What Happens When the Last Bitcoin is Mined?
How will the network continue to function? Won't bitcoins then be useless? What would be the incentive for an individual to continue using computational power to service all the transactions? Isn't this like a ticking time bomb or is there something I'm not getting? Bitcoin becomes very insecure if miners stop mining. However, I disagree with your assumption that miners will stop.
And certainly that if Bitcoin dies it would be because miners stop. I would instead think that miners would only stop if something else already killed Bitcoin. Bitcoin is designed to always give miners an incentive to keep mining and secure the network.
If miners don't have an incentive to mine, then Bitcoin has already failed. Many mining pools don't pay out income from transaction fees and the whole thing is often glossed over. But mining income is newly minted coins PLUS fees from the transactions you include in the blocks you generate. So tx fees went from being 0. I'm sure you can see where this is going. No, mining does not stop when the minting of new coins stops.
For now they get the block rewards, but they halve every so many blocks. Later they will receive rewards that people put on transactions.
It's still unclear how high those fees will work out to be. Likely all transactions will carry some very small fee, and miners will keep up the hard work to earn those fees.
I also expect "green addresses" to play a much bigger role in the future. Those addresses' transactions will be "certainly good", given they are owned by trusted parties. On the other hand, b has the attraction that it encourages more transactions, and therefore more fees to be earned over all.
Assuming bitcoin operates like a normal currency, there are always going to be more small transactions that people want to make than large ones, but on the other hand people will not make a transaction if a large percentage of the money transferred is eaten up in fees, so a fixed fee would operate to prevent small transactions i.
Maybe the ultimate answer will be some sort of sliding scale, with a minimum fee, and then a percentage being charged that will vary downwards as the amount being transferred increases. When last miner stop mining, then I will be the miner. When last doctor stop curing people, then I will A lot will change in the crypto space before the last Bitcoin is mined. Blockchain is merely the form of DLT that Bitcoin uses. The drawback to blockchain is that the network must wait 10 minutes before adding each consecutive block.
This is to ensure that multiple computers do not add the same transaction to the blockchain at the same time. This is the primary purpose of the minors. This is also why the mining difficulty is always increasing. The network must always have a ten minute pause between each block. If the miners only receive transaction fees for validating transactions then the people using Bitcoin will ultimately decide how much money they are willing to spend on transaction fees, verses using something else.
Many miners will likely quit, thus driving down the cost of mining to the point where those who remain will profit. One of the answers I read above hit the nail on the head for me. And as was said above, the 'Blockchain' is simply one form of such a thing. In my opinion, Bitcoin and its Blockchain are together, just a prototype that provides proof-of-concept for the 'proof-of-work' algorithm.
What I'm hinting at is the inevitability in my mind that Bitcoin and its Blockchain BaiB will be superseded by something a lot more suitable for international transactions, finance and banking. I now believe there is no 'one-size-fits-all' when it comes to DLTs and particular use cases. BaiB would be the perfect solution for government record keeping, tax records for companies, expense accounts, payroll, etc.
This DAG is far more suitable as a global payments solution than BaiB as there is no transaction fees on the network, no mining required and the transactions are instant. I can't see how Bitcoin will go about surviving in an atmosphere evolving so quickly! Podcast: We chat with Major League Hacking about all-nighters, cup stacking, and therapy dogs.
Listen now. Home Questions Tags Users Unanswered. What happens to the bitcoin network when the miners all stop in the future? Ask Question. Asked 6 years, 8 months ago. Active 1 month ago. Viewed 19k times. Demioprax Demioprax 1 1 gold badge 2 2 silver badges 3 3 bronze badges. There is a similar question which is a community wiki. Related: bitcoin. Haribo Dr. Haribo 7, 10 10 gold badges 36 36 silver badges 59 59 bronze badges. I don't see how variable transaction fees can scale.
I go to a merchant's website to buy, how do I select a mining peer to pay transaction fee to? Do I attach some bounty that any peer can earn if that peer wins the Proof-of-Work block? But what if my bounty isn't high enough to attract a peer given high transaction volume competing for priorities? This sounds very complex and unreliable and not at all like something that can scale to customers. Customers want to click one button and be done with the purchase and not waiting unknown hours debugging their payment processing.
Amazon's One Click. I will wait for a reply to clarify before I decide if I will downvote. No one has given an answer to refute my question claiming that market-based transaction fees won't scale , thus I am downvoting you. How gracious of you to give me 1 hour to answer before you downvote. I have now placed my answer with the question you link to above. Haribo Mar 28 '13 at They won't ever stop! Lodewijk Lodewijk 1, 9 9 silver badges 15 15 bronze badges. I thought about rewards in the form of transaction fees too.
Even you say "It's still unclear how exactly that will work. Why will miners work hard if they are not profiting for their efforts and a level worth the effort? I still don't really get it, though I figure there are a few solutions that may present themselves by then. And I don't get whats "unclear" about transaction fee? Nicolai, changing the amount or shape of the block reward is a technical change that is no different from previous protocol changes. The transaction fee's heights are still unclear, and what will happen with lower payed transactions.
ASICs are not relevant to this discussion, the exact technology does not matter at all. I see potential for a future with a steady blockreward no fixed maximum Bitcoins. In that case you could create a fork called "x-coin v2" but it wouldn't be bitcoin. Also, I still can't see what is "unclear" about transaction fee? If you don't pay a transaction fee, then the miner has no reason to include your transaction other than helping the network aka "being a good guy" , some miners will still include free transactions, but you will expect long transaction times.
ASICs will mean that for few money electricity we can run a powerful network difficulty. If the technology gets better, the price per hash goes down and the defense needs a much higher hashrate to be safe. You are also arguing semantics with calling it Bitcoin or not.
It is still practically as Satoshi wrote it, still the bitcoin protocol. The Bitcoin is changed only a little. There may be other incentives to include transactions, like being a Bitcoin service provider. It is also possible there will be no strict minimum fee, which makes fees unclear to say the least. Miners will have to decide whether a they expect to be paid a fixed fee as a minimum for each transaction they put into their blocks, or b a percentage fee percentage of the amount being transferred.
Jeremias Jeremias 1. Miners are also getting fee for transaction. CoperNick CoperNick 1 1 silver badge 9 9 bronze badges. Money Chief Money Chief 1. Lenny Bogart Lenny Bogart 1. Your answer is more an opinion of which cryptocurrency will be most important in the future , than an answer to "what happens to the btc network when all the coins are mined".
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What Happens When the Last Bitcoin is Mined?
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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.
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By CryptoNovember 20 in Crypto World. I want to ask members here why halving of bitcoin happens? And how long will this happen? I mean the duration between each halving Why did Satoshi make this division within the Bitcoin configuration algorithm?
What's the point and what's the benefit from Halving? I dont know about this subject because its a new matter to me hope to leanrn about it in upcoming days and will b able to ans it propelry.
This first happened inand again in Likewise, it will happen again sometime in and What is the bitcoin halving? What impacts does it have on the economics of bitcoin? Each day, many untold thousand watts of electricity are committed towards bitcoin mining. People mine bitcoin because they hope to earn bitcoin, which has value and can be bought and sold in various markets. Without going into too much detail, mining is the process by which the network is secured and transactions are processed.
In order to encourage people to mine bitcoin or other cryptocurrencies that also use proof of work miningeach block contains a reward. That reward is released to the click here that successfully solves the block.
This reward needs to be high enough so as to be a strong incentive. But the reward also cannot be too. A large reward would cause an oversupply and lower the value of the currency.
When Satoshi Nakamoto created bitcoin, he wanted to create a system that would be self-sustaining and that what happens when bitcoin stops mining in some ways emulate gold-mining. That being, over time, mining would become more difficult and the rewards collected would slowly reduce so as to control the supply. Specifically, Nakamoto writes:. When bitcoin started, the block reward was a whopping 50 bitcoin every 10 minutes. The bitcoin code includes a statement which says that after everyblocks or about four years, given 10 minutes per block this reward should drop by half.
Following the last two bitcoin halvings, the current block reward is now In the yearit will be 6. First, it extends the life of the reward. If we were still releasing 50 bitcoin every 10 minutes, then we would reach the maximum supply cap of 21 million bitcoin rather quickly. In fact, mining rewards would cease in about 8 years. Reducing the reward rate over time slowly means that there will be a longer period of time in which mining results in receiving a block reward.
Secondly, bitcoin halving helps bitcoin see steady price increases over time. This is because the number of new bitcoin that appear each year will be decreasing.
This limited supply causes bitcoin prices to increase, as their scarcity also increases proportionally. Finally, the bitcoin halving increases the cost of mining each individual bitcoin.
As the network difficulty increases over time, and the reward rate drops, the actual cost of mining each bitcoin increases, which then causes the trading price of each bitcoin to increase as. With this in mind, this leads us to a logical question. What happens when the bitcoin reward drops to zero? Will everyone simultaneously stop mining bitcoin, causing the network to come to a complete stop? First, at the current mining rate and factoring in for future bitcoin halving events, it is estimated that the final block containing bitcoin will be mined sometime in the year Considering that the network started operation inthis means that the network will have a total of about years before this event occurs.
By that time, the economic conditions of cryptocurrency could be so fundamentally different that the need for a block reward may not even exist. The second thing to consider is that bitcoin miners have a secondary source of income aside from the block reward. Specifically, miners also earned transaction fees. Each day, many hundreds or even thousands of bitcoin are paid in transaction fees depending on network conditions.
So by the time rolls around, it is entirely possible that mining purely for transaction fees could be profitable enough for miners to continue mining indefinitely, regardless of their being no block reward anymore. In his widely reviewed white paper, Nakamote describes it like this:.
Another point to consider is the release of new projects that plan to coexist alongside more info bitcoin blockchain. One example of this is the RSK platform. RSK is a smart contract platform that is intended to run on top of the bitcoin network. It will allow for smart contract and decentralized application execution while making use of the bitcoin blockchain.
It is intended to be a competitor to Ethereum. One of the selling points of RSK is that miners who choose to participate in processing root stock transactions can do so while at the same time mining bitcoin as normal, with nearly no loss of efficiency. This means that in the distant future, miners this web page not only earn transaction fees from the bitcoin network itself, but they could also potentially earn transaction fees from these additional layer networks that may exist on top of the bitcoin network, such as RSK.
If we look at countries that experienced hyperinflation, one thing that often happened is the rampant and uncontrolled printing of new money. Each time a country prints more money, it is reducing the value of each individual of currency already in circulation.
The bitcoin halving makes sure that not only will the rampant production of new but coins never happen, but in fact, it is mathematically required that the reverse should occur. Not only does it get more expensive, but less than mask new gold enters the gold marketplace each year. This is led to a predictable and steady rise in gold prices over the last century. Since the launch of bitcoin, many other altcoins Liberland proof-of-work mining have their own implementations of bitcoin halving.
For example, Vertcoin recently underwent its own halving event, as did Ethereum Classicwhich dropped its reward from 5 to 4. Finally, the bitcoin halving keeps bitcoin prices steadily moving upward over long periods of time.
That article covers most of the aspects read article the Bitcoin halving. There are quite a lot more of them from the Web where they came. Enjoy reading. The great collapse of bitcoin begins, it looks like will be quite historic in the history of bitcoin, and I think it will be time to buy it under the hold for several years. I think it will be very promising.
In General, in connection with what is the fall of bitcoin, it is quite strange, perhaps it is the emergence of new currencies and other things in the crypto market, from the same China.
Probably due to the fact that most people now bottom. Thus reducing their value. Bitcoin is a very good project. Satoshi made it with a algorithm. Which has been use for mining bitcoin. This algorithm is too hard to break. There is no halving in this algorithm. Please clear your topic. Very interesting topic. As im very new in this crypto thing i dont have much knowledge about this situation but one thing i can say that this is time we should invest or buy coins for future if we have enough lazy money for it.
The benefits of halving is to make the price to be stable and not to keep falling. He designed the algorithm for mining so that supply will not be too. Bitcoin Halving - An event where the reward block is reduced by half, which occurs everyblocks. Bitcoin Halving will occur when half of the supply of coins is already in circulation. Bitcoin Halving will be repeated again when half of the remaining supply of coins is in circulation.
Bitcoin Halving will occur every 4 years, the first in and the upcoming I think halving bitcoin is there to keep inflation in the market, by reducing the amount of bitcoin for miners.
Now making bitcoin down and right to buy. This is in order to regulate Bitcoin and rehabilitate it to become stronger and increase its price, which is a correction by bitcoin in order to go for the better.
Life is great and enjoy it. This is done in order to raise the price of bitcoin in order to maintain its value and does not deteriorate or be controlled by whales. Satoshi was very smart and economical expert because he knows that increasing the amount of anything will reduce the price, and therefore make this mandatory every four years to reduce the amount of bitcoin extracted and thus maintains the price of bitcoin by reducing the.
What a genius man. I don't really know why the halving occurs but all I know is that it gives us benefit by occuring a bull run. With the coins getting split, the prices what happens when bitcoin stops mining go up and we can earn a lot from it.
Nakamota think for next generation and that's why bitcoin is popular and halving is on kind of Bitcoin price pump because when mining rewards half then miners want sell Bitcoin at higher price so this is good thinking. Halfving of Bitcoin will not happen because the price is very low. My dear, halving is not optional but it is mandatory, this is found in the basis of bitcoin in the equation or algorithm set by Satoshi himself, no one can change that and says I do not want to make a halving now, this is inevitable to happen and happens every four years according to what was set by Satoshi and no one can Stop it.
We do not discuss whether or not it will happen. We are discussing why it happens or what is the benefit of it happening. What is the purpose of half the Bitcoin happening? I just heard, understand I am a layman and do not know much about Bitcoin and.
I only know the basics and how to get started.
The End of Bitcoin Mining - Crypto Mining is DEAD
When Will the Last Bitcoin be Mined?
Originally, 50 bitcoins were earned as a reward for mining a block. This would have disastrous effects for bitcoin. Eventually, once there are no more bitcoins left to mint, miners will rely solely on transaction fees, which are paid by users to transfer coins through the blockchain. Assuming bitcoin operates like a normal currency, there are always going to be more small transactions what happens when bitcoin stops mining people want to make than large ones, but on the other hand people will not make a transaction if a large percentage of the money transferred is eaten up in fees, so a fixed fee would operate to prevent small transactions i. The opinions expressed in this article are not necessarily those of Bitcoin. Key Takeaways There are only 21 million bitcoins that can be mined in total. What if? This means that, if the block size continues to grow, people will always be able to have their transactions confirmed at low fees. Read more about As mining difficulty increases, fewer miners will be able to continue. Tip: If you read through the whole story there is a little bonus for you at the what happens when bitcoin stops mining. To skeptics, this could undermine the structure that motivates miners to record validated transactions in the ledger. Later they will receive rewards that people put on transactions. Despite increased awareness around Bitcoin, not a lot of people seem to be talking about. This is to ensure that multiple computers do not add the same transaction to the blockchain at the same time. This sounds very complex and unreliable and not at all like something that can scale to customers. Raiden Network Sep