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

[Hui8]

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.

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.

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[aardvark15]

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/).

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.

[Xising]

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 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.

[RudeeTam]

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.

[VclDm]

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.

[noictib]

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 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 .

[w33man]

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/).

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.

[minthit]

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!

[mel0924]

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/).

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.

[CHENIEN]

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.

[cryptojac17]

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 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 .

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.

[paxmao]

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.

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.

[Kingofbitcoin12345]

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..

[budakjawa]

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/).

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.

[jaylhynne018]

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 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!

[dothebeats]

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.

[JerryJam]

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.

[pogiparin]

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

[Basmic]

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.

[diva.man]

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.