What happens when the price of Bitcoin falls below the cost of mining?

[Xising]

So, I was thinking, for the long term, even if Bitcoin goes below USD 6000, no worries, 5000, 4000, much the same. Hodl for the long run.

But, the vitality of Bitcoin is maintained by the continuous mining of Bitcoin. On an average these mining costs are USD 3000 to 3500 approximately. So, what happens when Bitcoin falls to that level?

Maybe the mining rigs won't mind bearing losses for a few months if they sense an upside later on. But, what if they don't, and start bailing out?

In that case, USD 3000 or whatever the lowest cost of mining Bitcoin will effectively become the null point. If Bitcoin falls to that point, downwards beyond that is a steep vertical cliff wall, and an inevitable fall to Zero.

I think the tipping point of mining activities would come, and it would most likely lessen at a big percentage the amount of people who are mining for coins. I say that because it would not make sense to continue on something that you would only get a loss in the end. For every business venture that people do in the cryptocurrency market, it's always aimed to get something back whether it's profit or asset. Also, I think that right now, it is slowly reaching that point because it has become harder to mine since the market cap of many coins are reaching its peak.

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[talkbitcoin]

you shouldn't really concern yourself with the cost of mining and the bitcoin price, some comments already explained why not so i won't repeat. the only thing that we do need to consider these days specially is the fact that people believe $6000 is the cost of mining and they also believe that price wouldn't fall below it because it will become impossible to mine. although wrong but this little belief makes $6000 even more stronger than before.

[alfs75]

So, I was thinking, for the long term, even if Bitcoin goes below USD 6000, no worries, 5000, 4000, much the same. Hodl for the long run.

But, the vitality of Bitcoin is maintained by the continuous mining of Bitcoin. On an average these mining costs are USD 3000 to 3500 approximately. So, what happens when Bitcoin falls to that level?

Maybe the mining rigs won't mind bearing losses for a few months if they sense an upside later on. But, what if they don't, and start bailing out?

In that case, USD 3000 or whatever the lowest cost of mining Bitcoin will effectively become the null point. If Bitcoin falls to that point, downwards beyond that is a steep vertical cliff wall, and an inevitable fall to Zero.

Will in this case if bitcoin fall because of mining ,there must be a big tendency thats theres a big factor effect in the worlds of cryptocurrency,i thinks its hard to recover when the markets value falls down and maybe all crypto coins would been affected,because mining is one of the big factor thats make the blockchain works and cause a big effect to the crypto worlds.

[niteroy]

Firstly, Chinese miners and equipment manufacturers for mining will not let Bitcoin price drop to a level where mining becomes unprofitable. Secondly mining equipment can be used not only for mining Bitcoin, but also for encryption, calculations for AI, modeling and so on. Therefore, I see no problems for miners associated with the drop in the price of Bitcoin.

[jarojak]

Well, I think some will stop mining and some other continue.  If nobody wants bitcoin anymore or bitcoin have no value, all miners will stop.  Nothing to worry about.

[SadaKalo]

Yes you are right. Bitcoin is future gold. Bitcoin future is bright. If bitcoin falls down over the mining cost, as a result, some of bitcoin mining country will stop there mining.

[sunlitit654]

If BTC continue to decreasing it's market value it will felt very bad effect to BTC mining because many lose their interest to mining then.

[MarbleAlligator]

I think it will be a very hard for bitcoin. I hope that bitcoin will not go to this much low. But anything can be happened in the crypto world. If it happens, it will be one of the worst times for bitcoin.

[boy130]

I feel like I've seen this kind of topic before but the cost of mining will readjust itself based on the bitcoin price right now, if the price keeps dropping then a lot of miner will stop mining, the difficulty goes down and the cost to mine will go lower aswell, the opposite will happen when the price goes up as there will be more people that want to mine that make the difficulty increase.

I agree with you. This is a dynamic process and if Bitcoin was to become too expensive to mine then the whole value would readjust itself.

[bloodyvio]

I think the bitcoin network hash power will drop dramatically
and that will lead to bitcoin being less decentralized than before
but I'm not sure that can happen
because the development of hardware for mining bitcoin will always be updated

[Jaguwar6]

It will going to be a disaster then. I think majority of people will leave the bitcoin market if this happens. But from my opinion it doesn't seems to be happened. Let's hope for the best for bitcoin.

[figmentofmyass]

But, the vitality of Bitcoin is maintained by the continuous mining of Bitcoin. On an average these mining costs are USD 3000 to 3500 approximately. So, what happens when Bitcoin falls to that level?

nonsense. if anything the cost of mining is about $6000 which has been calculated by silly speculators. but in reality cost of mining will always remain near bitcoin's current price because that is how mining and difficulty works.
if price goes up there will be more miners, more hashrate, higher difficulty, less profit, "higher cost of mining". and if price go es down it will be the opposite.

that's why these theories about mining cost are so silly. if difficulty goes up too fast, the more marginal miners will only mine at a loss for so long before shutting down. then difficulty adjusts downwards. it doesn't matter what it costs to mine BTC, because it can always cost less (or more).

if a miner is mining at a loss, why wouldn't they shut down? they can buy BTC instead wasting money on electricity, if they're so bullish.

[GlassBullet]

This price is quite low for bitcoin. Bitcoin is having positive feedbacks from all around the world. So i think bitcoin will have good time in upcoming day. I am waiting now for the bullish market to come.

[FrankWagner631]

If the value of the bitcoin falls deeper than their value, the diggers will no longer worry about upgrading the mining machines. By then, Bitcoin may be up again, as the user demand is larger than the supply.

[Balayashi]

Honestly i think mining will continue. Lot's of big farmers are already in total profit, and lots of them without any or almost with any electricity costs. It would be needed BTC to make a huge drop, probably to bellow 100 bucks or something, and even that...
Now there are several possibilities, since btc still is the strongest coin and leads the fluctuations of other coins, if all the other coins drops 2 and any of them takes the lead to become the primary trading pair, ppl would still continue to mine btc. If any other takes the lead, even there ppl wold continue mining as it will take a long path for btc to stop being one of the strongest coins.

[Horraygram]

You have ignored what so far has been mined is still there in the market. BTC will find its way even if the price hits $1000 or less. I don't think it will ever happen and price will rise day by day.

[jamesbondbd007]

There is no guarantee which cryptocurrency’s price will be increased or decreased. Recently the price of bitcoin was high. But it can be changed at any time again.

[blackrain321]

I don’t think that this market cycle will be the same in the next year also. Because there are ups and downs in the crypto market. So, the cycle will be changed also with the coin’s value.

[cizatext]

I believe that the mining cost goes majorly with the activities that goes on in the blockchain and at that if the price of bitcoin in the market goes down I believe the mining farm will also run on a less cost except for electricity supply.

[bitcoinhunter888]

Bitcoin is down now but it will dominate again like last year. Undoubtedly bitcoin is the leading currency in the world. According to the chart it seems that bitcoin will rise once again and we will happy for it.