- This topic has 5 replies, 1 voice, and was last updated 1 week, 1 day ago by fverdeja.
- Tuesday, November 22nd, 2022 at 09:35 #408612ThibautAltF4Participant
Each year bitcoin miners receive less than 2% of the supply as a reward for securing the network.
Even though the price of mining a BTC increases over time, because of the difficulty and the reduction of reward for each block. I don’t see why the prices would be higher, knowing that it is only a small part of the bitcoin holders.
I think it is a psychological bias.
Can you help me with this?
Thank you very much.Tuesday, November 22nd, 2022 at 09:42 #408615dlq84
I’ve read this three times and still don’t understand what you’re trying to say.Tuesday, November 22nd, 2022 at 09:59 #408613BuxtonHD
The price of mining doesn’t necessarily increase over time. It adjusts up and down depending on how many people are mining.
So if everyone stopped mining it would be really cheap to mine bitcoin… so naturally the cost of mining bitcoin should float around the price of bitcoin.
Now to your actual question, I personally believe the answer lies in adoption of bitcoin. As you are probably aware there are only 21million BTC, even less due to lost coins. That means if everyone one wanted 1 BTC they couldn’t.
To me 1 BTC is a good amount to own. 6 years ago people involved in BTC most likely thought 100 BTC was a good amount to own. As BTC advances and more people get involved, new comers will think 0.1BTC is a good amount to own and then after that 0.01 BTC (or 1million Satoshi’s) wuill be a good amount to own.
As the mining reward gets less and less, Bitcoin will natural we worth more and more because new people getting involved will value the small amount of BTC just like we value the smaller amounts compared to the past.
So your view of it being phycological bias is valid but I think there is a bit more to it.
I could also be wrong, its just my thoughtsTuesday, November 22nd, 2022 at 10:00 #408617fverdeja
I don’t really understand your question, but maybe the anser you are looking for is because it becomes more scarce. If people are willing to pay more for more security, miners will has more increasing the price of production and having to sell at higher prices. If people don’t, miners will have to pull the plug and people will pay have a less secure money that cost less to produce.
Not quite sure what you’re asking for really, hope this helps a little.Tuesday, November 22nd, 2022 at 10:10 #408616Oli_01
A Bitcoin halving event occurs when the reward for mining Bitcoin transactions is cut in half. Halvings reduce the rate at which new coins are created and thus lower the available amount of new supply, even as demand increases.Tuesday, November 22nd, 2022 at 10:30 #408614Ok_Aerie3546
Miners are pure sellers. Otherwise they go bankrupt. Now if all else stays equal and suddenly miners have half the bitcoin to sell everyday on average, where should the price go?
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