What will happen to crypto miners after bitcoins are finished and mined?
As Bitcoin (BTC) is mined more and more, of course, it will eventually run out because the amount is limited and has been fixed from the start. Then, what will happen to the Bitcoin miners if the main crypto has run out and has been mined?
As we know, every mined block generates a fixed amount of Bitcoin. When launched, the amount was set at 50 BTC. The algorithm, however, is set to halve this number after every 210,000 blocks, roughly every four years. Currently, the block reward is at 6.25 BTC. Bitcoin's fixed supply and predictability make it a reliable deflationary asset. Bitcoin block rewards have long incentivized Bitcoin miners to keep buying expensive mining equipment to mine more Bitcoins.
When the maximum supply is reached in 2140, no more BTC will be awarded as block rewards. At this point, the only incentive to mine Bitcoin blocks is the transaction fees earned from each transaction in the block.
However, this raises the question of whether this will be a sufficient incentive given the role miners play in ensuring that the network is not compromised. For the Bitcoin network to be secure, a certain level of “hash” or mining power must be maintained. Software engineer John Cantrell, in a thread, expressed optimism that the high projected value of the asset would make up for this cost enough to maintain hash power.
“These fees will remain in 2140 and depending on the Bitcoin price at the time, they will be sufficient to maintain some amount of hash power.”
Cantrell, who regularly uses his Twitter handle to educate people about Bitcoin, reveals that the generated hash power of a Bitcoin mining engine is correlated with the yield obtained from mining Bitcoin blocks.
He added that the more miners that are created, the more they are willing to spend on mining equipment. John expressed confidence that Bitcoin blocks will continue to be mined even after the supply limit is reached and the hash power will be sufficient.
“The block will continue to be mined every 10 minutes and the miner of the block will be rewarded with a transaction fee. The question is how much hash power will there be and how will it be distributed? I'm optimistic it will be enough."
Of course, this is an interesting scheme to work with because, in the end, the void must still be filled to keep it balanced and running well. We'll see! In the past few days, Bitcoin (BTC) continued to be swallowed by a deeper correction from its ATH, which colored the early month of 2022 in red that is still being watched, at a time when the US central bank's policy was in the spotlight of investors.
And ETH also experienced a similar movement with Bitcoin, which is still forming a new low in the great correction that hit since last November 2021. In this analysis, we will try to see the trend opportunities that exist based on the price action of the previous few days.
And in this article, we will share our views in technical analysis for BTC and ETH trend opportunities for the next few days. In our analysis, on the Daily time frame, the price of Bitcoin (BTC) has moved lower than the main Higher Low, which indicates the market is still being dragged by the current of fear (Fear) to approach the next Low point.
From a technical point of view this time, the price will try to see whether or not it will be able to establish a foothold in the range of the Main Support, although it is still necessary to be wary of attempts to break out to play at the psychological level of $30,000 because the Bearish bottom is still strong looming.
Apart from that, the road to a potential rally is still quite steep as the price must be able to move above the Main Resistance to validate it. Otherwise, the Bearish outlook will still be more dominant. As long as BTC can't break through $40k, BTC can still drop to $30k even though BTC has rebounded from $33k to $36k.
Technical Indicators:
MACD: MA underlies the Bearish Zone in a move below the worrying neutral point, so the turning point still requires extra effort in every attempt to establish a Bullish Zone.
RSI: This indicator is in the Oversold area, so better buying resistance can still be expected in this analysis scheme.
Main Resistance Level: $40,000
Main Support Level: $32,000
ETHUSDIn our analysis, on the Daily time frame, ETH continued to sink deeper as it moved slower than the Main Higher Low, which underlies how pessimistic the crypto market is due to global influences.
From the point of view of technical analysis this time, the Support level is what is expected to be a point of finding new footing to try to recover, where a breakdown of this level will trigger a further decline which is still highly anticipated.