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

[putriliesma]

Indeed, because mining may be the price of bitcoin down because they get it for free, waiting and producing bitcoin. It's very easy on our capital appeals or looking for bitcoin by following the bounty and getting paid bitcoin.

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[sniper23]

Is this possible?

[South Park]

If Bitcoin prices drop below the cost of mining, I believe miners will be selling Bitcoin mining equipment cheaply. Unless Bitcoin is exploited, the Bitcoin trade will be slower, and Bitcoin will collapse.

That will be the worst option, since they are selling the only means that they have to recover their money, that is a terrible deal for them if you ask me but it will be a great deal for those that can get that equipment cheap, but you are overreacting you think that bitcoin will collapse for something so insignificant, if bitcoin could be destroyed by that then bitcoin would have died already.

[BTC-BTC-BTC]

"If Bitcoin prices drop below the cost of mining" miners just stop their operation and use the money they use for electricity to buy Bitcoin. Free market will be adjust according to the supply and demend. Nothing to be worry about to much.

[Lightsource]

I don't think it would really go lower than the price of mining, because the miners are going to be less likely to sell at a lost. It wouldn't make much sense to them. Mining factors into the whole supply and demand of crypto. Less miners willing to sell at a loss, then less Bitcoins available for sell, thus higher price.

[sniper23]

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

Lots of dramatic noises and "I told you..." "BITCOIN IS SCAM" comments. etc etc.

[Escan0r]

I think the miners don't really make the price of bitcoin fall so much but new investors who panic when they see the price of bitcoin go down and sell it. Because of this they only help bitcoin become more down because it sells when the price of bitcoin falls.

[odolvlobo]

I don't think it would really go lower than the price of mining, because the miners are going to be less likely to sell at a lost. It wouldn't make much sense to them. Mining factors into the whole supply and demand of crypto. Less miners willing to sell at a loss, then less Bitcoins available for sell, thus higher price.

That is a commonly stated misconception.

First, miners must sell most of their bitcoins, even at a loss, to pay for their operational costs: power, cooling, rent, labor, etc.

Second, when it comes to holding bitcoins, miners are no different than anyone else. They may or may not sell the bitcoins they hold at a loss.

Finally, miners are only a tiny part of the market. Miners sell only 1800 BTC of the 600,000 BTC traded every day. Their behavior has almost no effect on the price.

The reality is that if it costs a miner more to mine the bitcoins than to buy them, a rational miner will simply stop mining.

[BossMacko]

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 the btc price falls below the cost of mining some miners will exit It will temporarily cause blockchains discoveries to lengthen as the existing miners striuggle

Agree once that happen price will rise again since some of the miners are gone and only few miners will sell Bitcoin to gain back the cost of electricity and rigs.

[kolsernik]

I think just when the last 20% will be extracted and it is worth waiting for the increase in the price of bitcoin.

[butterflies04]

I think if Bitcoin falls below the price it costs to mine that some of the smaller guys will fall off however the big guys will keep rolling in hopes of future price gains.  If they made large expenditures they have no choice but to keep on going. 

[Sled]

I think if Bitcoin falls below the price it costs to mine that some of the smaller guys will fall off however the big guys will keep rolling in hopes of future price gains.  If they made large expenditures they have no choice but to keep on going. 

I hope that it will not happen because it will have a huge affect on the price of bitcoin because if the miners will not be able to make any profit anymore then it will cause for a lot of shutdowns on their mining rigs and that will become the reason for the network to become slower where the user will find something better and that will become the cause for bitcoin to fall down.

[South Park]

"If Bitcoin prices drop below the cost of mining" miners just stop their operation and use the money they use for electricity to buy Bitcoin. Free market will be adjust according to the supply and demend. Nothing to be worry about to much.

That will be a huge mistake, I have seen people say that the bitcoin they mined back in the day when it was not profitable to do so was in fact the most profitable of all, the miners have a lot of money they are not going to suspend their operations just because it is not profitable at this time, since they know the price of bitcoin will recover and the bitcoin they get can be sold for a profit in the future.

[odolvlobo]

"If Bitcoin prices drop below the cost of mining" miners just stop their operation and use the money they use for electricity to buy Bitcoin. Free market will be adjust according to the supply and demend. Nothing to be worry about to much.

That will be a huge mistake, I have seen people say that the bitcoin they mined back in the day when it was not profitable to do so was in fact the most profitable of all, the miners have a lot of money they are not going to suspend their operations just because it is not profitable at this time, since they know the price of bitcoin will recover and the bitcoin they get can be sold for a profit in the future.

Suppose your cost of mining is $6000 per bitcoin and the price of a bitcoins drops to $5000. Are you going to mine 1 BTC for $6000 or are you going to buy 1.2 BTC for $6000? A smart person would stop mining and buy the 1.2 BTC.

[political1907]

If price of bitcoin falls below the cost of mining, some people may quit mining. But their quits does not affect much. I don't know if we need to think too much about it because even if one person does mining, the system will continue to process.

[AniviaBtc]

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 the btc price falls below the cost of mining some miners will exit It will temporarily cause blockchains discoveries to lengthen as the existing miners striuggle

  Well, if we follow your point of reasoning Bitcoin price will be affected, But please, try the make a good research with comparative data to support your claim, base on the Hash Rate, Bitcoin miners increase to some degree, although the Bitcoin price on the market as posted goes down yet is more strong now and even more stable. Let's wait and see, let's be patient and monitor our investment.

[Orville_Brown]

"If Bitcoin prices drop below the cost of mining" miners just stop their operation and use the money they use for electricity to buy Bitcoin. Free market will be adjust according to the supply and demend. Nothing to be worry about to much.

That will be a huge mistake, I have seen people say that the bitcoin they mined back in the day when it was not profitable to do so was in fact the most profitable of all, the miners have a lot of money they are not going to suspend their operations just because it is not profitable at this time, since they know the price of bitcoin will recover and the bitcoin they get can be sold for a profit in the future.

Suppose your cost of mining is $6000 per bitcoin and the price of a bitcoins drops to $5000. Are you going to mine 1 BTC for $6000 or are you going to buy 1.2 BTC for $6000? A smart person would stop mining and buy the 1.2 BTC.

Survival of the fittest. That's why the system works so well. It's actually designed in an evolutionary way to ensure continual development and destruction of the old if they cannot keep up with the times. It's really clever if you think for a moment. A self-cleaning mechanism for when corruption or laziness or greed set in. It cuts all of the non-performers out at the bottom by making the mining process too costly for them, and then opens up a path for whoever wants to join in, providing they can do it better than those did before. Better keep yourself afloat or get out.

[TheClownSong]

I think if bitcoin price not profitable for miners, they must be wont to mine bitcoin anymore and no bitcoin transaction can be processed. It will hurt to bitcoin price. But in several country, there is miner have lower cost compare with others country because electricity cost more cheaper

[Kakawate]

In my opinion, Bitcoin mining is meant to come to an end, knowing that the number of bitcoin is limited, miners knows this, as well as the whole cryptocommunity, But it doesn't dictate the demand of bitcoin, if the consumers continues to value bitcoin or any other cryptocurrencies then the cryptocommunity will continue and bitcoin will survive. Of course by this time, bitcoin miners would have definitely find another way of earning money. I think even though the miners have completely mined all the bitcoins out there, the crypto world would continue. 

[Protonem]

In my opinion, Bitcoin mining is meant to come to an end, knowing that the number of bitcoin is limited, miners knows this, as well as the whole cryptocommunity, But it doesn't dictate the demand of bitcoin, if the consumers continues to value bitcoin or any other cryptocurrencies then the cryptocommunity will continue and bitcoin will survive. Of course by this time, bitcoin miners would have definitely find another way of earning money. I think even though the miners have completely mined all the bitcoins out there, the crypto world would continue. 

Bitcoin supply is limited, but I am sure that not all Bitcoin will be able to be mining with the assumption that mining costs will be even greater, while now prices are falling. The period of earning money from mining is certainly no longer a profitable thing.