Many people associate the concept of mining exclusively with the extraction of new cryptomonet. The question of what happens when all the coins are mined is logical for such users. Potential investors miners wonder whether it makes sense to invest in equipment that may become useless in a few years – not because of the increased complexity, but simply because the last coin was received. Other investors who do not plan to mine, but who consider cryptocurrencies as a promising asset, also fear that the last block will be extracted and the mining will end. However, is the end of mining really going to happen and what will happen after the end of the cryptocurrency issue? We will describe in this article!
End of mining: is it possible?
What is mining? Mining is a mathematical calculation using a computer, the result of which is finding the “right solution” – a hash. When this solution is found, the miner receives a reward in the form of a coin, and the hash itself forms a block, which includes pending transactions.
At one fine moment, when the number of coins is close to the specified maximum, the reward will simply cease to be issued for the calculated hash. However, the hashes themselves must still be calculated, otherwise the transactions will not be confirmed and the users will not be able to use the cryptocurrency – transfer it and pay for it.
The number of transactions is growing daily. Judging by the development of the cryptosphere, by the time the issue of Bitcoin or another cryptocurrency, which the miners emit, will end, the number of requests for transactions can reach enormous values.
The great demand for something in one way or another entails supply, so it is obvious that when there is a need for a transaction, there will be people or companies who are ready to serve them, expecting a hash. That is the miners.
This is the predicted situation for cryptocurrency networks that exist thanks to mining. The behavior of miners, however, may differ if their interests do not meet with the needs of the network.
a) cryptocurrencies that imply emission through mining will cease to appear due to the introduction of a new technology or simply because the companies creating them will take over the issue
There may be other reasons why mining will become unprofitable. The essence is as follows: the miners will either sell unfavorable equipment, either start renting as a data center or use it for any purpose with non-related cryptocurrencies (for example, in the field of artificial intelligence).
The end of mining: leaving miners and what does this mean for cryptocurrency?
The second and third options involve the mass departure of miners from the network of a certain cryptocurrency (in the third case, they will go away altogether, but for a particular network, the result will be the same). The probability of this is not the lowest.
Income from mining now provides mainly rewards in the form of emitted coins. Of course, there are transaction fees, which also go to the miner, but this is more of a bonus than a profit from mining. Of course, at a loss and even at zero, the miners will not work.
The departure of miners from a cryptocurrency network, the operation of which is provided by mining, will naturally become a significant blow for the network – it is possible that it is fatal – for several reasons
The end of mining: how not to allow the miners to leave?
Any coins are lost at someone that broke the hard drive and someone forgot the passwords. At the time of completion of the issue, a certain number of coins are nominally operating in the network, but in fact there are fewer of them. Additional emissions are designed to cover losses and in fact it also impedes the care of miners.
However, since the problem of leaving the miners is not yet acute, the majority expects that the miners will remain for the sake of user transaction fees. The commissions in this case will inevitably increase.
Now the income from mining, especially for miners of singles, is gradually decreasing. So there is a chance that after the emission is terminated, commissions will have to be raised tenfold to keep the miners in the network. Of course, the popularity of cryptocurrency will not increase.
There are also supporters of the payment of the work of miners by a certain third cryptocurrency, which is not emitted through mining. However, this option is poorly supported by the crypto-community and its implementation has many questions.
What happens to the cryptocurrency on the market directly depends on solving the problem of network support after the end of the coin issue. There are several scripts too.
The end of mining: the completion of the issue and what to do to the investor?
In view of all this, an investor who is planning long-term investments in a cryptocurrency should pay attention to when its emission can be completed and what is waiting for the currency after that.
While the coin is being mined, the network is maintained due to the benefits received by the miners. As soon as production is over, the question of network support will arise and the appropriateness of investing in foreign currency directly depends on the answer to this question.
It is possible that by the time the leading currencies are finished mining, a technology will be invented that will support their network not only at the expense of the miners’ capacities, but, for example, at the expense of the capacity of everyone who wants to send a transaction.
Each user will become a miner in part. The currency will reach the highest possible decentralization at low commissions and will become a very attractive means of payment for most people.
However, miners, giants or other players, in who have most of the cryptocurrency, will only be able to influence the course temporarily – perhaps for a long time, but sooner or later their influence will stop, because users will see the real state of affairs and leave.
The real value of the cryptocurrency is determined by the average user and thanks to the decentralization that was originally pledged, this value will be revealed one way or another. Most likely, it will be due to the convenience of this currency, so ultimately the investor should rely on it.