I think it can have somewhat the opposite impact.If for example the hashrate of Eth comes to RVN it will increase the difficulty of RVN a lot.Right now a Gtx 1050 ti I own does 11-13 RVN daily at just 5.7 Mhsh.When this happens unless the price of RVN increases a lot most probably miners will switch to other coins as with the difficulty increase and price staying the same it will not be worth mining RVN anymore.
Let's see what happens as no one can predict the future.
Topic: Can more hashrate translate into lower price of coin? (Read 84 times)
If the project/coin is a trash this will surely happen once miner start selling and no one is buying or there is too low demand for the coin, but look around you few good coins like ravencoin and ergo are promising, only mine good coins that have potential
i think the more appropriate description of your case is that miners will sell coins they mine to hunt for other coins if they don't see a good fundamental/price action in the short-mid term. it's not really related to hashrate, or at least the correlation is small imo.
More miners on one coin equals lower payouts because difficulty will rise but I don't let this bother me because we have more than raven coin in crypto space today, few cards are good for an actual algorithm for example ergo are more profitable to hbm2 GPU users like Vega and others and there are few ones too that are better with cryptonight algorithm
No body really knows.
best answer is maybe.
best answer is maybe.
Difficulty should adjust to keep coin emission constant, so more hashrate doesn't mean more mined coins to dump.
Higher hashrate generally means more interest in mining the coin, one reason is increased price.
Higher hashrate generally means more interest in mining the coin, one reason is increased price.
Good point. thank you for your thoughts. Appreciate it
I think it's all about the general demand for the coin and not just miners selling it to cover their mining costs. However much the miners sell their rewards, if there are people out there still buying RVN in large quantities, the price will stay up.
If it was the case of miners selling off their coins affecting the price, then Ether price wouldn't have risen all the way to $4K at some point.
The only positive impact on ETH's side I see is probably due to staking, where most coins will be put out of circulation as people try to stake them, but not just because miners stopped selling ETH. I doubt if miner coin sales have any noticeable impact on the coin price.
If it was the case of miners selling off their coins affecting the price, then Ether price wouldn't have risen all the way to $4K at some point.
The only positive impact on ETH's side I see is probably due to staking, where most coins will be put out of circulation as people try to stake them, but not just because miners stopped selling ETH. I doubt if miner coin sales have any noticeable impact on the coin price.
Been wondering this for a while now and wanted to hear what others thought. Lets take RVN. Right now, majority of alt miners are mining eth, and when eth goes to POS, they will either retire or switch to a new coin. eth has MASSIVE hash power, and if I am a simple HODLer of RVN and I bought it at say 5 cents, I assume there will be many miners who would sell RVN they mine immediately to cover their power bills or use the money to buy other coins (btc, eth, ada, etc).
So what does this mean? so if my theory holds true, all the POW coins today that people have bought and are simply HODLing, when the massive hash power of the eth miners comes knocking and they begin to miner all those other POW coins, those who bought prior to the hashpower, might see a dip in the coin price as a result?
Thoughts? What do people think?
PS. I guess if there is some truth to my theory, when eth goes to POS and eth miners are no longer selling eth for power costs or buying other coins, I wonder if that would have an opposite effect reducing the number of eth sellers because us miners are no longer selling it for power costs,etc
So what does this mean? so if my theory holds true, all the POW coins today that people have bought and are simply HODLing, when the massive hash power of the eth miners comes knocking and they begin to miner all those other POW coins, those who bought prior to the hashpower, might see a dip in the coin price as a result?
Thoughts? What do people think?
PS. I guess if there is some truth to my theory, when eth goes to POS and eth miners are no longer selling eth for power costs or buying other coins, I wonder if that would have an opposite effect reducing the number of eth sellers because us miners are no longer selling it for power costs,etc
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