No Mining = End of Bitcoin?

[Sierra8561]

I think if mining stopped, bitcoin would still be going, just no more would be generated.

Transactions would stop if there were no miners.

[notlist3d]

I think if mining stopped, bitcoin would still be going, just no more would be generated.

Transactions would stop if there were no miners.

But there are people who will never stop mining...  so this will not happen.  Even worst case bitcoin failed and most left it there would be some who run a machine for fun.  So you still would have miners.

I don't think there is any realistic thing that will happen where no miners is a realistic option.   So future where no blocks are solved is just not going to happen.

[toothless]

Bitcoin difficulty is now almost 2 billion and rising daily.  Because of this, miners are continually being forced to invest in bigger, more powerful chips to have any hope of claiming a block and the reward that goes along with it.

Currently miners are rewarded 25 BTC for each block they successfully add to the blockchain.  In July this reward will be cut in half, so rather than being paid approx. $12,500USD for each block, miners will be paid approx. $6,000.

In addition to this reward, miners also get all of the transaction fees for each transaction that forms part of their block.  The higher the transaction fees offered by the transferee, the bigger the profit for the miner.  So, as we have seen daily, when forming a block, miners look to include transactions for which users have paid a higher transaction fee.

With bitcoin halving fast approaching, miners are already starting to project huge declines in profits.  Some have already declared bankruptcy and others will follow. 
See here:  https://www.cryptocoinsnews.com/bitcoin-miner-kncminer-declares-bankruptcy/

With fewer miners, the funnel through which all BTC transactions must flow, gets smaller and smaller.  There have already been numerous cases of delayed or lost transactions as miners seek to profit by selecting only the highest rates of returns (processing only those transactions that come with a high transaction fee).  It would be reasonable to expect that as miners leave the BTC scene, transaction times will decrease further for all but those who are willing to pay ever increasing transaction fees.

Eventually we will reach a point where the only reward coming to miners will be through transaction fees and though many suggest this won't be for many years, the fact is that the implications of what's to come can already be seen and felt.

We will reach a point where there are very few miners operating and their sole opportunity for profit will come through transaction fees.  As Bitcoin becomes more centralized in the hands of a few miners and almost all transactions flowing through mining farms in China, the prospect of a Bitcoin mining monopoly looms larger and larger.

So what do you think is likely to happen to transaction fees at that point?





 

[notlist3d]

..full above
We will reach a point where there are very few miners operating and their sole opportunity for profit will come through transaction fees.  As Bitcoin becomes more centralized in the hands of a few miners and almost all transactions flowing through mining farms in China, the prospect of a Bitcoin mining monopoly looms larger and larger.

So what do you think is likely to happen to transaction fees at that point?

Honestly it's so far away no one can give a good speculation.   The hopes is that the fees make it where miners still profit.  But we don't even know what value and difficulty will be at the having coming up.  So going that far in future... just all guesses.

I'm sure some will try to speculate, but I just don't think it can be done accurately that far.

[ZedZedNova]

This may be hard to grasp by many here because many here are hobbyist or speculators. I am with Phil, as a hobbyist, I will continue to mine regardless of price.

That's where I am now. Bitcoin mining is a hobby so I can learn more about blockchain. I like the idea of sidehack's Compac stick miners, and have one happily mining away at ~18 GH/s and earning between 750 and 1500 satoshis per day. In today's mining environment it will not ROI, but maybe it will sometime down the road. I'd also be interested in a 500 watt home miner built with the latest generation of ASICs if one gets built, preferably by someone here.

Cheers,

- zed

The next step from USB mining would be either an Antminer S3 but a Antminer S5 is not very expensive either. Do note that you will not ROI but it's nice to play with a bigger Asic.

The S3 you can underclock and make it pretty quiet, but it's quiet dated at this point.  The S5 I kinda think of as hot and loud.   But going to either from a single compac is a pretty big jump.

But he also mentions 500 watt with latest generation, so S7-LN might be closest thing to what hes wanting.  But we don't know a ton about it yet.

Follow this thread: https://bitcointalk.org/index.php?topic=1487358.20

If this happens, and it's a big IF right now, it has my interest.

- zed

[Josef27]

Makes you think.  If miner's stop mining, as the amount of miners drop off, so would the difficulty. Allowing fewer miners to complete for the same amount of transactions. Difficulty is part of the algorithm, it's artificial.

[acaciosc]

Makes you think.  If miner's stop mining, as the amount of miners drop off, so would the difficulty. Allowing fewer miners to complete for the same amount of transactions. Difficulty is part of the algorithm, it's artificial.

This. AFAIK, less miners = lower difficulty = more profit. In short, difficulty is adjusted according to the network hashrate, which means that Bitcoin (and virtually any other cryptocurrency) will always be profitable (by pool mining and/or solo mining). An equilibrium point.

[notlist3d]

This may be hard to grasp by many here because many here are hobbyist or speculators. I am with Phil, as a hobbyist, I will continue to mine regardless of price.

That's where I am now. Bitcoin mining is a hobby so I can learn more about blockchain. I like the idea of sidehack's Compac stick miners, and have one happily mining away at ~18 GH/s and earning between 750 and 1500 satoshis per day. In today's mining environment it will not ROI, but maybe it will sometime down the road. I'd also be interested in a 500 watt home miner built with the latest generation of ASICs if one gets built, preferably by someone here.

Cheers,

- zed

The next step from USB mining would be either an Antminer S3 but a Antminer S5 is not very expensive either. Do note that you will not ROI but it's nice to play with a bigger Asic.

The S3 you can underclock and make it pretty quiet, but it's quiet dated at this point.  The S5 I kinda think of as hot and loud.   But going to either from a single compac is a pretty big jump.

But he also mentions 500 watt with latest generation, so S7-LN might be closest thing to what hes wanting.  But we don't know a ton about it yet.

Follow this thread: https://bitcointalk.org/index.php?topic=1487358.20

If this happens, and it's a big IF right now, it has my interest.

- zed

Pods would be great for certain aspects, but cost chances are will be higher compared to a full size miner.   I personally am a fan of the S7 (and what looks like carried to S9).   Getting the most hash I can out of the miner.  But I realize I am lucky for sound/power not to be a problem.

Don't get me wrong I would buy a few pods like I did with compacs and lotto mine chances are.   But I don't think it is still a way's till a product comes  (if any) though that.

[techgeek]

Makes you think.  If miner's stop mining, as the amount of miners drop off, so would the difficulty. Allowing fewer miners to complete for the same amount of transactions. Difficulty is part of the algorithm, it's artificial.

This. AFAIK, less miners = lower difficulty = more profit. In short, difficulty is adjusted according to the network hashrate, which means that Bitcoin (and virtually any other cryptocurrency) will always be profitable (by pool mining and/or solo mining). An equilibrium point.

This is in "theory" if the main mining pool like hashnest or bigger pools stopped what they were doing..

But since thats not the case, the best scenario to come out of the hard code # reached is the fees that can be produced.

In a home mining level, you`d still would be better off just sell stuff for bitcoin.

[msuhaimi2007]

No mining will be the end of Bitcoin for sure... but i dont think mining bitcoin will be end, like impossible to end. But perhaps there will be a competitor for bitcoin then maybe, just maybe bitcoin can 'end'.

But like many other say, there always be ppl who willing to do something not for sake of profit, but for fun...so yeah... long live BTC.

[notlist3d]

No mining will be the end of Bitcoin for sure... but i dont think mining bitcoin will be end, like impossible to end. But perhaps there will be a competitor for bitcoin then maybe, just maybe bitcoin can 'end'.

But like many other say, there always be ppl who willing to do something not for sake of profit, but for fun...so yeah... long live BTC.

This thread keeps going on and on.  But I think we can all agree no matter what there would be some holdouts running miners for fun, to keep network up.  So there will never be no miners.... so it never "ends" bitcoin.

I personally don't see bitcoin going to worth nothing, I think it will continue to grow.  So likely hashrate will grow more .. and more.  If you look at amount of gear mining right now we are pretty secure from going to no mining.