Topic: does mining cost affect btc price? (Read 414 times)
Well, what I will say is that people tend to look at the dollar equivalent of bitcoin and think of mining dirsctly affecting mining but that isn't the real user case. The cost of mining is set to get faster transactions so anyone can choose whether low, medium or high. People compare the txn cost of eth with btc. Ask yourself that if eth and btc were of the same price, which of the two would have been charging higher?
I don't actually agree with this one. though, mining increases the number of bitcoin a lot. Yet I think what really affects the price of bitcoin is really the matter of demand. It's a question of demand and supply. As long as we have demand for it the price is always gonna be high and could be low if there is correction or regulation.
Miners selling coins to cover costs could affect the price of Bitcoin.
Mining costs could influence the transaction fees more than the price of Bitcoin imho.
Mining costs could influence the transaction fees more than the price of Bitcoin imho.
Thats true but it is partly true about the selling affecting the prices of the bitcoin. I mean just imagine the number of miners who are immediate seller of the coins might be very less. If the big cartels do that then yeah off course its huge amount they might be dumping and thus making the major change on the market scale too.
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Mining costs could influence the transaction fees more than the price of Bitcoin imho.
Is this correct or is it exactly opposite to this one? I mean isn't it is when the prices of bitcoin increases a lot then the people start transacting heavily and thus increasing the load on miners. This in turn makes the miners to increase the fees heavily and the end result. I mean I am confused is it the way you say it or me?
However, the most important distinguishing feature of bitcoin is its decentralized nature. The treatment and release of bitcoins is not controlled by any institution.
there was a saying is that ,btc's price can not drop down bellow its mining cost.e.g,if btc's mining cost is 5000 $,btc cant drop bellow 5000 $,if the price is lower than 5000$ ,the mines could be paralysised ,so btc transacion cant work either.the statement sounds reasonable.to avoid this situation ,btc's price must be above its mining cost.
On other hand, the difficulty of mining btc is growing harder and harder ,if one day the mining cost goes up to the moon ,e.g, 100,000,000 $,would the price of btc also go to that level of price?but the height of price cant be maintained that high,people would of course change their btc to fiat currency,so i think its quite contradictory to ballance btc price and the mining cost.what do you think of this paradox?
It's beyond the calculations of the bitcoin creator and that puts pressure on the dev team of bitcoincore. I believe the future will have better bitcoin solutions. It is possible that the bitcoin is changed to a larger coin that has a larger number of tokens. On other hand, the difficulty of mining btc is growing harder and harder ,if one day the mining cost goes up to the moon ,e.g, 100,000,000 $,would the price of btc also go to that level of price?but the height of price cant be maintained that high,people would of course change their btc to fiat currency,so i think its quite contradictory to ballance btc price and the mining cost.what do you think of this paradox?
there was a saying is that ,btc's price can not drop down bellow its mining cost.e.g,if btc's mining cost is 5000 $,btc cant drop bellow 5000 $,if the price is lower than 5000$ ,the mines could be paralysised ,so btc transacion cant work either.the statement sounds reasonable.to avoid this situation ,btc's price must be above its mining cost.
On other hand, the difficulty of mining btc is growing harder and harder ,if one day the mining cost goes up to the moon ,e.g, 100,000,000 $,would the price of btc also go to that level of price?but the height of price cant be maintained that high,people would of course change their btc to fiat currency,so i think its quite contradictory to ballance btc price and the mining cost.what do you think of this paradox?
Yes, I think the cost of mining will affect the lowest price of bitcoin. When the lowest price of bitcoin is lower than the long cost of mining, the miners will stop working, which will affect the operation of the bitcoin network. So I don't think bitcoin will last much longer than the cost of mining.On other hand, the difficulty of mining btc is growing harder and harder ,if one day the mining cost goes up to the moon ,e.g, 100,000,000 $,would the price of btc also go to that level of price?but the height of price cant be maintained that high,people would of course change their btc to fiat currency,so i think its quite contradictory to ballance btc price and the mining cost.what do you think of this paradox?
Theres no such thing. Suppose the price drops to $3k today then all the miners who aren't profitable will shut their miners down and this will cause the hash rate to drop and this drop will lower the bitcoin mining difficulty which in result will lower the cost to mine bitcoin. The miners will keep on shutting and the hash rate will keep on dropping until it reaches a point where its profitable to mine again.
there was a saying is that ,btc's price can not drop down bellow its mining cost.e.g,if btc's mining cost is 5000 $,btc cant drop bellow 5000 $,if the price is lower than 5000$ ,the mines could be paralysised ,so btc transacion cant work either.the statement sounds reasonable.to avoid this situation ,btc's price must be above its mining cost.
On other hand, the difficulty of mining btc is growing harder and harder ,if one day the mining cost goes up to the moon ,e.g, 100,000,000 $,would the price of btc also go to that level of price?but the height of price cant be maintained that high,people would of course change their btc to fiat currency,so i think its quite contradictory to ballance btc price and the mining cost.what do you think of this paradox?
Yes, I think the cost of mining will affect the lowest price of bitcoin. When the lowest price of bitcoin is lower than the long cost of mining, the miners will stop working, which will affect the operation of the bitcoin network. So I don't think bitcoin will last much longer than the cost of mining. On other hand, the difficulty of mining btc is growing harder and harder ,if one day the mining cost goes up to the moon ,e.g, 100,000,000 $,would the price of btc also go to that level of price?but the height of price cant be maintained that high,people would of course change their btc to fiat currency,so i think its quite contradictory to ballance btc price and the mining cost.what do you think of this paradox?
In my opinion, the cost of extraction will not affect the bitcoin value. But the operators themselves are smart investors. The paradox here is that they exploit to hold for change according to supply and demand rules. They can create long term FUDs without much impact on their process.
there was a saying is that ,btc's price can not drop down bellow its mining cost.e.g,if btc's mining cost is 5000 $,btc cant drop bellow 5000 $,if the price is lower than 5000$ ,the mines could be paralysised ,so btc transacion cant work either.the statement sounds reasonable.to avoid this situation ,btc's price must be above its mining cost.
On other hand, the difficulty of mining btc is growing harder and harder ,if one day the mining cost goes up to the moon ,e.g, 100,000,000 $,would the price of btc also go to that level of price?but the height of price cant be maintained that high,people would of course change their btc to fiat currency,so i think its quite contradictory to ballance btc price and the mining cost.what do you think of this paradox?
According to me, the valuation of BTC is somehow related to BTC but not that much completely because there are millions of miners through out the world, who are mining and according to which there should be the fluctuation in the valuation of BTC every second but it is not so. The valuation of BTC is mainly depends on the number of investors investing into BTC and the market price, higher the number of investors, higher will be the valuation of BTC. On other hand, the difficulty of mining btc is growing harder and harder ,if one day the mining cost goes up to the moon ,e.g, 100,000,000 $,would the price of btc also go to that level of price?but the height of price cant be maintained that high,people would of course change their btc to fiat currency,so i think its quite contradictory to ballance btc price and the mining cost.what do you think of this paradox?
I think the ming don't have any affects on bitcoin price, because the mean reasons why bitcoin rises up and slowong down is the market price, the more investors on bitcoin the higher its value is but when its not then it will gp down.
in my opinion that can`t be true because every miner has a different cost of mining which depends on some other factors in addition miners can mine and hold btc to increase by making the mining with lower costs than the price.
As far as I know that the btc price will affect the cost of mining, formerly the cost of mining is cheap and over time and bitcoin prices continue to increase then the cost of mining is also increasing. That's what I see so far.
Miners keep shifting from one coin to another just like investors do when bitcoin's price goes down or up. Miners will always mine the coin that is profitable for mining s mining cost is quite unlikely to affect price directly.
Its price mostly depend upon demand because supply is always limited regardless of number of miners mining it.
Its price mostly depend upon demand because supply is always limited regardless of number of miners mining it.
I agree. It's just that mining, right now, has been one of the most difficult and advanced ventures that not many dare to actually try it. It's expensive to support, plus the capital you actually need to shed off just to set up not one but several mining rigs just for the venture to be profitable. And as many coins are reaching their market cap, it becomes increasingly harder to mine coins. which means, I think that there is an effect to Bitcoin how much cost is needed for it to be mined. Although I think that it's not significant because there has been a lot of Bitcoin in circulation now, and whatever is being mined are just additional assets to do business with.
Yes i think is is true that bitcoin mining cost affect for drop down bitcoin price.Mining bitcoin cost is very hige and people can not mining bitcoin now.If bitcoin mining cost going to low all people mining in bitcoin and as soon as bitcoin price winn increase soon.
the more benefit from bitcoin miner, the more people want to be a bitcoin miner, the more people who are interested in bitcoin, then the price of bitcoin will rise
It is only natural that many would argue that bitcoin prices will not be lower than mining costs because miners do not want to lose, let alone miners' services is to confirm a bitcoin transaction within every block they mine. These factors obviously affect the bitcoin price and I'm sure bitcoin will continue as long as the miners are still actively doing their activities.
It affects but nothing more. It can determine the lowest price of Bitcoin but not the highest. Bitcoin is not made of mining. So its legit is not in the future. Prices of long-term Bitcoin prices will be trending.
I think it does not matter much because mining Btc also requires investment and operational costs.
there are still many ways to get btc. maybe someone can explain in more detail
there are still many ways to get btc. maybe someone can explain in more detail
there was a saying is that ,btc's price can not drop down bellow its mining cost.e.g,if btc's mining cost is 5000 $,btc cant drop bellow 5000 $,if the price is lower than 5000$ ,the mines could be paralysised ,so btc transacion cant work either.the statement sounds reasonable.to avoid this situation ,btc's price must be above its mining cost.
On other hand, the difficulty of mining btc is growing harder and harder ,if one day the mining cost goes up to the moon ,e.g, 100,000,000 $,would the price of btc also go to that level of price?but the height of price cant be maintained that high,people would of course change their btc to fiat currency,so i think its quite contradictory to ballance btc price and the mining cost.what do you think of this paradox?
In actual here this factor joined with the bitcoin's price indirectly .On other hand, the difficulty of mining btc is growing harder and harder ,if one day the mining cost goes up to the moon ,e.g, 100,000,000 $,would the price of btc also go to that level of price?but the height of price cant be maintained that high,people would of course change their btc to fiat currency,so i think its quite contradictory to ballance btc price and the mining cost.what do you think of this paradox?
Most of the people where mining profitable make mining of the btc ( e.g in China ) but at that cost at which they get bitcoin don't ant bitcoin to sell Because they want make some profit from the bitcoin sell at high. Price , so surely they will hold bitcoin for that time until the price get up than at hat rate they made bitcoin .
So here we can say that there is a type of basic support of the price of the bitcoin with the miners mining rate of cost .
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