Topic: 1 BTC = 20 USD (Read 32120 times)

Such necroposting, much spam. I'm pretty sure a lot of people wouldn't even read what EpyxZ posted and what is his reason to do this.

Let's all take a moment to think if for just a day, we get the chance to go back to the past and buy BTC for 20$. If all of us didn't doubt at the time when Bitcoin was introduced to us, then every single person that's commenting on this thread would be millionaires and wouldn't be needing to join any signature campaign. We might even have our own signature campaign for our very own company. Funny how things turned out for doubters like us.

Chill out... I'm just trying to bring some perspective.

Dude that was stated in the context of hitting $1000 per BTC during the 2011 calender year.  Don't be a dick.

How about now?

Edit: Just voted... ah hindsight

Wow. Last time I checked the price for one bitcoin was 8-9 dollars. Now it's $29! Holy smokers. Some people have no doubt already become super wealthy.

Now I'm sure some competing currencies will pop up. Or governments will make a total ban on this kind of digital currencies.

Well the first was $2, then this poll was $20... so I'll put one up now polling for a $200 value...

Edit: Here we go... https://forum.bitcoin.org/index.php?topic=13338.0

Or deepbit's fake block chain and false transactions

Alex. I suggest you should start a new poll ehehe

2nd best way to say it is with chickens and eggs.

Best way to say it, I think, is difficulty provides lower bound on price (as measured in mining input costs).

This is not certain.  When difficulty is higher than the price, coins are cheaper to get by buying than by mining.  So people buy, which pushes the price up.

Ergo, difficulty drives price.  And price drives difficulty.  Two-way causality.

Well I read "At the desired rate of one block each 10 minutes, 2016 blocks would take exactly two weeks to find. If the previous 2016 blocks took more than two weeks to find, the difficulty is reduced. If they took less than two weeks, the difficulty is increased. The change in difficulty is in proportion to the amount of time over or under two weeks the previous 2016 blocks took to find."

as "If you have too much computing power and go to fast, we raise diff and throttle you back until the equilibrium of x blocks per time unit y is back in play".

If that's wrong, then I have no idea how to read/understand that wiki entry.

You completely misunderstood.

bitcoinmonitor.com is showing a flurry of trading activity but no real transactions.  I assume that's an error rather than the market getting into a speculative frenzy with nothing backing it up.

Well the wiki says diff adjusts to the time it takes to find a block, and the more hashrate you throw at guessing for it, the more likely it becomes.

Thus it seems to me that it's the hashrate increasing difficulty, lest I completely misunderstood what's in the wiki.

I assume you saying "more people" is a roundabout way of saying more total hash per second.



In turn, I should probably add my core point again:

If you make 1 BTC a day at 10$ let's call the "attraction" is 1.

If you make 1 BTC a day at 20$ the attraction is 2, if it's 1 a day for 5$ it's 0.5, yea?

So:
If I make 1 per day for 10$, 1.
If I make 2 per day for 5$, 1.
If I make 0.5 per day for 20$, 1.
If I make 0.25 per day for 40$, 1.


So even as price quadruples, if I only make a quarter as many BTC, the "attraction", for new people or old, remains the same, because the PAY they get "per hour" of time invested just remains the same.

There might be an initial "zomgwtfbbq so many munnies per btc" moment and rush to join, but as soon as they realize how long it takes to EARN one, they will realize what that translates to in money per time..and that money per time stays relatively constant while price rises in relation unless price really explodes.
If price stays steady as difficulty explodes? People either hoard(i.e. demand or wait until a certain wage per hour comes back in) or leave, I suspect.

Nope.  Difficulty snaps to keep pace with price.  The more valuable bitcoins are, the more people want to mine.  Pretty simple, really.

If I am the one choosing where to place my offer price wise, then I make up that part of the market at the size of my personal liquidity. Therefore I MAKE the market price with my offer.
I decide on how much I am willing to ASK(result) according to current difficulty(cause).

Difficulty => ask price of market spot "me".

As long as enough people feel the same way as me (and it might be them that do causing the uptrend, or it is simply investors/speculators buying the dips, I have no idea), we all together create a constant updrift in offers / ASK price.

I thought the total hashrate drove difficulty from what I read.

Hoard moar until either everyone does(=>price explosion again until I like it) or people drop out and thus drop difficulty(more BTC per time span make lower price acceptable).

Difficulty thus affects what price I personally am willing to accept as feasible and whether I provide liquidity in form of tradeable offers at all(instead of just putting out offers xx$ away from current place for later).

I win. 

Ha! ... China just got dealt to.

I think we are in the clear people.

At least you could admit that.  Difficulty affects what an individual miner can earn in a day, but not the overall supply.  There is 7200 new bitcoins created each day, regardless of the difficulty or the market price.  This will cut in half in January of 2013.