consequences of the hash rate rise | Bitcointalksearch.org

buwaytress

legendary

Activity: 2968

Merit: 3684

Join the world-leading crypto sportsbook NOW!

Quote from: Amph on February 05, 2017, 02:46:59 AM

Quote from: Senor.Bla on February 03, 2017, 04:27:59 AM

Quote from: Pettuh4 on February 03, 2017, 04:22:04 AM

Quote from: Senor.Bla on February 03, 2017, 04:07:36 AM

Over the last 3 months the hash rate went up quite a bit. Difficulty is adjusting too, but at a slower rate. I wonder what he consequences might be.
I would expect the price to go down since we are mining more, but this seems not to be the case.
Will be smaller mines forced to quite since it will not be profitable anymore?
What is the reason for this rise? I did not hear anything about new hardware being deployed.

A rise in hash rates will have a corresponding increase in difficulty rate which will create artificial demand for bitcoins and so there's not going to be a decrease in prices but an increase rather and they has been the case recently.

This makes no sense. The difficulty increases every 2016 blocks. So if hash rate constantly goes up it takes the difficulty about 2 weeks to adjust and in this time we have more mined Bitcoins = more supply. I do not see why the demand should go up with a higher hash rate.

still there is no proof that more coins mined is equal to more coins dumped, in fact i believe that miners are holding big right now with this bitcoin uptrend

also when this happen usually the additional amount of coin is not that big, around 200-400 was with the previosu block reward(3800-4k coins mined instead of 3600)

so now it will be 2k at best, 200 more coins a day is hardly anything to look about

It's my personal belief as well that most of the bigger miners aren't thinking short or even medium term. They've probably got a very long-term end game in sight, so the increasing difficulty and costs is all factored in. I'd say if I were a big miner, then I'm heavily invested in the future of bitcoin. They probably take advantage of price surges to sell a little of the mined coins to offset some costs or expand but I'm more inclined to think that they're just storing as much as possible for the projected value of btc.

I understand there's a way to find out the age of coins but wouldn't know how to test above theory.

Senor.Bla

sr. member

Activity: 280

Merit: 253

Quote from: Amph on February 05, 2017, 02:46:59 AM

Quote from: Senor.Bla on February 03, 2017, 04:27:59 AM

Quote from: Pettuh4 on February 03, 2017, 04:22:04 AM

Quote from: Senor.Bla on February 03, 2017, 04:07:36 AM

Over the last 3 months the hash rate went up quite a bit. Difficulty is adjusting too, but at a slower rate. I wonder what he consequences might be.
I would expect the price to go down since we are mining more, but this seems not to be the case.
Will be smaller mines forced to quite since it will not be profitable anymore?
What is the reason for this rise? I did not hear anything about new hardware being deployed.

A rise in hash rates will have a corresponding increase in difficulty rate which will create artificial demand for bitcoins and so there's not going to be a decrease in prices but an increase rather and they has been the case recently.

This makes no sense. The difficulty increases every 2016 blocks. So if hash rate constantly goes up it takes the difficulty about 2 weeks to adjust and in this time we have more mined Bitcoins = more supply. I do not see why the demand should go up with a higher hash rate.

still there is no proof that more coins mined is equal to more coins dumped, in fact i believe that miners are holding big right now with this bitcoin uptrend

also when this happen usually the additional amount of coin is not that big, around 200-400 was with the previosu block reward(3800-4k coins mined instead of 3600)

so now it will be 2k at best, 200 more coins a day is hardly anything to look about

I am not a miner nor am i involved in the mining world, so i have no idea how they decide to keep how many coins. But i imagine they first have to cover their expenses and decide what to do with the rest. As it is a race, then i would expect them to invest in more hash power. I do not know if this means more or less Bitcoins for us to buy, but i don:t think they pay to much attention to the price. Of course they could shorten the supply and try to create a higher price, but this is an entirely different story.
But you are right 200 more coins sound not much, but it is almost 10% of the daily production, so i would expect some kind of reaction.

Amph

legendary

Activity: 3248

Merit: 1070

Quote from: Senor.Bla on February 03, 2017, 04:27:59 AM

Quote from: Pettuh4 on February 03, 2017, 04:22:04 AM

Quote from: Senor.Bla on February 03, 2017, 04:07:36 AM

Over the last 3 months the hash rate went up quite a bit. Difficulty is adjusting too, but at a slower rate. I wonder what he consequences might be.
I would expect the price to go down since we are mining more, but this seems not to be the case.
Will be smaller mines forced to quite since it will not be profitable anymore?
What is the reason for this rise? I did not hear anything about new hardware being deployed.

A rise in hash rates will have a corresponding increase in difficulty rate which will create artificial demand for bitcoins and so there's not going to be a decrease in prices but an increase rather and they has been the case recently.

This makes no sense. The difficulty increases every 2016 blocks. So if hash rate constantly goes up it takes the difficulty about 2 weeks to adjust and in this time we have more mined Bitcoins = more supply. I do not see why the demand should go up with a higher hash rate.

still there is no proof that more coins mined is equal to more coins dumped, in fact i believe that miners are holding big right now with this bitcoin uptrend

also when this happen usually the additional amount of coin is not that big, around 200-400 was with the previosu block reward(3800-4k coins mined instead of 3600)

so now it will be 2k at best, 200 more coins a day is hardly anything to look about

Raimonn

legendary

Activity: 1470

Merit: 1001

Quote from: jacaf01 on February 03, 2017, 04:31:10 AM

Hash rate increase is good for the network but most of these comes from big miners and could lead to centralisation and cabals running the mining activities.

Hash rate increase its good for the security of the bitcoin network, but not for the miners every increase on difficulty less bitcoins that you will receive (with pool minning), or more time to receive the same amount on solo mining.

tmfp

legendary

Activity: 1932

Merit: 1737

"Common rogue from Russia with a bare ass."

As the difficulty increases, so a miner's BTC return on a given hashrate falls.
Bitcoin are being mined every day, but not more because of the difficulty change, still a block about every 10 minutes.

isoneguy

hero member

Activity: 518

Merit: 501

Quote from: sir.humus on February 03, 2017, 04:48:53 AM

Quote from: jacaf01 on February 03, 2017, 04:31:10 AM

Hash rate increase is good for the network but most of these comes from big miners and could lead to centralisation and cabals running the mining activities.

It is certainly true that difficulty (in the general sense, not just numerically) will increase.
Mining profitably today is not nearly as simple as it was a year ago. The hardware is much more expensive and is less available than the CPUs and GPUs used for old fashioned mining.
If you want a profitable piece of hardware, you’re going to have to shell out some dough, and even then you may have to wait several months to receive a device that costs more to run than it mines.

but if you factor in the increase in price then you could still make more, although a decrease in price would see you without happiness.

sir.humus

hero member

Activity: 700

Merit: 500

Quote from: jacaf01 on February 03, 2017, 04:31:10 AM

Hash rate increase is good for the network but most of these comes from big miners and could lead to centralisation and cabals running the mining activities.

It is certainly true that difficulty (in the general sense, not just numerically) will increase.
Mining profitably today is not nearly as simple as it was a year ago. The hardware is much more expensive and is less available than the CPUs and GPUs used for old fashioned mining.
If you want a profitable piece of hardware, you’re going to have to shell out some dough, and even then you may have to wait several months to receive a device that costs more to run than it mines.

jacaf01

hero member

Activity: 742

Merit: 500

The revolutionary trading ecosystem

Hash rate increase is good for the network but most of these comes from big miners and could lead to centralisation and cabals running the mining activities.

Senor.Bla

sr. member

Activity: 280

Merit: 253

Quote from: Pettuh4 on February 03, 2017, 04:22:04 AM

Quote from: Senor.Bla on February 03, 2017, 04:07:36 AM

Over the last 3 months the hash rate went up quite a bit. Difficulty is adjusting too, but at a slower rate. I wonder what he consequences might be.
I would expect the price to go down since we are mining more, but this seems not to be the case.
Will be smaller mines forced to quite since it will not be profitable anymore?
What is the reason for this rise? I did not hear anything about new hardware being deployed.

A rise in hash rates will have a corresponding increase in difficulty rate which will create artificial demand for bitcoins and so there's not going to be a decrease in prices but an increase rather and they has been the case recently.

This makes no sense. The difficulty increases every 2016 blocks. So if hash rate constantly goes up it takes the difficulty about 2 weeks to adjust and in this time we have more mined Bitcoins = more supply. I do not see why the demand should go up with a higher hash rate.

Pettuh4

sr. member

Activity: 812

Merit: 251

Quote from: Senor.Bla on February 03, 2017, 04:07:36 AM

Over the last 3 months the hash rate went up quite a bit. Difficulty is adjusting too, but at a slower rate. I wonder what he consequences might be.
I would expect the price to go down since we are mining more, but this seems not to be the case.
Will be smaller mines forced to quite since it will not be profitable anymore?
What is the reason for this rise? I did not hear anything about new hardware being deployed.

A rise in hash rates will have a corresponding increase in difficulty rate which will create artificial demand for bitcoins and so there's not going to be a decrease in prices but an increase rather and they has been the case recently.

Senor.Bla

sr. member

Activity: 280

Merit: 253

Over the last 3 months the hash rate went up quite a bit. Difficulty is adjusting too, but at a slower rate. I wonder what he consequences might be.
I would expect the price to go down since we are mining more, but this seems not to be the case.
Will be smaller mines forced to quite since it will not be profitable anymore?
What is the reason for this rise? I did not hear anything about new hardware being deployed.

Topic: consequences of the hash rate rise (Read 1272 times)