Bitcoin Forum

Bitcoin with 18M+ currently in circulation, what will be the impact if the government decides to ban mining as alternative to stopping more creation of Bitcoin by shutting mining farms and it activities. just thinking about the effect as an investor.

Is it going to make Bitcoin more scarce and increase the price?
 or
will it crash down the price of Bitcoin as a result of the crackdown?

From my thought it's a two ways thing,The crack down will immediately cause the price to plummet due to investors fear and most investors might sell off their portfolio's until a point where the market will absurd the selling pressure.

For instance , the last year's China crack down on both crypto transaction and mining of Bitcoin that saw a little crash on the price of Bitcoin and later the market absorb the overall pressure and shoot up. Then , In other way it will increase the value of Bitcoin on the long run since there isn't going to more Bitcoin to be created due to miners will no longer have to mine Bitcoin.
therefore limited supply , will increase the price of Bitcoin.

It would not make shit worth of difference.
If miners go offline (like the did) difficulty drops (like it did) and the remaining miners keep going.

At worst you might have a few weeks of 12 to 15 minute block time till difficulty re-adjusts.

It's how BTC (and crypto in general work).

-Dave

This is a general misconception regarding bitcoin mining, bitcoin mining can go on pretty smoothly with a block every 10 minutes even if one single old laptop or PC is mining it, so no matter what they do, they can not stop the supply.

BTC has limited supply either way, but if they were to magically stop all miners from mining forever, then BTC will not increase in price, it will go to zero as it will be pretty a useless technology, miners are needed to perform transactions not just to increase the supply.

The slight drop in price to due to the news of crackdowns is expected. That's how markets react to news but it's nearly impossible to stop all the Bitcoin miners around the globe. Not all countries have stick with laws regarding cryptomining, some miners will migrate to such friendly countries and continue mining

BTC has limited supply either way, but if they were to magically stop all miners from mining forever, then BTC will not increase in price, it will go to zero as it will be pretty a useless technology, miners are needed to perform transactions not just to increase the supply.
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It will be nice if you further state more reason you think so about why the price isn't going to increase and go to zero, does it mean that Bitcoin cannot work without miners?. what about a situation whereby the (21M) total number of Bitcoin that will be in circulation is mined completely,  what would miners do ?, And what is going to be their reward? .I  need clerification

Read the white paper. Miners will always get the transaction fees.
And there will never be no miners. People will always mine. Be it home hobby miners or something else.

-Dave

I'm really trying to learn from you guys here because I don't have much information regarding mining.
If I'm not wrong, Bitcoin has not gone mainstream adoption and most Government are still weighing and studying the technology behind the system , and how it will impact the already existing fiat system (positively or negatively), because Bitcoin that we are talking about here is going to give power to the people to have full control of their money unlike fiat system, while the government we know is looking for a total control of money system. If they realize that Bitcoin is anti-government , and the best way to go against the system is to crack down on mining , what would be the effect in a matter across the Globe?
China crack down on mining for digital Yuan is a typical example.

I do NOT think the price is going to zero, my statement was:


The keyword here is "magically stop all miners" because it will be impossible to do so, 1 old PC sitting somewhere in the dark can maintain the network on its own,  the operation of mining does not need all the hashrate it has now, more hashrate does make bitcoin more secured but again even an old Nokia mobile can do the trick, so stoping all BTC mining operations isn't feasible, but if we were to 'hypothetically' assume it happened -- then nobody will be able to transact BTCbecause the transactions need to be put into blocks created by at least 1 miner, and thus, having bitcoin in your wallet will be no different than having 1 billion dollars in your wild dreams, none of these assets have any value in real life.

For this to make sense to you, you need to read about bitcoin mining and difficulty adjustment, once you fully understand that mining bitcoin can "at least" in theory be done with a pen and paper, you will understand that banning it completely is something beyond any government's ability.

Sometimes, I have thought about the reasons why governments or people in power that have to influence make a fuss about whether they will accept cryptocurrency or not. Why do it in the first place? As long as someone is running a node, it would be okay. A lot more people will take advantage of this if it Happens for sure (price decrease). I think. We are way more advance now that people have seen the potential of crypto, and it's never going to change anytime soon.

Nah.  As I can think a lot of people’s missing the basic things regarding difficulty, difficulty re-adjust every 2016 blocks and not in x weeks, the network params just want 2016 blocks every 2 weeks  if those blocks took more than 2 weeks difficult goes up if took less than 2 weeks difficulty goes down.
That means if the governments like I read above a scenario tha stop meaning forever or put out countries of big mining farms the difficult re-adjusting can take in a worse scenario months as not weeks. All those are scenarios, even if it happens developers can solve it, you should not worry.
Also make your thoughts the affect of such of scenarios can be, no newly coins mint, no transactions confirmations, a frozen blockchain. But don’t worry.

I’ve agree, with your points.

Let me add that Bitcoin in a worsted scenario can work without internet, that’s say don’t worry.  ;)

If mining tops completely there will be no adjustment, none whatsoever without a single miner out there mining there won't be a new block and obviously, no way to adjust the difficulty, of course, that's impossible but in such a scenario that's what's going to happen, a frozen chain with no blocks no confirmation no way to move coins.


In the worst-case scenario we could make bitcoin work by manually solving hashes and sending them between mining farms and by carrier pigeons, that doesn't mean it's feasible nor that it will be the same.

Sorry I can’t find any doses of humour regarding the manual solving hashes and carrier pigeons.
As I said Bitcoin can works without internet(TCP). The chain will be frozen due to high difficulty this can be solved with a 1 line of code.

but no internet means no energy conversion.  The whole reason bitcoin has value is energy conversion into coins.

and now the heat the miners make can be used for good.

below is a 4ph server water cooled setup that could be used to heat 2 enclosed olympic sized swimming pools.

https://i.imgur.com/FcL5bqn.png



this is how you convert energy to wealth.

the op is correct if the world's governments ban mining they will fuc all pow coins up.

but it the world's government's launch enough nukes everything fucks up.

So basically the hope is saner and cooler heads prevail.

Solar energy is practical for 40 lat north down to 40 lat south. mining coins could be the incentive to build more solar.

And not what is the governments shut down all mining


How about what if the world's govrement's make all pow coins mined via solar arrays non taxable.


I am tired of thread after thread of what is we fuck ourselves.

How about what if we help our selves?


.

Nah, even if they decide something like this believe me, may the energy consumption will be a justification, the real reason will be that they want’s to stop something that they can’t control.
No internet doesn’t mean no energy conversion, miners still will be able to solve blocks just they will not broadcast it over TCP.

I figured that even though there won't be as much Bitcoin in circulation, that fact will undoubtedly cause its price to increase over most people's expectations.
Will that, however, be the best scenario for cryptocurrencies? If the miners stop mining, would the Bitcoin that is already in circulation be sufficient, as many people hope for global Bitcoin adoption?

If miners stop mining Bitcoin stops!

There will be no blocks mined, no transactions getting confirmed no nothing!
Again, as mentioned in this thread 4 times already, if all miners completely stop mining all your coins are useless since they can't be moved anymore, there will be no adaption cause there won't be any possible usage anymore.

China's crackdown was differen,t as in that country has been developing instruments to control and rule over its citizens..i mean to say that any country that has an authoritarian or semi dictator or dictator rule will be able to control and manipulated the cryptocurrency world.

To counter this alarming situation, a lot of influencers have either shifted location or stopped. In that same manner a lot of inners have already shifted their location from China.

The world is not just situated to a particular country. Miners have many options and therefore I think miners will find a safe heaven for themselves.