Re: Bitcoin's Future: What Happens When the Block Reward is Lower Than Fees?
⭐ Merited by LDL (1)
The halvings of the past gave the same amount of bitcoin rewards with bitcoin mining, excluding mining costs, electricity bills, transaction fees, etc. In case of next halving, the Bitcoin reward goes after the fraction i.e. almost reaches zero, in which case it is very difficult to predict how much it will be reasonable / profitable to mine with electricity bills, transaction fees, mining maintenance costs. If the Bitcoin market goes down then mining will stop altogether. Especially after 2040 it is only a matter of time whether Bitcoin mining will survive.
It is not a secret that the survivability of Bitcoin mining depends on the two factor.
1. Bitcoin adoption
2. Mining machine development
Adoption gives more profit to miner( via increased price and increase number of transaction increasing transaction fee input to the network) while mining machine development reduces the energy consumption and at the same time produces more hashing power (cheaper electrical charges that gives discount plus higher hashing power output).
So if these two factors goes well, I do not think miner will face any difficulty in the future(except if the government push their ideology that Bitcoin miners greatly contribute to greenhouse effect), this will ensure the survivability of Bitcoin mining in the future.