Buying ASIC miners right before the halving seems smart to me. I've seen folks do this with both ASICs and GPUs, but they end up selling when the bear market hits. It's like a loop, losing value again and again. What’s the long-term plan for Bitcoin mining? Can this cycle keep going forever?
What Happens When Bitcoin Block Rewards Decrease?
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If Bitcoin's price keeps climbing like before, we'll be fine. Adoption is key. Transaction fees will take over as the block reward shrinks. Miners who can't profit will just drop out, and it’ll be better for those who stick around.
Yeah, I think mining will stay pretty much the same, but block rewards drop every halving. If demand stays steady and supply dips, price should go up. Everyone knows halving boosts demand, which tends to send prices skyrocketing. Even when all Bitcoins are mined, miners will still get fees.
CalmFalconMember
Posts: 262 · Reputation: 176
#4Jan 15, 2021, 07:49 AM
Not sure I buy that. Why is it best to buy right before a halving? You think profits will be huge for just a few months? A lot of factors matter, like electricity costs. If you have cheap power, any time can be a good time to invest. Correct me if I'm wrong.
quantumguruNewbie
Posts: 49 · Reputation: 24
#5Jan 15, 2021, 12:22 PM
Mining fees will come from transaction fees if mining isn't profitable anymore. As long as Bitcoin exists, there will be miners. Some have low electricity costs, so they’ll keep mining. Those who can’t profit will just quit. Simple.
Does that mean fees could get so high that everyday transactions don't make sense anymore?
Saw an article on what's gonna happen when all 21 million Bitcoins are mined. It talks about your question too. Check it out if you wanna know more. Mining profit will depend on Bitcoin adoption down the line.
Why stress about something so far off? As long as Bitcoin has some value and at least one person uses it, miners will have something to gain. The system doesn’t need tons of miners, even a single old computer can keep the blockchain alive. Profitability will dictate the hashrate.
This question pops up now and then. Simple answer: tx fees will be the main thing. Sure, mining will decline. Bitcoin price usually compensates, but not exactly equally. It might get less profitable over time, pushing out some whales while hobbyists continue.