And what happens to the whole system if the miners can't make money?
Bitcoin Price Thread
- Thread starter Magna
- Start date
For Bitcoin on a longer timeframe it doesn't matter. It's difficulty constantly re-adjusts. So if miners go bust, it will simply take longer to mine blocks for a period of time, and then the difficulty will re-adjust for the current miners(hashpower) and the blocks will take an average of 10 minutes again.
In a sudden crash it would cause problems, but it would eventually sort itself out. It would temporarily disrupt the blockchain (slow confirmation times = long time to send transaction, high fees, network congestion...).
Miners are a retarded business model and these miners will largely go bust once the price inevitably collapses. (but then again so is Bitcoins design overall; These miners are literally solving arbitrary mathematical equations and they burn vast amounts of energy for doing so.)
More miners do NOTHING for decentralization of Bitcoin as majority of the bitcoin hashrate is congregated into just a few(like 6) mining pools.
Bitcoin is not decentralized, it's not fast, it's not cheap, it doesn't evolve. The whole purpose behind Bitcoin is to have the price move up. And it's largely done so through fake Tethers that are printed out of nothing(backed with crypto) and then used to prop-up the market.
It's an obfuscated ponzi scheme presented as a "revolutionary decentralized technology/gold".
If L. Ron Hubbard were alive today, he probably would have created a cryptocurrency rather than a religion.
waiting for the transaction cost memes to hit as nft like ordinals/inscriptions clog the network to max pain
The beauty of capitalism takes over. The miners that can't make a profit go bankrupt. Hashrate drops, maybe even 50%, just like during the China ban. The networks adjusts to this new hashrate, and blocks are still produced every 10 minutes.
Then some people secure super cheap energy in areas where it would have gone to waste, like methane gas flaring sites, and they perhaps even get paid to use the gas vs. having to flare it. These guys will be able to make money, so they enter the picture and hash rate perhaps goes up again.
I would personally love to see hashrate so much more distributed. I would love to see every house or hot water heater that is run using electricity have a cheap built in miner. If you're already using electricity to heat, you might as well have a miner in between that does calculations and the waste heat is actually what you're after.
Miners going bankrupt opens up the market to do it even more efficiently.
Just like pretty much everything from Fiat to social security...
Government has the authority to print money.
If there is an offshore entity that is counterfeiting the US dollar, the perpetrators will get a lifetime in prison and the scheme will get shut down.
Bitcoin is decentralized. Tether is centralized.
Bitcoin can't be taken down. Tether can be taken down.
Bitcoin has nothing to do with price. Tether has A LOT to do with Bitcoins price.
Bitcoins price is to very large extent artificially inflated through tether. It keeps coming back after every crash, in big part due to Tether.
And yes, they are copying mechanisms of money printing from traditional finance, but they are operating illegally. That makes it a scam and a ponzi scheme.
Government is running a legitimate scheme that has brought us to where we are right now. Bitcoin has created nothing but speculation on the price of a glorified spreadsheet.
I like the idea behind Bitcoin, but if you understand it good enough you see that it's a sham. It's not an obvious/blatant ponzi scheme because it's obfuscated through Tether.
If the price pumps high enough, anything becomes believeable. Perception forms reality, but the perception is heavily distorted.
No matter how dumb you are, everyone understands the idea behind Bitcoin, so the price goes up as there are more and more suckers failing prey to the scam.
You just described gold. Thanks. After thousands of years, you've proved all other generations to be 'dumb' in this regard.
Waiting to see you sitting as chairman at an investment bank in 6 months...
Its the 'glorified spreadsheet' for me.Also you forgot to mention tulips.
Does anyone else feel like the nocoiners just swapped out the word 'tulips' for 'tether' in their largely confused ramblings?