Price and hash rate are related but sometimes, for example after a bubble peak, they can diverge.
As in the hash rate goes higher and the price goes down?
Topic: Bitcoin price vs. hash rate? - page 2. (Read 12085 times)
As in the hash rate goes higher and the price goes down?
Price and hash rate are related but sometimes, for example after a bubble peak, they can diverge.
It will...Bitcoin will hit solid four figures in the next 6 months, as long as someone doesn't do a major dump causing panic or we don't have another mtgox situation.
Needs to be seen. The earlier peak of $1,242 was achieved as a result of extensive market manipulation by Mt Gox. I just hope that this time around it will be achieved through legitimate means.
At the current price and difficulty, assuming $0.15/kWhr electricity cost, you would need to be eating up almost 8 watt/GH/s not to beat the cost of electricity. Almost every ASIC ever made is still profitable to run. Even BFL 65nm units still return about 100% versus the cost of electricity.
Yep. If the price keeps climbing I might finally get that ant miner I have been eying.
Open use of Dollars was outlawed in Soviet USSR. They were used anyway and to an extent, there was a market just in dollars and prices for them. Governments are made up of people who then themselves might defy their own laws, dont worry about laws worry about if bitcoin is useful or not in future vs its competition
Actually it could happen all it takes is for a sovereign governments to collectively outlaw use after signing a treaty to that effect.
btc will die if no one use it
Never happen. i have always wondered what happens to bitcoin when everyone stops mining because its not worth it and the hash is to difficult? will bitcoin die then?
As hash rate increases,To mine one BTC will cost more (upgrade rig or take more time with the same rig), the price will increase as well. More people will buy and hold it.
As long as the cost to run a specific bitcoin miner is below the USD equivalent of bitcoin that the miner produces then the machines will continue to be used.
There are too many preorders for bitcoin miners for the hashrate grown to slow substantially.
There are too many preorders for bitcoin miners for the hashrate grown to slow substantially.
At the current price and difficulty, assuming $0.15/kWhr electricity cost, you would need to be eating up almost 8 watt/GH/s not to beat the cost of electricity. Almost every ASIC ever made is still profitable to run. Even BFL 65nm units still return about 100% versus the cost of electricity.
Yes, but profitable to run =/= profitable to buy
At the current price and difficulty, assuming $0.15/kWhr electricity cost, you would need to be eating up almost 8 watt/GH/s not to beat the cost of electricity. Almost every ASIC ever made is still profitable to run. Even BFL 65nm units still return about 100% versus the cost of electricity.
it will be interesting to watch what would happen if price drops to $100 or even less then that.
How many miners would stop, how many companies selling hash rates would bankrupt
Avalons is already unprofitable.How many miners would stop, how many companies selling hash rates would bankrupt
TerraMiners will produce no profit if bought today. I'll show some calculations soon.
Beeetcoin is a bubble!
We're currently in another fase; the bitcoin has gained value again! Yeah!
Some people might have restarted mining now, as it's more profitable again.
Yes, many people start mining not for the current reward that should be negative or cero, but they hope in the future the price will increase, so they will make alo of ROI then..
if you were mining in june-july of 2013 you surely were not making roi at $100, but when the price skyrocketed you did it.
it will be interesting to watch what would happen if price drops to $100 or even less then that.
How many miners would stop, how many companies selling hash rates would bankrupt
Avalons is already unprofitable.How many miners would stop, how many companies selling hash rates would bankrupt
TerraMiners will produce no profit if bought today. I'll show some calculations soon.
Beeetcoin is a bubble!
We're currently in another fase; the bitcoin has gained value again! Yeah!
Some people might have restarted mining now, as it's more profitable again.
it will be interesting to watch what would happen if price drops to $100 or even less then that.
How many miners would stop, how many companies selling hash rates would bankrupt
Avalons is already unprofitable.How many miners would stop, how many companies selling hash rates would bankrupt
TerraMiners will produce no profit if bought today. I'll show some calculations soon.
Beeetcoin is a bubble!
it will be interesting to watch what would happen if price drops to $100 or even less then that.
How many miners would stop, how many companies selling hash rates would bankrupt
How many miners would stop, how many companies selling hash rates would bankrupt
it is smart to stop mining when the value of BTC flows is below your electricity cost because you can purchase bitcoins more cheaply than you can mine them and you are saving wear and tear on your gear. Of course if you get pleasure from mining which many people do then you are going to keep on hashing.
btc price falling down but hash rate raise up ... 
You should expect some carryover of continuing difficulty increase or relative stability for some time after a price collapse. Most Bitcoin hardware is pre-ordered in one way or another. Miners will be taking delivery of prepaid units for the rest of 2014 regardless of the BTC price. Even if the BTC price becomes abysmally low, miners will still continue to add their hardware to the network so long as it earns more than the cost of electricity (and maybe even if it earns less, if the miner is financially irrational).
However, we have seen some hashrate lost today, so there is some category of miner that is immediately sensitive to price.
Indeed. Many miners stop mining when they see a huge price drops which is in my opinion not too smart ... because soon or later they will start to mine again
but - I am not a miner so I dunno what would I do in their pair of shoes btc price falling down but hash rate raise up ...
You should expect some carryover of continuing difficulty increase or relative stability for some time after a price collapse. Most Bitcoin hardware is pre-ordered in one way or another. Miners will be taking delivery of prepaid units for the rest of 2014 regardless of the BTC price. Even if the BTC price becomes abysmally low, miners will still continue to add their hardware to the network so long as it earns more than the cost of electricity (and maybe even if it earns less, if the miner is financially irrational).
However, we have seen some hashrate lost today, so there is some category of miner that is immediately sensitive to price.
It has always been assumed that the hash rate follows the price. I would suggest that there is a real but weaker effect the other way around. When the hash rate goes up relative to the price, individuals look to exit the mining game and are no longer consumers of new mining hardware. As the mining hardware market is probably a significant slice of bitcoin trade any drop would also drop demand for and the value of bitcoin. This effect may well increase the size of the ups and downs leading to higher total volatility.
Yes, a feedback mechanism like this will be happening and others too.
I think mining and expectations have a big part to play in the rise and ring-down patterns that keep cropping up in the price chart.
In markets it seems all dimensions that may be found are fully cross coupled:
some couplings are strong.
some much weaker.
all couplings carry some information.
many couplings take abstract paths (psychology).
It has always been assumed that the hash rate follows the price. I would suggest that there is a real but weaker effect the other way around. When the hash rate goes up relative to the price, individuals look to exit the mining game and are no longer consumers of new mining hardware. As the mining hardware market is probably a significant slice of bitcoin trade any drop would also drop demand for and the value of bitcoin. This effect may well increase the size of the ups and downs leading to higher total volatility.
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