<blockquote>
  <p>Wouldn't the transaction fees for mining simply go up to cover the cost of mining?</p>
</blockquote>

<p>No, it wouldn't. Transaction fees are not related to the exchange rate. They are only related to the supply and demand of available block space. If not many people are transacting and blocks are not full, then there is an excess supply of block space and not a lot of demand for it. This will drive fees down, regardless of the exchange rate.</p>

<p>If the exchange rate were low enough that the block reward is not sufficient (regardless of the block subsidy existing), miners would simply stop mining. This will eventually reduce the cost of mining such that those who are still mining will become profitable again.</p>

CC BY-SA 4.0
2018-06-12T18:51:22.130Z
2018-06-12T18:51:22.130Z
Ava Chow
<p>If the exchange rate were low enough that the block reward is not sufficient (regardless of the block subsidy existing), miners would simply stop mining. This will drop down the security of blockchain and break the whole crypto pyramide.</p>

CC BY-SA 4.0
2018-06-13T06:07:52.773Z
Downvoted: if the price drops and miners drop off, the difficulty will eventually adjust and the system will find a new balance. It was once profitable to mine bitcoin at $50, if the price dropped there is no reason that balance could not be found again. Your answer makes it sound like balance could not be found, and cryptocurrency would be ‘broken’.
chytrik
CC BY-SA 4.0
2018-06-13T10:09:00.397Z
balance definetely could be found. at zero level :) you are welcome to downvote everything you do not like
amaclin
CC BY-SA 4.0
2018-06-12T19:19:02.310Z
2018-06-12T19:19:02.310Z
amaclin
<p>There are some media reports that state that if the BTCUSD exchange ratio drops far enough, say below $5k per BTC, that mining will no longer be profitable. But, I do not see how this makes sense given that once bitcoin reaches 21 million coins the incentive for miners is limited to the transaction fee. </p>

<p>Wouldn't the transaction fees for mining simply go up to cover the cost of mining?</p>

<mining-profitability>
If BTCUSD Price Drops Far Enough Are Transaction Fees Enough Incentive for Miners?
ADH
# If BTCUSD Price Drops Far Enough Are Transaction Fees Enough Incentive for Miners?

(Asked by: username_0 on 2018-06-12)

There are some media reports that state that if the BTCUSD exchange ratio drops far enough, say below $5k per BTC, that mining will no longer be profitable. But, I do not see how this makes sense given that once bitcoin reaches 21 million coins the incentive for miners is limited to the transaction fee.

Wouldn't the transaction fees for mining simply go up to cover the cost of mining?

**Tags:** mining-profitability


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## 2 answers

### Answer by username_1 on 2018-06-12. Score: 3 | Accepted answer

> Wouldn't the transaction fees for mining simply go up to cover the cost of mining?

No, it wouldn't. Transaction fees are not related to the exchange rate. They are only related to the supply and demand of available block space. If not many people are transacting and blocks are not full, then there is an excess supply of block space and not a lot of demand for it. This will drive fees down, regardless of the exchange rate.

If the exchange rate were low enough that the block reward is not sufficient (regardless of the block subsidy existing), miners would simply stop mining. This will eventually reduce the cost of mining such that those who are still mining will become profitable again.


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### Answer by username_2 on 2018-06-12. Score: 0

If the exchange rate were low enough that the block reward is not sufficient (regardless of the block subsidy existing), miners would simply stop mining. This will drop down the security of blockchain and break the whole crypto pyramide.

> **Comments:**
> **username_3**: Downvoted: if the price drops and miners drop off, the difficulty will eventually adjust and the system will find a new balance. It was once profitable to mine bitcoin at $50, if the price dropped there is no reason that balance could not be found again. Your answer makes it sound like balance could not be found, and cryptocurrency would be ‘broken’.  
> **username_2**: balance definetely could be found. at zero level :) you are welcome to downvote everything you do not like  

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