I just read something very interesting in their Monetary Policy explanation!
"Currencies with set supply are extremely experimental. Miners likely need incentives to secure the chain beyond only fees. Note: currency deflation is historically not a good thing."I had never asked the question before:
What happens when if in a few years the mining rewards fall bellow a level which can support all the produced ASIC miners?I guess many people might think that the Bitcoin's price will magically go higher in order to keep the mining profitable, just like many though the price couldn't go bellow 5000$ (or was it 4500$?) because mining would become unprofitable.
What will happen in about 1.5 years when the next halving takes place if Bitcoin's price is still around 4000$? Most likely half of the mining hardware will shut down. In that moment, there'll be enough dormant hardware to 51% attack Bitcoin itself. Scary stuff.
On that regard, GRIN is more balanced and future-proof safe.
Bitcoin's limited supply sounds good to investors, but there are some serious implications in the long term.
IIRC the best analysis I saw stated the range was 36XX for break even on the large farms so the market seemed to play there for quite a bit even though ot did drop down into the 32xx range a few times for culling of the herds.
You known what are issues with your post, @RivAngE?
I don't check, but base on what you posted, I guess that you get details from somewhere else, that you should post sources of those details.
Why you have to do this?
Because it will help you don't violate forum rules on plagiarism.
Please edit your post with source/ link if you don't want to see death penalty drops on you later.
Best regards,
I just read something very interesting in their Monetary Policy explanation!
"Currencies with set supply are extremely experimental. Miners likely need incentives to secure the chain beyond only fees. Note: currency deflation is historically not a good thing."I had never asked the question before:
What happens when if in a few years the mining rewards fall bellow a level which can support all the produced ASIC miners?I guess many people might think that the Bitcoin's price will magically go higher in order to keep the mining profitable, just like many though the price couldn't go bellow 5000$ (or was it 4500$?) because mining would become unprofitable.
What will happen in about 1.5 years when the next halving takes place if Bitcoin's price is still around 4000$? Most likely half of the mining hardware will shut down. In that moment, there'll be enough dormant hardware to 51% attack Bitcoin itself. Scary stuff.
On that regard, GRIN is more balanced and future-proof safe.
Bitcoin's limited supply sounds good to investors, but there are some serious implications in the long term.
What issues do you see? The text in quotation marks? That is fine and does not need to be sited as he stated it was taken from the grin docs and therefore is already cited..