Will the price of bitcoin rise as the cost of mining rises?
As everyone knows the difficulty of mining bitcoins increases each month. The difficulty can be expressed in TH/s. If you would like to know the current number, you can find it here: https://blockchain.info/
At the time I am writing this, the difficulty is 11'266'485 TH/s
You can see the historical hashrates by navigating from the same page .
How fast is the hash rate increasing? The table below sets it out.
What is the cost of mining bitcoin? Answer: It's around $1926 (assumes electricity cost of $0.12 and no amortization costs.
Assuming the hashrate continues to increase, we might see the cost of mining new bitcoins rise dramatically. Then table below shows you how the cost of mining would increase.
The line in yellow allows for the fact that the number of coins being reduced per ten minutes should halve to 6.25 per block from 12.5 coins at present.
In conclusion, the price of bitcoin should stay at or above the cost of production. If presnet trends continue, the future is bright!
Thanks for sharing this link https://blockchain.info/ I can see the hash rate is at 11,049,821.74 TH/s now and the daily number of transactions in my opnion this will only increse along with the price of bitcoin I think the future will indeed be bright @swissclive
hello friend, in my opinion, if the price of mining increases the amount of btc and its price too, thank you for sharing good information, greetings and blessings.
Mining bitcoin from my country is not the problem. Here electricity is very cheap. The problem would be to acquire the mining equipment, they are becoming more expensive and the mining is becoming more difficult.
If we talk about mining, we should focus on ecological currencies that can be mined from the cloud. as was the slogan of (EDR) Edinar coin. but unfortunately things changed and their price plummeted to the ground. I fell in his deception. I still hope to recover
Hi Marsella, I read your story about the EDR coin. It’s very sad. I am sorry for your loss. I have studied several alt-coins, and unfortunately, I think many of them will go to zero. This is why for the moment I only invest in bitcoin and steem.
Yes friend, I try not to think about it so as not to be sad. Thanks to that, I met Steemit, I met Steem and of course you and other people. Steemit has become my lifeline to keep me afloat. By the way, did you see what is happening with the BTC cash?
Oh my........ I. Just looked at btc cash, $1000! I am sad because I converted all my bcc cash to bitcoin a few weeks ago. Today I would get 2 or 3 times as many bitcoins.
Rays I had about $ 10 in BCH and I also did the same as you
@swissclive I have a question on exactly this topic actually: in case mining of BTC becomes unprofitable, and a relatively large percentage of BTC miners would go elsewhere (Litecoin mining, or serving IPFS nodes e.g.), will the BTC difficulty be adjusted downward then (easier hashing problems)?
PS, another question I'm having, on something completely different:
I wrote a very hefty blog post today, and it went viral as far as Author / Curation Rewards are concerned. Yet I wrote it to help newbies have guidance from it, so they will NOT leave the steemit ecosystem.
But I don't have a lot of views, I can't reach the beginners, and I have no follower audience yet to reach them. Would you mind giving my post a resteem maybe? It's not about the rewards, and I don't want to "self-promote" / "link drop" here, but if you go to my account page, it's my latest post. Thx for at least considering ;-)
Good question. I think for the short term, the miners would get into BCH because Bitcoin Cash is much cheaper compared to Bitcoin and has a very low Hash rate in comparison. Some miners would get into BCH and that'll make BTC slower. Bitcoin has no emergency difficulty adjustment and switching between BTC and BCH mining is the easiest switch that is possible. Same Hardware, same algorithm.
This could make BTC go through a major correction and the prices will adjust. At some point BTC will become profitable to mine again. I've also written about a new way to look at PoW mining. You can check it here and: https://steemit.com/cryptocurrency/@vimukthi/the-case-for-pow-as-a-service-komodo-dash-and-mining-algorithms-discussion
I'd like to see some discussion on the above topic I've mentioned. Thanks for your time.
I'm only a Steemian for about two 2 weeks now, and I haven't been "into crypto" before 1 month ago. That's the honest truth. Been studying A LOT about all things crypto the last month, and the first in-depth article I ever read on crypto was the original Bitcoin: A Peer-to-Peer Electronic Cash System article by Satoshi Nakamoto. First thing I thought about it was "hmm, POW? What if one gigantic party - say Google, or Amazon AWS, or Facebook - would take a 51% mining share? ... What would happen to BTC's market cap?".
Yes, I'd like that discussion addressed as well!
PS: I don't have sufficient voting power to upvote your comment properly, but it is remarkable nonetheless.
Glad to see some new blood on steemit. Welcome aboard! I'm also little new here. I'm getting close to 4 months. As I mentioned here I'm pretty new too. I got in mid 2017 though I had known Bitcoin for some time. It's just getting into crypto isn't easy. Not many fiat gateways that are easy and highschool dropout friendly.
Don't worry about voting power. Stay engaged and you'll grow. I can't garuntee your growth will be correlated with the amount of work you put in. It's not true. But you can make money anywhere. There isn't a single community that is this big and also this good. That's what matter the most to me. Money is the bonus for me.
If anyone gets 51%, then they can control everything, including changing the blockchain ledgers and they could thus change transactions at their will. If they started to do that, it would destroy bitcoin.
I don’t think it will happen. It would cost billion to buy the computing power. I think crooks have better things to do with their billions.
The hashrate can go up or down. If the bitcoin price falls, and some miners leave, then the hashrate will fall to keep frequency of block creation at approx one every ten minutes. As long as mining is profitable, the hash rate will go up and the cost of mining should go up.
Will check your blog.
My post is now trending, I can't believe it... I got over 500 messages already at the steemit / discord / skype chats. From newbies, dolphins, whales even. I literally get goosebumps from it...
@scipio, So it looks like my re-steem helped you! Well deserved. None of my posts ever went viral. One day maybe. Tell me, what is it about your post that helped it trend?
Can you also elaborate at my comment to @vimukthi above? Because that 51%-BTC-stake-problem gives me even more goosebumps about the future of crypto...
But will the Bitcoin mining become obsolete soon, after most of the coins get discovered, and the difficulty of finding new ones will get higher and higher? I mean, after 20milions of Bitcoins get discovered, then would it be profitable to continue to mine as the chances of finding a new block will be extremly low?
If the price is high enough, mining will continue. If not, they will mine for transaction fees.
Oh, but doesn't this mean that the fees will increase? Also, wouldn't it be more efficient if Bitcoin will shift to another mining algorithm like proof of stake? I mean there are a lot of voices complaining about the huge energy consumption of Bitcoin mining...
Good morning,,friends Steemit,,vote me mrazi,,friend
@mrazi (42) This comment is for your benefit so you don't find others downvoting or flagging you.
I have noticed that you have made a number of very short comments on other blogs, which are similar in style to the one above. They don’t really add anything to the discussion of the topic.
Please help keep Steemit free of spam posts.
If you like a post, it is generally sufficient to upvote it unless you want to join in the debate.
You didn’t bother to vote for this blog.
Short comments like “awesome”, “nice post” “amazing post”, “really helpful”, “nice blog bro” or “thanks for sharing” are generally not seen as part of the debate on the topic ,and if repeated across multiple posts, may be interpreted as spam. You seem to be repeating the same kind of comment on many blogs, without any mention of the subject matter.
This kind of behavour looks like spam and you risk others interpreting it that way and flagging you.
Another thing to be careful of is asking other people to upvote or follow. This is also counter-productive and irritating. Asking for upvotes and follows is against Steemit etiquette. Some users may downvote, mute, or flag you if you do this.
Downvotes or flags can lower your reputation, can result in the removal of rewards, and may result in your posts not being seen by others.
Don’t worry, I haven’t flagged or downvoted you. I’ll give you the benefit of the doubt that you were genuinely trying to encourage the poster. An upvote would have been sufficient.
I often reward intelligent comments. I have a lot of Steempower. A 100% upvote from me is worth hundreds of times a normal upvote. I hope I can reward you for intelligent and thought provoking posts in the future. Good luck in your future posts!
(Other bloggers, please let me know whether you agree or disagree with my comment. If you disagree, feel free to upvote the person who left the short comment, as I won’t be doing so.)
Wow! Have you created a standard message against spam? :D
Thank you for this helpful information.
But if there isn't much difference in the cost of mining and price of bitcoin in future , the miners might stop mining bitcoin.
Correct me if I am wrong
Good post:)!!Thank you♪
a good content leads to a good popularity.
I've resteemed your post!
Oh, my God! Every move i make in this crypto treasure island, it seems like a rock is ahead of me.
I was looking to going into bitcoin mining in a lower scale with a bit of cheap electricity at my disposal.
I am a bit at a loss at to buying a single miner like S9 or Avalon for bitcoin or something that can mine bitcoin and litecoin or anyother coin.
@swissclive please what do you advice i do with my small scale mining adventure?
I have never bought a mining rig. I think it would be fun to own one. However I read that the S9s are hard to get your hands on, and they are noisy and hot. Is that OK for your home? I tried mining with Hashnest for a few weeks. The advantage is instead of buying a rig, you can buy and sell hashpower. It was profitable for me, but you have counter-party risk.