Hey all,
I've been wondering this since I started to get into it. What happens if the price of Bitcoin tanks? We see these huge companies sink tonnes of money into mining farms. If the price tanks, do they continue to mine at a huge loss or just shut them down? Would the difficulty ever go back down to try to boost the price?
Sorry if this has been answered elsewhere.
Well, if their mining cost (electricity etc) is higher then profit, then they should shut down since you can always buy Bitcoin using the electricity you paid...
Which then drives the price higher and makes mining economically attractive again.