/biz/ - Business & Finance

>>12149439
Mining BTC is unprofitable in many parts of the world due to electricity costs. Soon the block reward from mining will go from 25 to 12.5 bitcoin/block. If this price stays low this will cut the profitability by another 50%. In the lower block reward phase of bitcoin distribution the mibers are incentivised to mine by increased fees from more use. 2nd layer solutions like LN take most transactions offchain so there won't be much in the way of fees with 1mb blocks. The natural state of bitcoin as per its game theory design is to have full big blocks so miners are getting majority of the reward by way of fees. 128mb blocks will be able to offer competitively price sat/byte txs while also incentivising miners to mine it for 128x the amount of fees of a non segwit core block.

If SV pumps to over 0.03btc/sv then it basically becomes as profitable to mine as BTC. If BTC loses more than 20% of its hashpower in a 1024 block period then the difficulty can only adjust downwards by 20% in a single readjustment. Therefore if SV is having full big blocks through lots of use (say an onchain casino) with lots of fees, it will be more profitable to mine BTC even at less than 0.03. If more than 20% hashpower leaves BTC in a 1024 block period, you will find that the next 1024 block period will take longer to arrive, and if the price tanks there and more hashpower leaves or the mempool clogs up then you may well start to see a chain death spiral on the BTC chain. Jihan and others are only mining BTC as a short term profitability play. As it gets less profitable to mine they have to dump more of their mined coins on market thus increasing the sell pressure. Couple that with whales dumping BTC to fund their SV or BCH positions/mining and you have additional sell pressure making mining even less profitable.

>>12018236
>this ship is sinking

https://www.youtube.com/watch?v=S5ZSDCvUwN8

>>11992084
But Bitcoin IS dying?