Will it be profitable for bitcoin miners once all bitcoins are mined?
Once all bitcoin are mined, then miners would still receive rewards but not as much as they do now. Their rewards would be restricted to only the transfer fees generated in the network.
It will take a long time until all bitcoin are mined. So, it is reasonable to assume that by then, the bitcoin developers will come up with something to solve this.
Also, if bitcoin is adopted by 10x or more people in the world than, number of transfers will increase. This will generate a lot of fees as rewards for miners.
Another choice for bitcoin developers would be POS or proof of stack. This will surely solve this problem without any doubt. But it will take a long time to develop. So, I don't think we need to worry about that now.
In theory-yes it will be profitable for bitcoin miners to mine even with all the bitcoin mined. There are 3 main way how:
* Mass Adoption
You see miners also get paid in fees. When Bitcoin blasts off and the world adopts bitcoin -the value of bitcoin will also increase. As such say miners earn 0.1 btc in fees today which is $70. But in the future 0.1 btc can be worth over $600. Get the idea? The fees will pay for itself!
As you can see Bitcoin machines are getting cheap and cheap to run by the day. In fact. even with the price dump with the lastest machine you can make profit! And in theory bitcoin mining can use remmenable cheap energy which will make bitcoin mining even more profitable.
* Sidechains+Merged mining
Side Chains are separate chains that connect to the main net. Merged mining can be done with side chains. The most famous merged mining sidechain is RSK an Ethereum based sidechain aka a sidechain that can do smart contracts with 100K tps.
With giving more use to bitcoin, miners can earn even more money in fees.
Another way to merge mine is merged mining bitcoin. You can merge mine Namecoin with Bitcoin. Dogecoin can be merged mine with Litecoin.
You should worry about Bitcoin mining be profitable. It always will be. What you should care about is how much adoption bitcoin gets. As you can see from this bear market, when Bitcoin falls so will ever other altcoin. Love Bitcoin as much as you love your altcoins. :)
It would be greatly dependent on the price of bitcoin and the competition among the top hash miners. Let's assume the bitcoin will be much higher than it is now, and also assume that the top miners continue their monopoly, then yes it would be profitable, but just like any other manure transaction (or even mature manufacturing industry......but this is merely be instead a hash cryptographic manufacturing of sorts) it will only be profitable at a certain scale.
Will it benefit the bitcoin miner after all the bitcoins are mined?
You should not expect to be rich with Bitcoin or with the emergence of other latest technologies. The most important thing to be careful of everything that sounds too good and amazing to be true or violate the basic principles of economics.
Bitcoin is a growing innovation and business opportunity that also has risks. There is no guarantee that Bitcoin will continue to grow even though it has grown so rapidly to date. In Investing time and resources on everything related to Bitcoin requires entrepreneurial skills. There are many ways to make money with Bitcoin like mining, speculation or running a new business. For all methods are competitive and there is no guarantee of profit. It all depends on each individual to make an evaluation of the costs and risks that may arise in any project.
And bitcoins are virtual like credit cards and online banking networks that we use every day. Bitcoin can be used for online payment in real stores as well as using conventional money. Bitcoin can also be exchanged for material forms such as Denarium coins, but mobile phone payments are usually easier. Bitcoin balances are stored on a large distribution network and these balance values can not be cheated or altered by anyone. In other words, Bitcoin users have exclusive control over their money and bitcoin can not be lost simply because it is virtual.
Only a fraction of all the bitcoins that have been issued today are sold in the exchange market. The Bitcoin market is competitive, meaning bitcoin prices will rise or fall depending on demand and supply. Moreover, the new bitcoin will continue to be published in the coming decades. Therefore even the most ambitious buyers will not be able to buy all the bitcoins that are present today. However, these circumstances do not indicate that the market is not susceptible to price manipulation and still does not require substantial amounts of money to drive up or down market prices, so Bitcoin is still a relatively volatile asset so far.
Short answer, yes.
Literally, only two scenarios will occur, based on two assumptions.
Assumption 1, Bitcoin supply will not be increased, therefore capped at 21 million.
In this case, miners will have to rely on transaction fees in order to maintain operations of the blockchain itself.
Assumption 2, Bitcoin supply will be increased, therefore is not capped at 21 million. Let's imagine the protocol of the Bitcoin is essentially changed via consensus and allows more Bitcoin to be mined. Therefore, theoretically, miners are still able to continue their operations as usual.
However, assumption 1 is most likely to be true. This is because Bitcoin is dubbed the digital gold. The direct increase in Bitcoin supply would essentially brings harm to the financial ability as well as reliability of Bitcoin being a decentralized cryptocurrency. Because, if that's the case, what sets Bitcoin different from fiat basically would not exist anymore. So, maybe, however with large possibilities, if assumption 2 occurs, it would not be profitable anymore.
Once all the bitcoins are mined, miners will still be rewarded with some amount of bitcoins (although small), and this will be imposed as a small transaction fee upon those who are sending and receiving the cryptocurrency.
According to the bitcoin protocol, which Satoshi Nakamoto programmed, the reward miners get for successfully publishing a block will be halved every four years. This will go on for about until the 2100s. Only then will the mining rewards stop, or in other words, all the bitcoins will be mined out by that time.
But even then, miners, the people who keep the blockchain updated, and the entire system from crashing down, will be rewarded for their efforts and investments of time and computing power.
Bitcoin is heavily dependent on this mining process. Because with mining done by miners Bitcoin (miner) will validate every transaction, build and store the new block into blockchain. To save the new blocks into the Blockchain, miners must reach consensus.
Role And Function Of Miners
Bitcoin Mining is actually a mine activity using a particular device. The process through solving a series of mathematical problems (puzzles) based on certain difficulty levels. Well this activity is called "Mining" or cool term is "Bitcoin Mining".
So clearly, that if someone is mining Bitcoin, that means the person is using a mining device. Can use CPU, GPU, FPGA, and ASIC. An explanation of this device will be discussed in the next section.
Mining actors, referred to by the term "miners", or the cool language is "Miner". Well, sometimes, we also still leave the question, what exactly is this miner Bitcoin doing?Let's discuss it. Bitcoin mining process is similar to mining of precious metals such as gold. It's just the difference, if Bitcoin mining is done digitally to solve the puzzle, and gold mining through the process of gold mining.
Being similar, because sometimes there are miners who feel loss, because it can not and difficult to find gold, and some are successful. However, the real picture is, there will be many difficulties when doing the mining process.
Likewise with Bitcoin mining. There are a series of difficulties and challenges faced. As for being a miner, then we must be connected into the Bitcoin network. Once connected, then we will be a "node". The term node describes all devices connected to the Bitcoin network.
So what are the miners doing? When someone connects to a Bitcoin network using a device, the node will perform a series of tasks. The tasks performed are:
All nodes that are connected in the Bitcoin network must listen to all transactions that occur. Followed by validating the audited transaction. By checking the digital signature. It is related to the truth of digital signatures and the output included in the transaction must be completely un-spent (not yet issued in other transactions-ensuring no double spending).
Keep Blockchain and listen to the new block created.
A miner, actually serves to keep the blockchain. Related to handling all transactions that occur. Miners too, will retain Blockchain which has kept all transactions. Miner, can request all history of the block to another node that has entered before it entered into the network. Listen to new blocks that are broadcasted within the network, then validate the received blocks. Because in the block there is a series of transactions, then every transaction that is in the block and even then also must be validated, and valid. Create a new block candidate
Once we have a full copy of the block chain (blockchain), then we can start building blocks. To do so, by grouping all the transactions we hear into the new block, which can later expand on the block we know. However, we must also ensure that all transactions within the block are valid.
Finding Nonce to be a valid block
After we validate all transactions on the candidate block, then is looking for nonce in order to make the block become valid. The step here is the most difficult step faced by miners.
Profiting from bitcoin mining is possible, but a high initial investment is needed, and there is a moderate risk. Overall research needs to be done before investing. Remember this when calculating mining profits and trying to get from bitcoin mining. This is not a get rich quick scheme and this method must be taken into account when you start mining to get a profit. Mining bitcoin has the potential to get awards for commitments. If you are in a cooler climate, consider replacing your heating system with your hardware, this step can be to reduce or even eliminate the electricity costs from your calculations for months.
No. Not unless they find a new coin to mine.