re system for price reason as bitcoin has always the tendency to recover in a long run.. The difficulty is parallel to numbers of miners on a particular coins and if the demand/competition is lower the higher chances to be rewarded bigger that is the constantly been the happening since before..

a very good question, seems to be seen from the current condition when the price goes down, the miners will keep bitcoin as much as they can because they are already aware of its very limited availability bitcoin and it is difficult to get bitcoin so they will still be mining bitcoin.

it gonna be a big problem so i should think to that will cannot never be happen so hoping that to never come out with us!

Some miners will simply look for other alternatives in the mean time that could bring them profits. Difficulty will drop, cost of mining will soon drop so in the end there'd still be people mining it all through the way, it's just that some miners would probably try to maximize their profit by switching to other profitable coins out there by using their hardware. And in the current state of things, it's highly improbable for the bitcoin prices to drop below the mining cost since a lot of people are already involved. There'd always be a demand in the market no matter what.

The profitability of mining depends on the price of bitcoin. The higher the rate, the more profitable bitcoin mining. To improve the efficiency of mining will need to wait for price increases or get rid of competitors. In this case, the market will remain large players who have invested a lot of money in bitcoin farms.Otherwise, mining will not make sense. But I think this will not happen because the price of bitcoin will increase over time.

Then a lot of miners would opt out of their mining business and maybe go to ethereum or z cash

The price of coin mining will not be lower than the cost price. After profitability will decline a portion of miners will switch to mining other coins. This will reduce the complexity of the network and the remaining miners will increase their profitability. The blockchain system is self-regulating and therefore there will always be people who will have income from transaction confirmation.

Mining is a complete market activity, and mining costs are dynamic. As long as bitcoin is valuable, there are always miners digging.

When BTC broke the cost of mining, some of the mining unions withdrew, resulting in a decline in the force, the difficulty of mining, and the decline in mining costs. The miners who persisted could survive.

That would be an awkward situation hope the day doesnt comes specially when i am a miner myself :")

I think then also mining will continue or there will be a crisis of btcs which then can be never recovered nor miners can profit ever

That is never gonna happen again, because it will be almost worthless.. so no, just lose your hopes because it is not going to happen again.

Anyway, bitcoin is not going to die, and it doesn't matter what (if this is what you are trying to ask, of course

Dont know about it because i am a newbie and just started to earn btcs by the aid of small aids :)

It will be a serious issue no doubt but i also think that it is not going to happen, because the minor now finding the more cheapest source for mining bitcoin, so if even bitcoin price will fell down much more it will still be profitable to min bitcoin, therefore i do not think that it will effect the minor too much but will just reduce their income, but still they will continue mining bitcoin.

we all know that theres no permanent things happening here,just like the mining if ever it cost morethan bitcoin price,many of miners will exit but ofcourse they will just standby untill the price recovers.thats not easy for them to totally exit since the price of mining equipments and tools are expensive enough or them to wait still

Bitcoin will surely recover, all we need is to be patience and keep holding our bitcoin. The market demands respond positively so I really thinks that bitcoin value will going to have a good future as well as value, right now what we are just experiencing is a normal fluctuations, bit sooner bitcoin will reach another all time high record in its price.

You know it is very philosophic question, because when the mining become unprofitable, difficult of network will fall down, and it will come profitable again.

Nothing can be more profittable than fiats earnings. these btcs are one day and blind currencies what much can we expect from it?

The price of bitcoin does not affect the mining sector of the bitcoin market. The one thing that drives bitcoin mining and always has has been the earnings which the miner takes out of it. If the bitcoin miner is mining a good number of bitcoins then he will continue mining. Although now I do not believe that the price would fall below the cost of mining it.

No doubt in it. Definitely it would be a dark time, a dark era. But what to do when such scenario comes because you don’t have control over bitcoins world. So unfortunately if such conditions are observed what to do? This is important. As far as I know, you should be waiting. Don’t do anything else. Don’t see the market trends, don’t get tension. Just wait and prices would be increasing slowly and gradually.

I think yes bitcoin will recover back but I do not know when it must have happened.
Bitcoin is in like a rare item, the rarer the goods and the more people who need the goods then the price will be more expensive and expensive constantly. Well you do not have to worry, or panic. If you have some bitcoin should be stored up to several years ahead will be very good for yourself.

In this process miners will get Bitcoin to solve the equation. But if the costs incurred are higher than the income from mining activities, then the miners will lose the incentive.

It will break down..for sure and off course it's not safe..!
It will break down like tulip and..then thereafter ... It won't be able to recover..till a big.. whale invests in it ..

Bitcoins is alive because of investors .. thus if there won't be any more fluctuations and it will die because if the supply of Bitcoins stops and price goes down. That much there won't be anyone who will..be willing to.. invest.

The price of bitcoin will recover slowly and we can't predict when this takes place. The time period varies, based on the growth that we experienced by the month of December now we could have crossed $25k. We're staying below $10k,upon this I believe that the market is unpredictable. At any instance it won't go low to the cost of mining, because such a situation will surely lead to the destruction.

if it is true that there will be a decline in prices to fall below the cost of mining, inevitably must stop mining, if seen from the development of bitcoin is currently very interested in the number one cryptocurrency in the world, certainly Many people who participate to invest some money for bitcoin, it's about the policy issue of every country that has not found the bright spot of bitcoin legality.
when bitcoin gets the trust and legality of the country there will be price increases every year.

Then miner will sold their mining equipment, it happened before

The drop in hashrate will make mining profitable again, and the cycle goes :)

Nope, they will not sell their hardware. They will simply switch it off until the difficulty has adjusted enough to make it

profitable to mine again. Why would you sell hardware, if you know what might happen in the future. The miners will also

switch from one Alt coin to the next to find the most profitable coin to mine. {Like they did with BCash a while ago}  ::)

It will happen the same that happens to all businesses, if miners are operating for a loss they have two options, one is to mine another cryptocurrency and obtain profits that way and two is to go bankrupt being bought by another miner and then only the most efficient miners remain, this is the survival of the fittest at its best, also after two weeks the hash rate will go down and then the difficulty will adjust, it will get lower allowing the miners to be profitable again, so as you can see satoshi was really a genius because he thought that far ahead.

Of course, if Bitcoin price falls below the cost of mining then all miner will stop mining Bitcoin, this will do transaction fees go up. But i remember that Satoshi Nakamoto seem had calculated this, after 2400 blocks, the difficulty will adjust down, that means it's easier to mine Bitcoin and the cost to mine a Bitcoin will lower than the price of a Bitcoin and this will promote miners continue mining Bitcoin.

I think miners will stop the mining till all the bitcoins remaining get used up and wait to see if the situation uplift or not. May be.

Wouldnt that be a threat to a manufacturer like Bitmain? I think it is in their interest to pump BTC than give up and lose their billion dollar company. I know this is shocking, but Bitmain is already earning billions from ASIC miners.

We have seen this kind of pump done by them during the halving of mining rewards.

I think there's no problem with that. Come to think of it, when it all began the price of bitcoin is not this high. But miners were able to compensate their cost for mining. And come to think of it, it is actually positive if incase mining stops. It means the amount of bitcoin circulating will be stabilized but the people wanting to buy bitcoin will increase thus increasing the value of bitcoin as well.

Yes - though Bitmain is insulated by the fact there are now so many bitcoin forks for miners to mine - bitcoincash, bitcoingold, etc etc.

Bitcoin will go to at least $50k this year

I think that people will no longer choose to mine it and instead of buying mining tools or rigs then they will just buy directly it. The price of bitcoin is not always going up so i think that in the future, the price of bitcoin might have some huge downfall and it might reach where the price is just like from the past few years like $2,000.

But its in the best interest of every ASIC miner involved in cryptocurrencies for BTC to succeed. If it falls it will take every coin with it. Thats why I do not know why some altcoiners are so quick to indicate faults in BTC.

There are maximum chances for this to happen yes. Because when you are on something and trying to make it work and ultimately your profits are running away from you. Plus the prices for that coin are going down and even your mining basic payments are not fulfilled so how can you continue? Definitely if I would be at such place, I will surely think of getting out of this mining thing.

Bitcoin mining is not going to stop anyway. As you said, mining companies great role in the pumping and dumping of the prices. We all know that these companies or agencies are earning countless money from this process. I am pretty sure that the mining of bitcoin will keep going on and the prices will no way go down the cost of bitcoin ever. Bitcoin is still strong enough to stay at a price higher than mining charges.

This is not a fault on the part of bitcoin if rest of all toddling currencies are dependent on it. The thing is they are new to the world and bitcoin was there when no other currency was in the market. Bitcoin can never ever be beaten by any coin from the community of altcoins because of the immense support bitcoin is getting throughout the world. Altcoiners should stay realistic and stop blaming bitcoin.

Bitcoin price is very unpredictable and as the percent of coins are getting higher the miner will get less and it is not good for them.

As we know miners are helping bitcoin transfer to be better.

But we dont need to be afraid as the lightning network will cover it for us. SOON!

But if the miners stop supporting the bitcoin transaction then it may leads to increase the transaction fee but most of the miners now understand that they can earn lot more holding them that is why they are keep supporting even the price falls but it will be a bad situation id the price falls below the mining cost,they hae no more reason to mine.

I don't think that is possible because if the price fropos that means the number of transactions is droping meaning with the same hardware you will be able to make more amounts of bitcoins.

If the price drops suddenly then usually, the panic starts and people send their bitcoins ot exchanges in order to sell it. Mining might actually become unprofitable if there won't be a new ASIC released. However, I doubt that it would happen. There are many cryptocurrencies which are not profitable to mine but people still do it? Why? They probably want hold it and sell when the price increases.

No one accepts a coin without profit. They will not mine it if they do not receive any profit, I'm sure of that. They always calculate carefully, or at least, they see its potential in the future.

In this case, large miners will continue their activities. Difficulties will arise only in small miners, because they are not ready to work at a loss for a long time. If you do not have a large mining enterprise, then bitcoin mining is now generally meaningless.

If the price bitkoyna falls below the cost of its production, miners with expensive electricity will leave and remain the strongest

If it happens that the server cost of mining a bitcoin is greater than the price value of that bitcoin and this happens to all of the coins then, in this case, the coins generated will be the only coins existing in the market and no more bitcoins will be mined so bitcoin will only be affected by demand then

I think it's just an ordinary cycle in the crypto world where bitcoin will experience its lowest point every year and we as fans of crypto especially bitcoin must be ready for all the possibilities that occur

If the price of bitcoin fell below 5,3k then there will be a lot of mining farm that will stop mining bitcoin and that will make the difficulty go down after some time. If the mining difficulty go down then it will be easier to mine bitcoin and the mining cost will be lower aswell so it's definitely possible for bitcoin to go below 5k, not that i want that to happen though.

A lot of people will stop mining and the Market will correct itself. Some will remain mining for future profit and other will just purchase more at mining cost.

Mining would be affected if this happens and prices continues to stay low. Though bitcoin prices
are so volatile that dips and deflation happens to a lot more than spikes. It's a norm it seems in
this market, prices can affect a lot of sectors here.

In my own opinion, bitcoins price will never drop the cost below the mining price because people will stop mining in that situation and the transactions will be slower.

Exactly. I think so.
It will not be exploited if they do not receive any profit, I am sure of that.
They always calculate carefully, or at least, they see the potential of it in the future.
I suspect that it will happen.
There is a lot of electronic money that is not profitable for me but people still do it? Why? They may want to keep it and sell when prices rise.

Mining is such a tricky business now, I say that because the more the market cap is filled, the difficult it is to mine coins. And so, as more and more Bitcoins are mined and the market is filled by it. It would be more difficult to mine the remaining ones. Also, like any other currency it's not just the creation, or in Bitcoin's case, mining, that could make it prosper. The transactions and healthy circulation of the assets that are already in the market would play a bigger role in keeping the value of Bitcoin up. Why would you rely more on those assets that are not mined yet, when there is so much more to do business with that is already in the market.

Definitely Yes I agree. Investors and bitcoin will race to buy bitcoin for mining. Money in mining is much higher.

I find That hard to believe, too much people involved

If the value of Bitcoin goes down below the cost of digging, people may not be able to start mining anymore but will buy back Bitcoins, which results in loss of diggers, increased transaction fees.

It is simple, the miners of bitcoin will pull out their funds and equipments and they will be transferring to another type of cryptocurrency that they may find profitable for long term mining and that will become the cause for the fall of bitcoin and the market of bitcoin will just die and that will be the very first legit death of bitcoin.

I'm afraid of those who mined bitcoin and kept it for a long time and sold it all and made the bitcoin price go down.
this is quite dangerous and can happen anytime if they sell it on a large scale,
my advice remains vigilant while in the market Because the price can change instantly without notice

I agree with your opinion. But it is hard to make that happen because the community uses Bitcoin very large.

If you understand simple economics of supply and demand you are very close to understanding bitcoin, now in any business if the production of a good or service is greater than the value generated by the gold or service, it is no longer a sustainable business, in this case, the bitcoin market will crash

I guess bitcoin price may fall but the cost of mining wont! They might just increase the fees of mining and thus cover the cost of mining in most easiest way like that. I guess, it wont matter if the bitcoin is nearing to an end of its supply because we will still need the mining operation to continue because thats what confirms the transaction from the blocks and thus we get our BTC transferred. So either way they will always survive no matter what. If bitcoin price false then it might happen that they will charge too much, may get different difficulty levels and more. So its like everything will be same but more costly for mining stuff.

Nothing significant will happen, the miners will have two options, the first is to keep mining despite the fact the current price of bitcoin does not cover the current costs, this is not a problem for big miners since they probably have a lot of cash stored just in case this happened, the second option is to mine something else that is more profitable.

If Bitcoin prices drop below the cost of mining, I believe miners will be selling Bitcoin mining equipment cheaply. Unless Bitcoin is exploited, the Bitcoin trade will be slower, and Bitcoin will collapse.

I think that we are having quite a lot time before it will be done. I mean the last block will be mined. Ant until that time, I dont think that this case will be real...

This could be dangerous assuming it happens because it will be a lost to Mine .But we are not ever going to get to that point.But honestly ,I believe we will never get to that point when bitcoin price will become so low.The price of bitcoin will always almost move in the forward.There are flatuations that are bound to happen here and there but bitcoin is on track to a great victory.

If Bitcoin ever falls short it might not necessarily be the end. There are numerous alternatives on the market that offer a plethora of utilities that supersede Bitcoin's. Though I feel that a true successor (Bitcoin 2.0) has not yet arrived, instead, the market has many platforms which offer completely different options from Bitcoincoin's blockchain, solving the scaling, speed, and other issues plaguing the network.

In economic has a 2 basic asset : demand and supply. If Bitcoin had not been demanded, it would not be mined over than 80%. Also, mining will have no meaning with the drop in price unless demanded. But today it is more hard to see this picture that Bitcoin from mining is at the bottom of its price.

Bitcoin has holded the very important level about 6000$ and it means that big investors and traders are not going to drop bitcoin lower, consequently they believe in bitcoin and they will probably lead bitcoin to achieve new highs. There is a question when will it happen? I do not know exactly that is why I have bought BTC not to miss a new strong upward trend.
For example, look historical data about gold. I remember that gold was bout 200-300$ and nobody imagined that gold would be 2000$. Also we may have a look at bitcoin some time ago bitcoin was 200-300$ and less part of people believed in bitcoin and bitcoin would achieve 20000$. So, I believe that bitcoin will show new highs but I do not know when.

Indeed, because mining may be the price of bitcoin down because they get it for free, waiting and producing bitcoin. It's very easy on our capital appeals or looking for bitcoin by following the bounty and getting paid bitcoin.

Is this possible?

That will be the worst option, since they are selling the only means that they have to recover their money, that is a terrible deal for them if you ask me but it will be a great deal for those that can get that equipment cheap, but you are overreacting you think that bitcoin will collapse for something so insignificant, if bitcoin could be destroyed by that then bitcoin would have died already.

"If Bitcoin prices drop below the cost of mining" miners just stop their operation and use the money they use for electricity to buy Bitcoin. Free market will be adjust according to the supply and demend. Nothing to be worry about to much.

I don't think it would really go lower than the price of mining, because the miners are going to be less likely to sell at a lost. It wouldn't make much sense to them. Mining factors into the whole supply and demand of crypto. Less miners willing to sell at a loss, then less Bitcoins available for sell, thus higher price.

What happens if bitcoin price falls below the cost of mining it?

Lots of dramatic noises and "I told you..." "BITCOIN IS SCAM" comments. etc etc.

I think the miners don't really make the price of bitcoin fall so much but new investors who panic when they see the price of bitcoin go down and sell it. Because of this they only help bitcoin become more down because it sells when the price of bitcoin falls.

That is a commonly stated misconception.

First, miners must sell most of their bitcoins, even at a loss, to pay for their operational costs: power, cooling, rent, labor, etc.

Second, when it comes to holding bitcoins, miners are no different than anyone else. They may or may not sell the bitcoins they hold at a loss.

Finally, miners are only a tiny part of the market. Miners sell only 1800 BTC of the 600,000 BTC traded every day. Their behavior has almost no effect on the price.

The reality is that if it costs a miner more to mine the bitcoins than to buy them, a rational miner will simply stop mining.

Agree once that happen price will rise again since some of the miners are gone and only few miners will sell Bitcoin to gain back the cost of electricity and rigs.

I think just when the last 20% will be extracted and it is worth waiting for the increase in the price of bitcoin.

I think if Bitcoin falls below the price it costs to mine that some of the smaller guys will fall off however the big guys will keep rolling in hopes of future price gains.  If they made large expenditures they have no choice but to keep on going. 

I hope that it will not happen because it will have a huge affect on the price of bitcoin because if the miners will not be able to make any profit anymore then it will cause for a lot of shutdowns on their mining rigs and that will become the reason for the network to become slower where the user will find something better and that will become the cause for bitcoin to fall down.

That will be a huge mistake, I have seen people say that the bitcoin they mined back in the day when it was not profitable to do so was in fact the most profitable of all, the miners have a lot of money they are not going to suspend their operations just because it is not profitable at this time, since they know the price of bitcoin will recover and the bitcoin they get can be sold for a profit in the future.

Suppose your cost of mining is $6000 per bitcoin and the price of a bitcoins drops to $5000. Are you going to mine 1 BTC for $6000 or are you going to buy 1.2 BTC for $6000? A smart person would stop mining and buy the 1.2 BTC.

If price of bitcoin falls below the cost of mining, some people may quit mining. But their quits does not affect much. I don't know if we need to think too much about it because even if one person does mining, the system will continue to process.

  Well, if we follow your point of reasoning Bitcoin price will be affected, But please, try the make a good research with comparative data to support your claim, base on the Hash Rate, Bitcoin miners increase to some degree, although the Bitcoin price on the market as posted goes down yet is more strong now and even more stable. Let's wait and see, let's be patient and monitor our investment.

Survival of the fittest. That's why the system works so well. It's actually designed in an evolutionary way to ensure continual development and destruction of the old if they cannot keep up with the times. It's really clever if you think for a moment. A self-cleaning mechanism for when corruption or laziness or greed set in. It cuts all of the non-performers out at the bottom by making the mining process too costly for them, and then opens up a path for whoever wants to join in, providing they can do it better than those did before. Better keep yourself afloat or get out.

I think if bitcoin price not profitable for miners, they must be wont to mine bitcoin anymore and no bitcoin transaction can be processed. It will hurt to bitcoin price. But in several country, there is miner have lower cost compare with others country because electricity cost more cheaper

In my opinion, Bitcoin mining is meant to come to an end, knowing that the number of bitcoin is limited, miners knows this, as well as the whole cryptocommunity, But it doesn't dictate the demand of bitcoin, if the consumers continues to value bitcoin or any other cryptocurrencies then the cryptocommunity will continue and bitcoin will survive. Of course by this time, bitcoin miners would have definitely find another way of earning money. I think even though the miners have completely mined all the bitcoins out there, the crypto world would continue. 

Bitcoin supply is limited, but I am sure that not all Bitcoin will be able to be mining with the assumption that mining costs will be even greater, while now prices are falling. The period of earning money from mining is certainly no longer a profitable thing.

Miners will be losing profit and most of the people will be delaying on their transactions since miners will stop running the block chain but as of now, the state of the market is running good and bitcoins is on $7k dollars price.

that would be a fools investment, when the cost of mining bitcoin is higher than the price, the value of bitcoin will fall and mining bitcoin wont be posible as much investment wont be placed on mining when on the real sense  the value is less than the mining cost.

Maybe it will be a bad thing but in my opinion mining does not cause bitcoin to drop in price but new people invest in it and panic when the price of bitcoin goes down and sells the bitcoin they hold.

I have heard about that happening in the past but for now I think it is not that possible as it was before. Because for now the interest of people on bitcoin as already too high for them to just forget about it and stop investing.

I think it depends on the position of BTC when it happens. Probably the market will fall into crisis and crypto currencies will lose their hype, but I still don’t think that crypto will die in that case.

The title is different from the body of this thread i dont know whats the connection between them

But i am sure this will not happen in future because bitcoin wont fall under that mining cost,and i believe that the value of cryptocoin now is stable and will move smaller percent from time to time

Of course it will make costs very expensive, because it is expensive so automatically users will not send bitcoin and prefer other types of coins, I hope that the price of bitcoin continues to rise so it can reduce the cost of miners when sending bitcoin.

I just don't get it, when 80% are already mined then the price will tend to increase as we're approaching to its supply. So the more bitcoin mined the higher the price can increase plus the demand that bitcoin gets. So what's bothering you now brother? However, bitcoin will still have a halving so it can somehow affect the price sooner.

Either way, whether the price of mining is more expensive than the value of bitcoin mined, then it's all the same. Bitcoin will still circulate in the market. Besides, Bitcoin isn't the only crypto currency out there. We have alt coins to pick up the slack if ever bitcoin actually falls behind which i highly doubt.

In terms of miners, this might be detrimental, but many users also want to have bitcoin at a low price, which can trigger a market demand that will increase the price of bitcoin. I want to know how much mining costs in your country? I think bitcoin only prices $ 100- $ 300 in 2014 and what do miners do, do you know?

I haven't watched BTC mining too closely, but XMR's price is down 66% over the last 2-3 months but the total hash rate has barely budged, rewards are down and difficulty unchanged. I was expecting to see a significant drop in hash rate as miners dropped out but that hasn't been the case. What's going in with the economics here?

I think that now in recent days this case is more possible than it was before and I think that because the mining price is significantly growing from the time that previous case happened.

Each year the profits from mining become smaller and smaller, and the price of the equipment is growing. Despite it, I believe that Bitcoin is not going to fall so critically.

Well if this happens, bitcoin miners will stop mining because of the expenses they are using in able to provide there needs and they just settle down. If this happens more probably the market will be down, if this happens more investors will come in because of the low value of bitcoin. With this the bitcoin's market will rise again. And so transaction continue at the same time the bitcoin will be the currency of the future.

if that happened i don't think anyone would want to waste their time investing on something can't make any profit. But since 80% of bitcoins have already been mined the possibilities of bumping in the that situation again is very low so we have nothing to fear of.

It is possible that the price of BTC is lower than 10% of the cost price, but it is impossible to maintain in the long run, and the possibility of any speculative product falling below the cost price is very small.

Of course there will not be anyone who transacts in bitcoin, as we know that the most preferred thing about bitcoin is the cheap transaction costs, when the transaction costs are very expensive that ever happened in December to February, it certainly makes people do not want to send bitcoin.

i dpnt think it is possible in short term. but if it happens, some miners give up mining and difficulty decreases. so remaining miners keep mining with a less mining cost due to lower difficulty. this system has its own internal balance.

Bitcoin has been running long and mining as been running long too that we would eventualline everything. That being said, once the price of Bitcoin is lower than the cost of mining it then we have mined all the Bitcoin and the price of Bitcoin itself woyld start to stabilize completely. I daresay i hope it would come soon.

I don't think this will happen. When it is lower than this price, the miners themselves will buy bitcoin. The decline is only temporary, the rise is certain, but you must wait patiently.

If more than 99% bitcoin is also mined then also you will be in profits because at that time you wont be getting any coins mined but you will still have to confirm the transactions and thus for doing that work you will have to mine and you will getting your rewards in terms of heavy fees I believe. Yes, the fees that will be taken by you is the only income source you will have. I am guessing if you cant get the bitcoins anymore then probably the fees for the mining operations will rise heavily. Just like the incidence of last december when there was heavy congestion in the network and thus to cop up the situation they risen then fees drastically. One way another mining will always go on.  :D

Even if the production is unprofitable in connection with the price , people will still produce it, because everyone is sure that the price will be normalized and everything will pay off.

- Now is not beneficial but after this, it will be another matter, this is the thinking of the miners and because of this positive thinking, miners will work with all productivity until the last bitcoin is exploited, worrying and thinking about the current benefits only make them ignore the benefits in the long run, they do not have time for that. In addition, the price of bitcoin fell below the cost of mining, all this is probably the plan and the cooperation of miners with other big bosses, they want to make more bitcoin to control the market more easily

It really doesn't. Whenever the price drops to a certain level the miners stop selling their bitcoins they mined which means it is really hard to find people that sells for lower.

Considering you need more people selling than people willing to buy for the price to drop if you take away all the miners that sells their coins you find that buyers always overcome the sellers in that case when miners don't sell, which means whenever price drops below the price of cost of mining the price goes up. It always stands at the price of profit no matter what because you can't just take away the miners and expect the buyer/seller sides to be equal.

well for your information since you are a newbie there is a section you needs to visit. Try and check on meta section and learn the basic rulings so that you will not be banned on this forum. Frequent reason for one to be ban is plagiarism so do not expect that you will not get reported because there are many people here would like to report on you!

Now for mining bitcoin does not require that much mining fee because it will depend on the volume of bitcoin being transferred or converted. For example you have converted 1 BTC so there is an equivalent of 3% to be deducted on the transaction you will going to made and that would be in terms of satohis which has a corresponding value in dollar or any fiat currency. Again it is 3 % of the value of the bitcoin you are trading does the mining fee to be deducted.

it might but not for long. some miners cant afford the cost will shutdown their machine, which in turns reduce the hash rate. the remaining miners will eventually meet the break even when the price rise again.

   
     Good explanation bro.

Been wondering  how this would work on Proof of Stake in terms of profitability. Proof of Works miners could easily sell off their mining equipments, use them for other coins or keep them until mining becomes profitable. But Proof of Stake people lose in several ways:
1. Their holdings devalue massively,
2. They will hardly mine enough coin commensurate with their stakes.
3. And worst of all, their coin is locked.
Seems the creators didn't anticipate this things



Well I wish this whole thing deters people from acquiring large mining equipments so that mining can be decentralized.

If prices fall more in the bitcoin, then it will be very detrimental for the miners, given to mine the huge costs required bitcoin to pay for the cost of electricity and the internet had not been a fee for maintenance of the device, then if the price fell it will make the miners suffered heavy losses

i see it otherwise, this past 2 years, mining has greatly affected the market price, some big holders are into mining, they see it more effective way to gain bitcoin, which resulted in abundance supplies on the market making the price drop. if the price of bitcoin falls, and the cost of mining it is high, i think the trend on the dip will continue until there is too much supplies on the market, which is not good, more supplies means low price.

Sorry to say, but at the moment, you really sounded like a drunk with all these you have posted. What has mining all of bitcoin gotten to do with the price going lower than mining price or its stabilization? At least, if you do not know anything about a topic, you do not have to post, and this is where you should be reading and get familiar with what everyone is saying but of course, a lot of you are too lazy to want to know and do not care to even gain the knowledge, except to increase post count and instead, you just come to the public to embarrass yourself.

Apparently, we have seen bitcoin price fell below the cost of mining before and the likelihood of still experiencing it would be there. It won't change anything at all, as this would simply affect the small miners and in that case, as smaller miners get out of the space permanently or temporarily, the difficulty will reduce and that would mean more incentive for the bigger miners. Absolutely, I am sure satoshi already though about issues like this and has fashioned that out.

I don't think bitcoin price will fall below the cost of mining it because if bitcoin mining cost more than its price,  miner will stop mine bitcoin

Anything can be possible in the short term and even though we may think this could not be possible, it still does not mean that it cannot happen at all. We have seen this happen before and we may still see it happen again and for the fact that new and more effective miners are now being produced, I want to assume, no matter what, things should still work out normally for the bigger players in the mining industry and if the price reduces below mining cost, absolutely, this is something that would not pay small miners in the short term and may want to bail out temporarily.

As miners stop mining due to a low price, the cost of mining goes down such that the price remains higher than the cost. Is that what you mean?

The Bitcoin mining can be unprofitable. And if the percentage of good miners stops, then the number of transaction/block solvers would reduce. And then sending bitcoin will take more time and be more expensive. So this is the basic scenario.

But, mining costs around the world vary greatly, so it is possible that mining can shift to various regions where the price is cheap. Liquidity will also be affected, because miners may not sell below their costs so that it will function as a natural price floor. But in the end, 1 BTC is still 1 BTC, and most people who mine do not really care about short-term price volatility, so they will only continue to accumulate it.

There is a general rule in economics that you stop production if your fixed cost is not met. This case of low price below the mining cost is the same case and in such a situation, the miner will stop mining because to minimize the loss.

But we might not reach such a state so early as this will hamper the supply of Bitcoin which will be a loss of value. The cost of electricity used in mining is very high and in China, they use solar panels for the process and this way maximizes their profit in future.

In this case, could low profitability of mining new block be countered by increased transaction fee?
After all, the point of mining if not only to add new blocks, but to maintain the network`s infrastructure.

It seems to me that bitcoin miner will stop mining bitcoin because the cost of energy for mining is really expensive, they can not deal with it.

I think that such a situation can not arise, because Bitcoin is obliged to pay for itself, so mining costs will not fall below this!

You do have some back up to your claims? Did you check the hash rate and cost of mining a bitcoin today? Are you a miner? LMAO, again you are a complete troll. Do you think its more profitable for bitcoin miners to shift to lets say BCH and mine it?

I don't think this will happen. We already witnessed similar situation. We have to be patient and bitcoin recover.

The mining fee should not be higher than the actual value. Granting you are correct how can anybody use the coin when they have to pay more than the real value? Should mining fee become costly, it is for certain that the value of coins should even be higher than that otherwise bitcoin will be of no use to its users. And who will then mine without users? So the existence of one is always relative to the other. These things should be in harmony otherwise everything stops.

If that happens, the price of Bitcoin would fall dramatically because a lot of miners will exit and sell their BTC.

There are many projects for that.
there are ongoing like the lightning network.
mining will not be a problem.
well i dont see bitcoin will go lower on price again.
we have seen less than a thousand value last year and it will not happen again.

this is my question so far, maybe in my opinion people will really leave BTC because of what we know to mine BTC we really need very large electricity, and of course our electricity bill will be very expensive, and not to mention operational and maintenance costs in the event of damage, but to date mining btc is still profitable and profitable so I think for now it is still safe

Then I'd guess no one will mine it any more. I'd be guessing that since Bitcoin has already been mined, everyone else would just stick to trading bitcoin and eventually becomes more stable for adoption and would be used for what is it intenteye to be, a currency to exchange goods and services with

I think the mining process will stop unless the price can bounce up in shortly so the mining will not stop. But I don't think that the price will fall too deep because the miner will not let this is happening and I am sure that many people especially the big whales will hold the price to not down for more. For now, I think the miner is not getting many rewards from bitcoin mining and they still trying to survive in this conditions, and they support bitcoin so the price will increase later.

Lol, I’m not expecting that to happen, cause if it does happen, it will make a lot of miners to drop out and stop their mining. They wouldn’t be profiting from it and there wouldn’t be much miners left, so that might make the difficulty to increase. Although someone here said something good about it– he said it will make it possible for people to be able to mine Bitcoin with their laptops, although I don’t know if that’s true.

At the present time, when the value of Bitcoin is decreasing but not much, we can expect that in the last few months of 2018, Bitcoin will have a boom in terms of value. But if they really fall below the price of digging, it is likely that diggers will stop digging but instead, they may become one of the investors in the world. Because they have a lot of experience in trading and exchanging them

when all miner go out , no more bitcoin trascation confirmed and finally failed.with less miner, bitcoin transaction speed could be slower.and make people think this is not suitable anymore to replace fiat.

But i think when its happening there will be such a chaos in use of bitcoin and it even might make the price getting down more futher. The only things that can help market to grow is the real use case such as a blockchain use and also transaction of cryptocurrency.