80% Of All Bitcoins Already Mined

[DillZ]

⁠80% Of All Bitcoins Already Mined, Only 4.2 Million Coins Left Until Supply Cap
With 80% of all BTC now mined, the difficulty and cost of mining will go up

so bitcoin mining not more profitable ?

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[NiceSoft12]

tough question, who knows, if price goes down more it could be catastrophic to mine....

[mk4]

Sure, the supply is going down for sure. But the demand still might be steadily rising(can't confirm, I don't have data). But at the same time, if the supply is going down, theoretically the price should rise more in the future as there will be less and less bitcoin that can be bought.

[stompix]

⁠80% Of All Bitcoins Already Mined, Only 4.2 Million Coins Left Until Supply Cap
With 80% of all BTC now mined, the difficulty and cost of mining will go up

so bitcoin mining not more profitable ?

Why would the difficulty and the cost of mining go up?
Why?

The cost of mining is the same, the power you need to have your miners working 24/7.
That is not influenced by the BTC price nor by the difficulty.

Difficulty is influenced by how many mining rigs are working, if there is profit to be made, it will attract more and difficulty will go up.
If there is no profit, miners will turn them off and difficulty will go down.

It's all about the price. Nothing else.

[aleksej996]

⁠80% Of All Bitcoins Already Mined, Only 4.2 Million Coins Left Until Supply Cap
With 80% of all BTC now mined, the difficulty and cost of mining will go up

so bitcoin mining not more profitable ?

None of these things have correlation with each other. Yes most coins are mined. Difficulty and cost is a relative thing, it depends on how much of mining you want to do, it can be very easy and cheap, but you will earn smaller profits. But for the total network, yeah, it is getting more expensive as there is more competition for it so it is harder to get the same portion of the hashpower, but this has nothing to do with the amount of coins being mined, it is just the rise in popularity of Bitcoin that brings more miners.

Bitcoin mining, just like any other business in capitalism is always profitable, unless someone was losing money on it just so he can get rid of competition by selling his product for cheaper than anyone can produce them. Product here is bitcoins and as bitcoins don't need to be created for you to be able to buy some (others can sell theirs) it wouldn't be enough to just get rid of mining competition but of exchanges as well.

[mOgliE]

Hi,

Actually, even without considering the "available amount" of bitcoin, mining is already unprofitable in most Western countries. Just because the price you pay for the electricity you use for mining is higher that the benefit you get from mining itself.

As for the amount of bitcoin, the question is also interesting... What will happen when it's "done"? What do you think? I can't figure out such situation even though I know it WILL happen...

[HabBear]

⁠80% Of All Bitcoins Already Mined, Only 4.2 Million Coins Left Until Supply Cap
With 80% of all BTC now mined, the difficulty and cost of mining will go up

so bitcoin mining not more profitable ?

Welcome to the party, DillZ. Yes. Bitcoin mining for the purpose of collecting the block reward will become less profitable going forward...which is part of the reason why fees have gone up.

None of these things have correlation with each other. Yes most coins are mined. Difficulty and cost is a relative thing,

Sorry, friend, you are wrong. There is a direct correlation between the size of the block reward and the profitabiliy of mining bitcoin. The income for mining bitcoin is the block reward and the transaction fees. If one of those income streams is going down (literally cut in half every 4 years or so), then there is less profit to be gained from that income stream.

That is a direct correlation.

[xdrpx]

With only 20% left there's only so much that miners can mine with present day mining hardwares and it'll get slower and slower to mint new Bitcoins as the block rewards get smaller. This will eventually make Bitcoins rare to procure, making new coins less avialable to traders / buyers. Now this could eventually drive the price up sharply cause this would make Bitcoin like gold where there's limited supply of gold and more demand. Miner could hence profit just as much as they are now. This trend will continue till all Bitcoins have been mined and then they can only earn from fees for mining the blocks.

[cungtrongdung4]

⁠80% Of All Bitcoins Already Mined, Only 4.2 Million Coins Left Until Supply Cap
With 80% of all BTC now mined, the difficulty and cost of mining will go up

so bitcoin mining not more profitable ?

It can come from mining, trading, bounty, ico.

[aleksej996]

Sorry, friend, you are wrong. There is a direct correlation between the size of the block reward and the profitabiliy of mining bitcoin. The income for mining bitcoin is the block reward and the transaction fees. If one of those income streams is going down (literally cut in half every 4 years or so), then there is less profit to be gained from that income stream.

That is a direct correlation.

Not really. I wouldn't call it a direct correlation. Especially as the amount of coins mined and block reward are not that tightly correlated, only every 4 years, but sure, obviously they are. A very important point is that the amount of BTC earned doesn't give a direct correlation to profitability as the price of those coins are a lot bigger factor. In future, when the price is more stable, then yes, but now, not so much. This is obvious form the fact that although block reward halves every 4 years, the price of those coins have risen in values more than twice every time by now.

Of course the main point being here is that that the price of the block reward doesn't affect profitability either, profitability is determined depending on the cost as well, not just the reward and that part is pretty static due to free market and balance of supply and demand.

[SaShiRaJaVu]

⁠80% Of All Bitcoins Already Mined, Only 4.2 Million Coins Left Until Supply Cap
With 80% of all BTC now mined, the difficulty and cost of mining will go up

so bitcoin mining not more profitable ?

The cost of mining is on the higher side always and if you invested a good amount of money then you can reap the benefits and with the price of bitcoin at this level is always profitable and even if all the coins are mined the transaction charges per block will always encourage them to keeping on doing the process and if they find it is not profitable miners will cut down the loss.

[NeuroticFish]

so bitcoin mining not more profitable ?

In 2015, when Bitcoin was 200$-ish, the mining was barely profitable. Still, profitable.
Since then Bitcoin rose 65+ times and tx fees rose ~40 times. The number of tx have rose by a great deal too. All this means profit.
I don't know how much the difficulty have increase, but I am almost certain that right now Bitcoin mining is way more profitable than in 2015.

[BartS]

⁠80% Of All Bitcoins Already Mined, Only 4.2 Million Coins Left Until Supply Cap
With 80% of all BTC now mined, the difficulty and cost of mining will go up

so bitcoin mining not more profitable ?

The difficulty is going to keep on climbing as more powerful miners are devised, however what it is going to really affect the miners in the future is the diminishing of the block reward this is going to make miners to become even more centralized as only the most efficient miners will be able to get profits and since china seems to want miners out they will need to move to other countries with cheap electricity.

[John Langut]

⁠80% Of All Bitcoins Already Mined, Only 4.2 Million Coins Left Until Supply Cap
With 80% of all BTC now mined, the difficulty and cost of mining will go up

so bitcoin mining not more profitable ?

There will always be transaction fees.

Do you think transaction fees will sky rocket as the block reward goes towards zero? And if that happens, is that something Satoshi Nakamoto had anticipated?