What happens when we mine the last Bitcoin?
To give a reasonable answer to this question, we first have to make a quick detour into the basics of mining:. Every blocks so roughly every 2 weeks , the mining difficulty is adjusted, to account for the amount of people mining and therefore hashpower in the system. The more people mine, the higher the difficulty, making it harder for each one to find the next block. Difficulty is always adjusted to a level that in average it will take about 10 mins to find a new block.
Now if for some reason all miners stopped mining, the difficulty level would drop drastically with the next update. Lower difficulty would then mean that you could mine with your own computer and generate Guess how long it would take until everybody would enjoy that and start mining again? When this is perfectly clear, we can deduce what the first thing is that will happen after everyone stops mining.
Next, we can speculate about what happens after that point in time. In this answer, I simplify a lot on setting the context. How is a transaction created in the bitcoin network? The first step is that the sender of the bitcoin creates a data structure that contains information about where the bitcoins for this transaction come from and where they should go. They put a digital signature on this transaction to authorise the transaction. After creating this data structure, it is broadcast onto the network, so it will be there for everyone to see.
To compute the digital signature, they need a private key. This key is mathematically linked to the address of the sender of the bitcoins and is stored in their wallet. Since they are the only one that knows the private key, anyone that sees the transaction with the signature can know with certainty that it was created by the owner of the sending address. Miners receive a lot of transactions. They batch them together into blocks.
However, we made the agreement that a block is only considered valid if the value you get after hashing the block header is lower than a certain threshold. That means that miners will use a brute force method to find a block that meets this criterium. Whenever a valid block is found, it is broadcast onto the bitcoin network. Discarding means: act as if it has never existed.
Try it. And afterwards check whether you come to the same conclusion as I did. So, when mining stops, transactions can still be created and broadcast onto the network.
However, when there is nobody that creates blocks to differentiate among transactions that are spending the same bitcoins, there will be no way to be certain that any bitcoin you have received are not also being sent to someone else. Up to here, this is the answer to your question. Thinking further, what happens after this point in time, assuming there are still people that want to use bitcoin?
Assuming some people still want to use bitcoin, what happens next? What happens next is pure speculation. They can start mining themselves. When they find a valid block, the transaction is mined. However, compared to the current mining landscape, a single miner will have a really insignificant amount of mining power. So it will probably take way longer than ten minutes to find a block.
In fact, it could be months or even years. Whenever more miners join the bitcoin network or they start using more powerful mining hardware, they can increase the speed with which they are searching for values to create valid blocks.
Whenever miners leave the network, this speed goes down. This would result in blocks being created more often or less often. However, the designers of bitcoin included a mechanism to try to average out the block creation frequency to one block every ten minutes. How does this mechanism work? Every th block that has been created, the network looks back to see how long it took to create those blocks.
If it took longer than 2 weeks, the network assumes there is now less computational power dedicated to mining. If it took less time, the network assumes there is more computational power available.
The network now makes an estimate of the available computation power and adjusts the threshold talked about before, such that the block creation frequency will become one block per ten minutes on average. Because this threshold can be adjusted and makes it more or less difficult to find a block, we call it the difficulty.
When mining power has doubled, the blocks will be created within a single week, after which the threshold is already adjusted. However, when the mining power has halved, it will take four weeks to create blocks, so it will take longer to adjust to decreasing mining power! Taken to the extreme, if only one person or a small group of persons is mining, such that they can find a block once a month, it will take years to create blocks.
After that, the difficulty will be severely reduced, such that a new block will be mined again every ten minutes on average. Well, in fact, yes there is! The network is made up of a lot of nodes and some of those nodes are miners.
All those nodes agree on the rules that make up the bitcoin protocol. Rules like the difficulty, the threshold, what is valid and what is not. You cannot unilaterally decide to play the bitcoin game with a different set of rules. The rest of the network will not accept you as being one of them. However, if a couple of them decide to play by a different set of rules, they will form a separated network.
Imaging that in this network, a group of 20 nodes can decide to include one additional rule, saying that at block number N wherever we are at this point in time we change the difficulty to some value we agree upon. Now, they can start the mining process and find some new blocks. After creating blocks, the original rule of difficulty readjustment kicks in and the network is steered towards one block per ten minutes on average again. We created a hard fork. The interesting thing is: one network is waiting for years to create enough blocks to continue operation, while the other network is churning along cranking out blocks and processing transactions.
Quite probably, people on the first network will start accepting this one additional rule, so they can become part of the operational network. So there you go, the long story about what happens after everybody stops mining on the bitcoin network. It can not be seen on the daytrade, but if to look in general during last months, altcoin market is really slightly recovering. So, better invest in some Presales on pre-IEO stages, but first of all a really thorough analysis is needed.
When I spend some days on that, I have marked some Bitcoin miners are paid with a combination of newly issued units of currency and the transaction fees for the transactions the miner includes in the block. The system is designed to initially reward miners with a large amount of newly issued bitcoin, because it started when bitcoin was not worth very much relative to other forms of money.
Every four years worth of blocks, the amount of newly issued bitcoin awarded to miners is cut by half. This is how the system guarantees that there will only be 21 million units of currency. Over time, the value of bitcoin goes up, and the system bootstraps itself, steadily shifting the mining incentive away from newly issued bitcoin and toward transaction fees.
Mining difficulty is adjusted totally differently. Every two weeks worth of blocks, mining difficulty is adjusted so that the average time between blocks remains at ten minutes. Difficulty is adjusted either up or down as needed, with limits on how large the change can be. This means that there will always be miners, because as difficulty rises some may drop out, but then when difficulty drops new miners come in.
This has resulted in an incredibly strong bitcoin mining ecosystem where competition drives the development of more and more efficient ways of mining bitcoin with as little power as possible. This bitcoin mining ecosystem has been running nonstop since the first block was mined in , and there is no reason to expect it ever to stop.
Technically, it would be impossible for everyone to stop mining Bitcoins as long as it provides tangible benefits whether is it distribution of BTCs or transaction fees. This would mean that BTCs integrity might be compromised as there could be double spending amongst a plethora of other problems which would cause the BTC prices to crash and the entire crypto currency to be deemed worthless, unless the situation can be fixed.
If all miners suddenly decided to turn off their rigs, repent and enlist in a monastery, bit coin transactions would still work fine. However, they would not be verified anymore, which means a mildly competent hacker could start faking transactions and get rich.
In fact, above mentioned hacker would quickly come to the conclusion that they could make much more mining real coins than minting fake ones. That's the beauty of bitcoin. It's more profitable to contribute to it than to undermine it. That's by design. In theory, nothing. Part of the appeal of bitcoin is its supposedly limited supply that will eventually reach a point where no more can be created.
Once that market is gone,they will more on to something else, but there will still be an installed base of people who own coins. The question is, is that installed base enough to keep interest in it alive such that people will still perform transactions in it? I think there will always be at least some people interested, but I think the desire of people to create new wealth will lead them to creating another crypto-currency to become the next big thing to use block-chain tech.
The biggest benefit of bit-coins is to allow people to perform transactions across borders without having to deal with governments and financial institutions taking a piece of the action so to speak. It remains a question of what will happen if a country like the US bans its ownership and use. The inability to convert bitcoin into real, if fiat, currencies would ultimately lead to its demise. It is that simple, if no one mined bitcoin then there would have been no bitcoins at all. This is the best time to mine cryptocurrencies.
The prices are shooting up and it is a good sign for miners. Here is the procedure. You can use the cloud mining facility.
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Once miners unearth 21 million Bitcoins, that will be the total number of Bitcoins that will ever exist. Bitcoins can be lost due to irrecoverable passwords, forgotten wallets from when Bitcoin was worth little, from hardware failure or because of the death of the bitcoin owner. This is a pretty important concept to understand in order to fully understand when the last Bitcoin will be mined. Originally, 50 bitcoins were earned as a reward for mining a block. Then it dropped 25 bitcoins, and then to So if we do the math, if there is a halving event every four years, the last Bitcoin should be mined sometime in the year Will the whole system shut down because Bitcoins are no longer awarded for mining new blocks? Probably not. Bitcoin miners are also awarded transaction fees, and these fees should keep Bitcoin afloat. As the the price of bitcoin increases, the fees allocated per each transaction will also increase.
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By CaashiaOctober 26, in Mining. Will there be enough bitcoin supply or there will be scarcity? I think it could kill a part of bitcoins users. But most certainly not a lot of.
Bitcoin is already popular, it will be hard to take it down because of mining. I dunno if you can convert it any longer. Thats my guess. Bitcoin is so unpredictable eveeyone. All we can do is guess. Transactions will slow. Up to a point that it would take days or even weeks to find a block.
In reality, the only reason why people would stop mining would be if there wasn't any demand for it anymore. In such a case, it would mean BTC is worth almost.
Xtops, if demand was still there and people stopped mining which would never happenthen it would cause BTC to increase in price significantly since there would be a finite amount of BTC available to. But nevertheless, miners will continue to mine as long as BTC is up and running and vice versa. Actually, as most people said, mining is what makes the bitcoin work, because it is that way that transactions are.
Let's say you want to send 1 bitcoin to your primedice wallet. For it to be transfered, some computer must process it to happen. So, when people are mining, they are making everything work in the blockchain, and buy using their hardware and energy, they are rewarded with bitcoin.
Thats not how bitcoin minibg. Its already a deflationary currency. Its supply is happns limited and it will not be mined any more once 21 mil bitcoins are mined. Does not mean its demand will what happens if everyone stops mining bitcoin low or that its price will dip to zero. Once 21mil bitcoins are mined there will be no more mining of coins. Miners will only confirm the transactions after this point and will get paid the fees in return.
Though bitcoin is based on proof-of-work consensus, still its not correct to assume what you said. Miners dont make bitcoins work. Its the people who use bitcoin make it work. Again this coneption is not correct in the true sense. I thought if people stop mining then the blockcahin stops working? Hwat how blockchain runs is by the btc "math" being solved?
Or at least isn't that half of the blockchain? Miners dont "control" the blockchain. Mining btc is done by the proof of the work done by the miners. But they dont control the blockchain. Isn't that how btc is sent to people also? Don't miners have to solve that "problem"? I thought that was how miners made money by completing transactions on the respective blockchain and generating more btc?
This situation is impossible. The less people mine the greater rewards for those who bitcpin do because they have to compete with less players in completing a block. So the transaction fees may become even lower because it would be enough for miners to get just the block reward.
Thus miners leaving will make it more profitable for the miners remaining. Also difficulty will decrease for that miner. So its a win-win. You can post now and register later. If you have an account, everylne in now to post with your account. Restore formatting. Only 75 emoji are allowed. Display as a link instead.
Clear editor. Upload or insert images from URL. What will happen if people stop mining Bitcoin? Reply to this topic Start new topic. Prev 1 2 Next Page 1 of 2. Recommended Posts. Posted October 26, Share this post Link to post Share on other sites. Posted October 27, Posted October 27, edited. Edited December 13, by Mistletoe. Mining is the live of bitcoin network - no mining no transactions - no bitcoins. Posted December 13, But as long as BTC is stable and has enough worth, they wont stop the mining process.
Posted December 17, Posted December 18, Posted December 19, Oh well we all can have different opinions on this. Posted March 5, Mainly, miners play a big part onto the BTC and other cryptos world.
Posted March 8, If majority of mining hsppens, transaction fees will only go higher. The value of btc will not be what happens if everyone stops mining bitcoin as trades will be slower. Btc will not go higher neither as mining only affects the network not the price. But if mining stops most likely there is no more demand.
Bitcoin will die as no one wants to earn any of it. Posted March 9, Posted March 9, edited. My understanding of blockchain can be totally garbage at this point lol. Edited March 9, by Betwrong mistakes. Join the conversation You can post now and register later. Reply to this topic Insert image from URL. Go To Topic Listing. Sign In Sign Up.
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