When will the mining of cryptocurrencies end – the question that those who want to become a full-fledged participant in the issue of Bitcoin or other coins ask. Answering it, some talk about the issue of the main coin, while others mention soft forks, where «mining» becomes irrelevant due to the actions of developers. There are other examples that suggest that there is no unambiguous answer.
The Future of Bitcoin Mining
Experts who analyze the rate of Bitcoin emission cannot say with accuracy up to a year when the mining boom will end, because the last coin, presumably, will be mined in 100 years or more. Until this happens, the blockchain needs the computing power of the participants to decrypt new blocks and record transaction information in them.
But to prevent this from happening too early, the developers of the first cryptocurrency have provided a mechanism for the complexity of «mining», which is automatically recalculated every two weeks. This allows you to adjust the release rate of new coins. Halving also affects this — a decrease in the reward for the decrypted block.
By recording transactions in a new block, miners also earn on commission fees. When the network is overloaded, the transaction fee becomes even higher.
It is still difficult to say how new transactions will be recorded in the network after receiving the last block. But analysts believe that the team that supports the network will find a way out and the miners’ work will remain in demand.
Also, answering the question about when bitcoin mining will end, do not forget about the ever-growing price of the asset. Even working, for example, at a loss, the «earner» can expect to make a profit in the future.
One of the options for using computing power in the future is to «mine» the lost bitcoins. These are the coins that have not been moved between accounts for several years. By the time of the full issue, there will be quite a lot of them.
Can it end sooner
When mining ends all over the world and in Russia, many analysts argue, who also believe that the reason for stopping computing equipment may be the low cost of Bitcoin. When the costs of «mining» become more than the income received, the participants of the distributed network will begin to disconnect from work before they receive the last block. Nevertheless, do not forget about the complexity of mining, which should compensate for the low cost of the coin with ease of mining.
But everything can happen differently, because the cryptocurrency market has high volatility, so miners are able to increase the value of Bitcoin without selling it at low prices. Some experts believe that the coin will be worth about $ 1 million in the next decade.
When will the Ethereum mining end – another question from the «miners», which is much easier to answer. This will happen after the transition of the cryptocurrency blockchain to version 2.0. The developers decided to move away from the traditional decryption of new blocks and use the staking technology – storing a certain number of coins on special accounts for a set time.
The essence of this method is that the investor proves the share of ownership of the cryptocurrency, for which he receives new coins. He ceases to be a miner, so he will not receive a commission for conducting a transaction, validators will do this. But there is also a positive side – there is no need to purchase and maintain equipment.
Now the network is working on an algorithm where new coins are issued using mining. In this case, blockchain participants have to buy computing equipment that solves cryptographic tasks at high speed. Video cards, for example, can do this, so their prices increased significantly when «mining» became popular.
Due to the discord in the development team, the update had to be postponed to the first half of 2022. If nothing changes, then Ethereum mining may stop in the summer of next year.
Talking about when the era of mining will end, it is worth giving an example of the most «mining» country – China. The largest farms are located here, advanced ASICs are produced at local production facilities. But all this faced misunderstanding on the part of the government, which banned the decryption of blocks in a distributed network.
The decision to completely ban cryptocurrency transfers was made by the country’s authorities in the spring of 2021. Attempts to limit the «mining» of Bitcoin and other coins were made earlier, but they were milder, so they did not cause much damage.
Now illegal financial activity, as it is called by representatives of the Communist Party, is completely prohibited. This is justified by the desire of the government to protect the property of citizens, as well as to ensure financial and economic order.
The only cryptocurrency that will work in the country is the digital yuan. Representatives of the local Central Bank are engaged in its launch. The release is scheduled for the opening date of the 2022 Winter Olympics. It will not work to mine this coin, representatives of the ruling party will control the issue and circulation of money.
Similar bans also affected residents of the country living outside the state. They also cannot engage in activities related to the exchange and transfer of cryptocurrencies.