Topic: does mining cost affect btc price? - page 3. (Read 476 times)
Yes of course, the more profit that minner bitcoin get the more people want to be bitcoin minner the more people who interested to bitcoin then the price of bitcoin will be increase, its about sentiment, if people think that there are many good potential in bitcoin then people will buy bitcoin thwn cause to the increasing price of it.
I heard that bitcoin mining difficulty is adjusted after a certain number of block so it is not a problem for miners. If bitcoin price goes lower, then mining difficulty will be adjusted. I don't know how long it takes to adjust the mining difficulty.
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.
that is mostly speculation and only partly might be true as miners may not let the drop go on by doing some manipulation or something like that. but generally how much it costs to mine depends on the difficulty and nothing else.
it is actually pretty simple if you look at it like that. imagine if price was $100 and mining bitcoin could give you $110. assuming you have no cost, it barely is profit.
now imagine if price was $100 and mining bitcoin could give you $500 profit. what would have happened was that a LOT of people saw this profit and started mining until difficulty went up and profit became $110 again.
and guess what, difficulty has been rising as the price rose last year from $1000 to $20000 which shows a LOT of people saw that profit and started mining. the hashrate grow:
https://blockchain.info/charts/hash-rate
https://blockchain.info/charts/difficulty
it is actually pretty simple if you look at it like that. imagine if price was $100 and mining bitcoin could give you $110. assuming you have no cost, it barely is profit.
now imagine if price was $100 and mining bitcoin could give you $500 profit. what would have happened was that a LOT of people saw this profit and started mining until difficulty went up and profit became $110 again.
and guess what, difficulty has been rising as the price rose last year from $1000 to $20000 which shows a LOT of people saw that profit and started mining. the hashrate grow:
https://blockchain.info/charts/hash-rate
https://blockchain.info/charts/difficulty
Its a view based on simplistic view of economics, making assumption that miner wont run at a loss. This overlooks firstly that they are running a loss from day 1 to day n when they break even on capital outlay, secondly miners could anticipate future increases (so recovering loses later) and thirdly that running a small loss to cover some costs is better than not running at all.
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?
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 is the other way around. As simple as that.
I don’t think that correct.
The difficulty of mining bitcoin has been climbing rapidly for the past 30-45 days. And I don’t see the price going up for bitcoin.
The difficulty of mining bitcoin has been climbing rapidly for the past 30-45 days. And I don’t see the price going up for bitcoin.
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?
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?
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