What is the estimated price of Bitcoin which will push miners to stop mining if its price dropped to...
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What is the estimated price of Bitcoin which will push miners to stop mining if its price dropped to uneconomical level?
mining-profitability
asked 2 hours ago
H Akhali
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What is the estimated price of Bitcoin which will push miners to stop mining if its price dropped to uneconomical level?
mining-profitability
asked 2 hours ago
H Akhali
162
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H Akhali is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
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That question is very difficulty to answer because there are far too many variables to consider. The network is very broad and the price of electricity, the availability of equipment and the price of equipment vary greatly. You also have to consider that if someone has free electricity and bitcoin is worth anything at all as a medium of exchange, they really have no reason not to mine (assuming they have hardware already and don't mind the noise).
– KappaDev
2 hours ago
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up vote
3
down vote
favorite
What is the estimated price of Bitcoin which will push miners to stop mining if its price dropped to uneconomical level?
mining-profitability
asked 2 hours ago
H Akhali
162
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H Akhali is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
What is the estimated price of Bitcoin which will push miners to stop mining if its price dropped to uneconomical level?
mining-profitability
mining-profitability
asked 2 hours ago
H Akhali
162
New contributor
H Akhali is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 2 hours ago
H Akhali
162
New contributor
H Akhali is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 2 hours ago
H Akhali
162
New contributor
H Akhali is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
asked 2 hours ago
H Akhali
162
asked 2 hours ago
H Akhali
162
162
New contributor
H Akhali is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
New contributor
H Akhali is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
H Akhali is a new contributor to this site. Take care in asking for clarification, commenting, and answering.
Check out our Code of Conduct.
That question is very difficulty to answer because there are far too many variables to consider. The network is very broad and the price of electricity, the availability of equipment and the price of equipment vary greatly. You also have to consider that if someone has free electricity and bitcoin is worth anything at all as a medium of exchange, they really have no reason not to mine (assuming they have hardware already and don't mind the noise).
– KappaDev
2 hours ago
add a comment |
That question is very difficulty to answer because there are far too many variables to consider. The network is very broad and the price of electricity, the availability of equipment and the price of equipment vary greatly. You also have to consider that if someone has free electricity and bitcoin is worth anything at all as a medium of exchange, they really have no reason not to mine (assuming they have hardware already and don't mind the noise).
– KappaDev
2 hours ago
That question is very difficulty to answer because there are far too many variables to consider. The network is very broad and the price of electricity, the availability of equipment and the price of equipment vary greatly. You also have to consider that if someone has free electricity and bitcoin is worth anything at all as a medium of exchange, they really have no reason not to mine (assuming they have hardware already and don't mind the noise).
– KappaDev
2 hours ago
That question is very difficulty to answer because there are far too many variables to consider. The network is very broad and the price of electricity, the availability of equipment and the price of equipment vary greatly. You also have to consider that if someone has free electricity and bitcoin is worth anything at all as a medium of exchange, they really have no reason not to mine (assuming they have hardware already and don't mind the noise).
– KappaDev
2 hours ago
add a comment |
1 Answer
1
active
oldest
votes
up vote
3
down vote
When a bitcoin was worth less than $10, miners were mining.
When a bitcoin was worth more than $15,000, miners were mining.
The key point is that there is no exact price that would make mining unprofitable. Bitcoin mining is a self-balancing system made up of individuals with different costs, and thus mining is sustainable at any price level.
If the price drops, then the miners who pay the most to mine a coin will become unprofitable, and they may stop mining. But this would only make it easier to mine coins for all the remaining miners, and so the network would find a new balance. A huge drop in price may cause many miners to shut off their rigs, but the disruption to block interval would only be temporary, as the network difficulty would adjust and soon blocks would continue to be found every ~10 mins on average.
In a very extreme case where an extremely significant portion of hashpower dropped off, then the block interval may become extremely long. But a situation like that is unprecedented, and in fact many miners may persevere and mine at a short-term loss, in order to maintain their long-term investment strategy, for ideological reasons, etc.
So TL;DR: the average cost of mining $1 worth of bitcoin will trend towards $1, so a lower BTC price just means that miners as a whole will spend less resources mining bitcoins.
EDIT: To be clear, a price of $0/BTC would in fact be unprofitable to mine, for hopefully obvious reasons. But anything above that will be sustainable.
answered 1 hour ago
chytrik
5,7102522
add a comment |
1 Answer
1
active
oldest
votes
1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
3
down vote
When a bitcoin was worth less than $10, miners were mining.
When a bitcoin was worth more than $15,000, miners were mining.
The key point is that there is no exact price that would make mining unprofitable. Bitcoin mining is a self-balancing system made up of individuals with different costs, and thus mining is sustainable at any price level.
If the price drops, then the miners who pay the most to mine a coin will become unprofitable, and they may stop mining. But this would only make it easier to mine coins for all the remaining miners, and so the network would find a new balance. A huge drop in price may cause many miners to shut off their rigs, but the disruption to block interval would only be temporary, as the network difficulty would adjust and soon blocks would continue to be found every ~10 mins on average.
In a very extreme case where an extremely significant portion of hashpower dropped off, then the block interval may become extremely long. But a situation like that is unprecedented, and in fact many miners may persevere and mine at a short-term loss, in order to maintain their long-term investment strategy, for ideological reasons, etc.
So TL;DR: the average cost of mining $1 worth of bitcoin will trend towards $1, so a lower BTC price just means that miners as a whole will spend less resources mining bitcoins.
EDIT: To be clear, a price of $0/BTC would in fact be unprofitable to mine, for hopefully obvious reasons. But anything above that will be sustainable.
answered 1 hour ago
chytrik
5,7102522
add a comment |
up vote
3
down vote
When a bitcoin was worth less than $10, miners were mining.
When a bitcoin was worth more than $15,000, miners were mining.
The key point is that there is no exact price that would make mining unprofitable. Bitcoin mining is a self-balancing system made up of individuals with different costs, and thus mining is sustainable at any price level.
If the price drops, then the miners who pay the most to mine a coin will become unprofitable, and they may stop mining. But this would only make it easier to mine coins for all the remaining miners, and so the network would find a new balance. A huge drop in price may cause many miners to shut off their rigs, but the disruption to block interval would only be temporary, as the network difficulty would adjust and soon blocks would continue to be found every ~10 mins on average.
In a very extreme case where an extremely significant portion of hashpower dropped off, then the block interval may become extremely long. But a situation like that is unprecedented, and in fact many miners may persevere and mine at a short-term loss, in order to maintain their long-term investment strategy, for ideological reasons, etc.
So TL;DR: the average cost of mining $1 worth of bitcoin will trend towards $1, so a lower BTC price just means that miners as a whole will spend less resources mining bitcoins.
EDIT: To be clear, a price of $0/BTC would in fact be unprofitable to mine, for hopefully obvious reasons. But anything above that will be sustainable.
answered 1 hour ago
chytrik
5,7102522
add a comment |
up vote
3
down vote
up vote
3
down vote
When a bitcoin was worth less than $10, miners were mining.
When a bitcoin was worth more than $15,000, miners were mining.
The key point is that there is no exact price that would make mining unprofitable. Bitcoin mining is a self-balancing system made up of individuals with different costs, and thus mining is sustainable at any price level.
If the price drops, then the miners who pay the most to mine a coin will become unprofitable, and they may stop mining. But this would only make it easier to mine coins for all the remaining miners, and so the network would find a new balance. A huge drop in price may cause many miners to shut off their rigs, but the disruption to block interval would only be temporary, as the network difficulty would adjust and soon blocks would continue to be found every ~10 mins on average.
In a very extreme case where an extremely significant portion of hashpower dropped off, then the block interval may become extremely long. But a situation like that is unprecedented, and in fact many miners may persevere and mine at a short-term loss, in order to maintain their long-term investment strategy, for ideological reasons, etc.
So TL;DR: the average cost of mining $1 worth of bitcoin will trend towards $1, so a lower BTC price just means that miners as a whole will spend less resources mining bitcoins.
EDIT: To be clear, a price of $0/BTC would in fact be unprofitable to mine, for hopefully obvious reasons. But anything above that will be sustainable.
answered 1 hour ago
chytrik
5,7102522
When a bitcoin was worth less than $10, miners were mining.
When a bitcoin was worth more than $15,000, miners were mining.
The key point is that there is no exact price that would make mining unprofitable. Bitcoin mining is a self-balancing system made up of individuals with different costs, and thus mining is sustainable at any price level.
If the price drops, then the miners who pay the most to mine a coin will become unprofitable, and they may stop mining. But this would only make it easier to mine coins for all the remaining miners, and so the network would find a new balance. A huge drop in price may cause many miners to shut off their rigs, but the disruption to block interval would only be temporary, as the network difficulty would adjust and soon blocks would continue to be found every ~10 mins on average.
In a very extreme case where an extremely significant portion of hashpower dropped off, then the block interval may become extremely long. But a situation like that is unprecedented, and in fact many miners may persevere and mine at a short-term loss, in order to maintain their long-term investment strategy, for ideological reasons, etc.
So TL;DR: the average cost of mining $1 worth of bitcoin will trend towards $1, so a lower BTC price just means that miners as a whole will spend less resources mining bitcoins.
EDIT: To be clear, a price of $0/BTC would in fact be unprofitable to mine, for hopefully obvious reasons. But anything above that will be sustainable.
answered 1 hour ago
chytrik
5,7102522
edited 59 mins ago
answered 1 hour ago
chytrik
5,7102522
answered 1 hour ago
chytrik
5,7102522
answered 1 hour ago
chytrik
5,7102522
5,7102522
add a comment |
add a comment |
H Akhali is a new contributor. Be nice, and check out our Code of Conduct.
H Akhali is a new contributor. Be nice, and check out our Code of Conduct.
H Akhali is a new contributor. Be nice, and check out our Code of Conduct.
H Akhali is a new contributor. Be nice, and check out our Code of Conduct.
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That question is very difficulty to answer because there are far too many variables to consider. The network is very broad and the price of electricity, the availability of equipment and the price of equipment vary greatly. You also have to consider that if someone has free electricity and bitcoin is worth anything at all as a medium of exchange, they really have no reason not to mine (assuming they have hardware already and don't mind the noise).
– KappaDev
2 hours ago