Why would it? Those who have invested in dedicated mining hardware aren't going to switch it off just because the reward has halved. At least not until mining fails to pay for the electricity that goes into it (but I don't expect that will ever happen.)
This is what I don't understand about bitcoin. With my extremely small amount of knowledge about it, I thought the idea was to make it so that the rewards for mining were aligned closely with the price of electricity.
But is this the price of electricity in the USA? What about hiring people to do mining in countries with cheaper electricity?
What about if some miners had a solar panel on the roof? Although, as I write this, it occurs to me that at some point, it would be more economical to sell the solar generated electricity back to the grid, rather than use it for mining hardware...
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> I expect the difficulty to halve.
Why would it? Those who have invested in dedicated mining hardware aren't going to switch it off just because the reward has halved. At least not until mining fails to pay for the electricity that goes into it (but I don't expect that will ever happen.)
This is what I don't understand about bitcoin. With my extremely small amount of knowledge about it, I thought the idea was to make it so that the rewards for mining were aligned closely with the price of electricity.
But is this the price of electricity in the USA? What about hiring people to do mining in countries with cheaper electricity?
What about if some miners had a solar panel on the roof? Although, as I write this, it occurs to me that at some point, it would be more economical to sell the solar generated electricity back to the grid, rather than use it for mining hardware...
I think US has incredibly cheap electricity.
>(but I don't expect that will ever happen.)
You mean happen again? Like it did last summer?