what happens when all bitcoins are mined ?

[vortexz]

what happens when all bitcoins are mined ?as far as i know the mining ascis are needed to complete the transaction of bitcoins between wallets, but when all coins will be mined all ascis will be shut down because there is no need for them anymore,right ?
how will the transactions be made then withtout the asics to process them ?

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[deepceleron]

The blockchain reward halves every 210000 blocks, so before the reward becomes 0 BTC around 2140, it will have already been 0.00000008, 0.00000004, 0.00000002, and 0.00000001 BTC for eight years. The economy will have to transition to a reward based on transaction fees long before the reward actually becomes zero.

The question is then one of investment vs greedy reward. Will companies who have a million-dollar-a-year bitcoin business invest in mining just to defend the blockchain against attack? Will the fees (which have been drastically reduced recently way beyond sustainable levels) create enough incentive on their own to continue mining with strong enough difficulty? Will there be $1000 in fees per block because each bitcoin is worth a luxury house? All of these are unknown, but the rules of the currency and the money supply inflation rate are well known for hundreds of years and available for all to plan for the future, unlike all government currencies.

I should add that the mining difficulty is ridiculous right now because $1.8 Million worth of BTC is being printed every day and goes solely to the miners. A lot of the mining capacity online now was planned when the value was only increasing exponentially (up to $1000/BTC and beyond), not the finally stable $500/BTC we've had for six months.

[vortexz]

thanks for great explanation.
indeed, this is hard times for bitcoin right now, i hope everything goes back to normal soon.
hope to see BTC rise above 1000 $ anytime soon.

[dothebeats]

I've once read an article about the same question posed in this thread: what will happen if all the 21m coins were mined? As most of us know, the transactions on the blockchain are moved by the miners. The incentive that keeps the miners processing these transactions is 25 btc per block as of the current time. However, this reward is designed to halve every halving (forgive me but I forgot how many blocks were needed before the halving take place :v), so as to prevent a fast minting of coins. So why would the miners continue to process these transactions if in the end they cannot even pay the bills with the rewards they are getting? That's when the problem occurs. The miners' rewards weren't enough to keep them from running these miners and helping the transactions move, unless the reward system is change: a reward system that would benefit the miners, the users, and the network as a whole.

[botany]

I've once read an article about the same question posed in this thread: what will happen if all the 21m coins were mined? As most of us know, the transactions on the blockchain are moved by the miners. The incentive that keeps the miners processing these transactions is 25 btc per block as of the current time. However, this reward is designed to halve every halving (forgive me but I forgot how many blocks were needed before the halving take place :v), so as to prevent a fast minting of coins. So why would the miners continue to process these transactions if in the end they cannot even pay the bills with the rewards they are getting? That's when the problem occurs. The miners' rewards weren't enough to keep them from running these miners and helping the transactions move, unless the reward system is change: a reward system that would benefit the miners, the users, and the network as a whole.

Halving occurs every 4 years. I presume the price would move up sufficiently to cover the block halving.

[waterpile]

asic won't be useless they will use it to mine other altcoins

[K128kevin2]

We'll all be dead when that happens, who cares. Anticipating future problems and thinking ahead is dumb. It's better to just do things blindly without thinking about the consequences.

[kittycatbtc]

We'll all be dead when that happens, who cares. Anticipating future problems and thinking ahead is dumb. It's better to just do things blindly without thinking about the consequences.

Legit, but how do I get rich NOW then?

[pawel7777]

We'll all be dead when that happens, who cares. Anticipating future problems and thinking ahead is dumb. It's better to just do things blindly without thinking about the consequences.

What's dumb is your post.

If any currency was, by design, to die after some certain time (even 100 years) it would be already reflected in the current price (likely to be close to zero). It could have some value if it had really useful, practical functions, but still would be worthless as a long term investment/store of value.

[Coinshot]

Bitcoin will be redundant by that time. There will be better technologies which will overtake this. PoW already shows signs of having lot of trouble.

[pawel7777]

Bitcoin will be redundant by that time. There will be better technologies which will overtake this. PoW already shows signs of having lot of trouble.

But there already are better crypto currencies! faster, safer, PoS, X11, hybrids, better distributed, with better names etc.
First altcoin was Litecoin and it was already an improvement over bitcoin, but it didn't overtake bitcoin (not to mention that it was never LTC's devs intention).

Bitcoin doesn't have to be 'the best', it has to be 'good enough'. There will never be the ultimate 'the best' crypto, because there will always be a room for improvements. And if we all were to jump from one coin to another (new and better) one, all concept would collapse.

So the only question is: "is bitcoin good enough?"

[redsn0w]

Bitcoin will be redundant by that time. There will be better technologies which will overtake this. PoW already shows signs of having lot of trouble.

But there already are better crypto currencies! faster, safer, PoS, X11, hybrids, better distributed, with better names etc.
First altcoin was Litecoin and it was already an improvement over bitcoin, but it didn't overtake bitcoin (not to mention that it was never LTC's devs intention).

Bitcoin doesn't have to be 'the best', it has to be 'good enough'. There will never be the ultimate 'the best' crypto, because there will always be a room for improvements. And if we all were to jump from one coin to another (new and better) one, all concept would collapse.

So the only question is: "is bitcoin good enough?"

Bitcoin is  : First come, first served ! So it is not necessary to add or modify its system .

[snappa4ever]

Bitcoin will be redundant by that time. There will be better technologies which will overtake this. PoW already shows signs of having lot of trouble.

But there already are betterother crypto currencies! faster, safer, PoS, X11, hybrids, better distributed, with better names etc.
First altcoin was Litecoin and it was already an improvement over bitcoin, but it didn't overtake bitcoin (not to mention that it was never LTC's devs intention).

Bitcoin doesn't have to be 'the best', it has to be 'good enough'. There will never be the ultimate 'the best' crypto, because there will always be a room for improvements. And if we all were to jump from one coin to another (new and better) one, all concept would collapse.

So the only question is: "is bitcoin good enough?"

FIFY

Just because something is faster to confirm does not mean that something is better. I would personally actually argue that the opposite is true because of the fact that shorter confirmation times means more orphaned blocks, and potential long orphaned chains, which leads to more uncertainty and less number of miners wanting to mine on the network in the first place

[dothebeats]

I've once read an article about the same question posed in this thread: what will happen if all the 21m coins were mined? As most of us know, the transactions on the blockchain are moved by the miners. The incentive that keeps the miners processing these transactions is 25 btc per block as of the current time. However, this reward is designed to halve every halving (forgive me but I forgot how many blocks were needed before the halving take place :v), so as to prevent a fast minting of coins. So why would the miners continue to process these transactions if in the end they cannot even pay the bills with the rewards they are getting? That's when the problem occurs. The miners' rewards weren't enough to keep them from running these miners and helping the transactions move, unless the reward system is change: a reward system that would benefit the miners, the users, and the network as a whole.

Halving occurs every 4 years. I presume the price would move up sufficiently to cover the block halving.

Is that 4 years a constant time frame in which a halving occur? I don't think so. The time that it takes the bitcoin network to arrive in a halving greatly depends on the global hashrate. So I suppose that 4 years is just an estimate, right? I want to know how many blocks does the network need to solve before a halving occurs.

Lemme google it myself. :v

[dothebeats]

I've once read an article about the same question posed in this thread: what will happen if all the 21m coins were mined? As most of us know, the transactions on the blockchain are moved by the miners. The incentive that keeps the miners processing these transactions is 25 btc per block as of the current time. However, this reward is designed to halve every halving (forgive me but I forgot how many blocks were needed before the halving take place :v), so as to prevent a fast minting of coins. So why would the miners continue to process these transactions if in the end they cannot even pay the bills with the rewards they are getting? That's when the problem occurs. The miners' rewards weren't enough to keep them from running these miners and helping the transactions move, unless the reward system is change: a reward system that would benefit the miners, the users, and the network as a whole.

Halving occurs every 4 years. I presume the price would move up sufficiently to cover the block halving.

Is that 4 years a constant time frame in which a halving occur? I don't think so. The time that it takes the bitcoin network to arrive in a halving greatly depends on the global hashrate. So I suppose that 4 years is just an estimate, right? I want to know how many blocks does the network need to solve before a halving occurs.

Lemme google it myself. :v

 Found what I've been looking for. Yep, the 4-year time frame is correct. Apologies for my ignorance. I think I'm losing track of the basics. :v

[Oscilson]

thanks for great explanation.
indeed, this is hard times for bitcoin right now, i hope everything goes back to normal soon.
hope to see BTC rise above 1000 $ anytime soon.

If you have a miner with 1GH/W hash efficiency, and $0.1/kWh electricity price, the revenue is about 3 times the electricity cost. So you will keep on mining and selling the BTC. So the price will be suppressed as the miners are still profitable at present difficulty level and BTC price.

[deepceleron]

Is that 4 years a constant time frame in which a halving occur? I don't think so. The time that it takes the bitcoin network to arrive in a halving greatly depends on the global hashrate. So I suppose that 4 years is just an estimate, right? I want to know how many blocks does the network need to solve before a halving occurs.

Lemme google it myself. :v

 Found what I've been looking for. Yep, the 4-year time frame is correct. Apologies for my ignorance. I think I'm losing track of the basics. :v

The block reward is actually halved every 210,000 blocks. At the target rate of 6 blocks per hour * 24 hours per day, that is 1458.33 days between halving (3 years 363.3 days). While the hashrate is growing, the blocks occur faster than this rate (due to lag in difficulty adjustment), but when the hashrate decreases, the block rate is lower. The hashrate may continue to grow forever due to technology advances over 100 more years, or it may end up decreasing after the reward doesn't pay electric bills of the latest tech. If the huge increases level off, we will stay close to this schedule:


Block #  Year  Reward/Block Total_Reward_For_Period
-------  ----  ----------  ------------------------
0000000  2009  50.0000000  10500000
0210000  2013  25.0000000  5250000
0420000  2017  12.5000000  2625000
0630000  2021  6.25000000  1312500
0840000  2025  3.12500000  656250
1050000  2029  1.56250000  328125
1260000  2033  0.78125000  164062.5
1470000  2037  0.39062500  82031.25
1680000  2041  0.19531250  41015.625
1890000  2045  0.09765625  20507.8125
2100000  2049  0.04882812  10253.9052
2310000  2053  0.02441406  5126.9526
2520000  2057  0.01220703  2563.4763
2730000  2061  0.00610351  1281.7371
2940000  2065  0.00305175  640.8675
3150000  2069  0.00152587  320.4327
3360000  2073  0.00076293  160.2153
3570000  2077  0.00038146  80.1066
3780000  2081  0.00019073  40.0533
3990000  2085  0.00009536  20.0256
4200000  2089  0.00004768  10.0128
4410000  2093  0.00002384  5.0064
4620000  2097  0.00001192  2.5032
4830000  2101  0.00000596  1.2516
5040000  2105  0.00000298  0.6258
5250000  2109  0.00000149  0.3129
5460000  2113  0.00000074  0.1554
5670000  2117  0.00000037  0.0777
5880000  2121  0.00000018  0.0378
6090000  2125  0.00000009  0.0189
6300000  2129  0.00000004  0.0084
6510000  2133  0.00000002  0.0042
6720000  2137  0.00000001  0.0021
6930000  2141  0.00000000  0

Total coins distributed:   20999999.9769

[TradersWay.JC]

No one will be mining in 70 years unless Bitcoin is worth a ton of money. So it is do or die for the Bitcoin exchange rate. Otherwise we will never mine all of them.... unless we will have a difficulty decrease 

[botany]

No one will be mining in 70 years unless Bitcoin is worth a ton of money. So it is do or die for the Bitcoin exchange rate. Otherwise we will never mine all of them.... unless we will have a difficulty decrease 

Miners can make a lot of money in transaction fees as well. 

[realdope]

No one will be mining in 70 years unless Bitcoin is worth a ton of money. So it is do or die for the Bitcoin exchange rate. Otherwise we will never mine all of them.... unless we will have a difficulty decrease 

You don't get it. There will always be someone doing the job, because if few people are doing it, the ones doing it will get a lot of reward. It gets itself balanced. Satoshi had it all planned.