<p>Bitcoin's difficulty adjusts itself automatically according to the amount of hashing power available. Since not every miner has the same profit margin, they may be shutting off and turning on at different times. Because of this in the end only the most efficient miners will be mining.</p>

<p>In case there is a sudden drop in mining profitability (like say after the 2011 bubble), a lot of miners might drop off the network. As long as some of them still mine (those that are in for the long run and the idealists that will mine no matter what at the very least), that won't harm the network. The block generation might slow down for 2 weeks, but after the amount of hashing power stabilizes, everything will go back to normal. Bitcoin is a self-correcting system.</p>

<p>So as long as the amount of hashing power that suddenly drop out of the network is not really big, Bitcoin will be unaffected in the long run.</p>

CC BY-SA 3.0
2013-06-18T13:58:05.973Z
2013-06-18T13:58:05.973Z
ThePiachu
<p>Bitcoin automatically adjusts difficulty every so often so if mining is not profitable then people will stop mining and the difficulty will drop, making mining profitable again.  Unless there is a sudden crash in mining power Bitcoin will tick along happily. </p>

<p>Mining is never going to be <em>wildly</em> profitable, but the doomsday scenario you are suggesting is not going to happen.</p>

CC BY-SA 3.0
2013-06-18T13:41:41.937Z
2013-06-18T13:41:41.937Z
jgm
<p>Mining services are paid for using a subsidy.  Currently this subsidy pays out 3,600 BTC (worth about 400K USD) each day.</p>

<p>Some miners will save their proceeds, others will cash out to fiat (especially the GPU miners who have high electric bills) and a small minority of miners will spend their mined coins in the Bitcoin economy.</p>

<p>So it matters little to the Bitcoin economy that the GPU miners will no longer be receiving enough to cover their electricity costs (and will be forced to retire that hardware).  </p>

CC BY-SA 3.0
2013-06-18T20:12:16.110Z
2013-06-18T20:12:16.110Z
Stephen Gornick
<p>In the upcoming months the difficulty on the chain will cause GPUs to be non profitable (or so I hear).</p>

<p>So all we can do now is mine with ASICs - and even then see returns after a YEAR?</p>

<p>That will be the death of bitcoin .... If mining isn't profitable - no one mines - no one mines no coins generated and transactions fail ?</p>

<p>What are people thinking still trying to make rigs etc? Or am I completely mistaken?</p>

CC BY-SA 3.0
2013-06-18T12:52:54.190Z
Non profitable means there is *too much* processing power already.
Stéphane Gimenez
CC BY-SA 3.0
2013-06-18T12:53:30.413Z
which is there because it is profitable. Unless you plan to support it out of charity ?
user5618
CC BY-SA 3.0
2013-06-18T14:34:49.743Z
If no one mines, mining will be profitable again. That's what the difficulty is about.
Steven Roose
CC BY-SA 3.0
2013-06-18T14:36:12.747Z
Besides, Bitcoin is more than only mining. Eventually, only a small part of the big Bitcoin community will mine, while the others use it for what it's meant to be used. As a payment option and a currency.
Steven Roose
CC BY-SA 3.0
2013-06-18T20:14:36.260Z
People are still building GPU rigs?   I suppose it happens -- especially if a person isn't aware of what ASICs bring to the table) but probably this isn't occurring in any significant number anymore.
Stephen Gornick
CC BY-SA 3.0
2013-06-19T17:54:38.523Z
Nobody goes to that restaurant, it's too crowded.
David Schwartz
<difficulty>
So... bitcoin is dying?
user5618
# So... bitcoin is dying?

(Asked by: username_0 on 2013-06-18)

In the upcoming months the difficulty on the chain will cause GPUs to be non profitable (or so I hear).

So all we can do now is mine with ASICs - and even then see returns after a YEAR?

That will be the death of bitcoin .... If mining isn't profitable - no one mines - no one mines no coins generated and transactions fail ?

What are people thinking still trying to make rigs etc? Or am I completely mistaken?

**Tags:** difficulty

> **Comments:**
> **username_1**: Non profitable means there is *too much* processing power already.  
> **username_0**: which is there because it is profitable. Unless you plan to support it out of charity ?  
> **username_2**: If no one mines, mining will be profitable again. That's what the difficulty is about.  
> **username_2**: Besides, Bitcoin is more than only mining. Eventually, only a small part of the big Bitcoin community will mine, while the others use it for what it's meant to be used. As a payment option and a currency.  
> **username_3**: People are still building GPU rigs?   I suppose it happens -- especially if a person isn't aware of what ASICs bring to the table) but probably this isn't occurring in any significant number anymore.  
> **username_4**: Nobody goes to that restaurant, it's too crowded.  

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## 3 answers

### Answer by username_5 on 2013-06-18. Score: 4

Bitcoin's difficulty adjusts itself automatically according to the amount of hashing power available. Since not every miner has the same profit margin, they may be shutting off and turning on at different times. Because of this in the end only the most efficient miners will be mining.

In case there is a sudden drop in mining profitability (like say after the 2011 bubble), a lot of miners might drop off the network. As long as some of them still mine (those that are in for the long run and the idealists that will mine no matter what at the very least), that won't harm the network. The block generation might slow down for 2 weeks, but after the amount of hashing power stabilizes, everything will go back to normal. Bitcoin is a self-correcting system.

So as long as the amount of hashing power that suddenly drop out of the network is not really big, Bitcoin will be unaffected in the long run.


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### Answer by username_6 on 2013-06-18. Score: 2

Bitcoin automatically adjusts difficulty every so often so if mining is not profitable then people will stop mining and the difficulty will drop, making mining profitable again. Unless there is a sudden crash in mining power Bitcoin will tick along happily.

Mining is never going to be *wildly* profitable, but the doomsday scenario you are suggesting is not going to happen.


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### Answer by username_3 on 2013-06-18. Score: 2

Mining services are paid for using a subsidy. Currently this subsidy pays out 3,600 BTC (worth about 400K USD) each day.

Some miners will save their proceeds, others will cash out to fiat (especially the GPU miners who have high electric bills) and a small minority of miners will spend their mined coins in the Bitcoin economy.

So it matters little to the Bitcoin economy that the GPU miners will no longer be receiving enough to cover their electricity costs (and will be forced to retire that hardware).


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