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

[Ctn]

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. 

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[maxman190]

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.

[conected]

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

[el kaka22]

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/).

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.

[erikoy]

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

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.

[sinkfish]

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.

[Ucy]

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/).

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.

   
     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.

[ucingucingan]

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

[gambitcoin53]

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.

[BaraxLo]

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.

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.

[JimmyJeri]

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

[upsidedown75]

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.

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.

[odolvlobo]

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

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?

[bajigur894784]

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.

[Whosdaddy]

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.

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.

[ripthesystem]

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.

[Simsonie]

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.

[vasilev456]

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!

[btc_angela]

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.

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?

[Sedocoindev]

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/).

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