The hashrate will continue to rise.
The ASICs that are coming online now (Avalon batch 2 and soon batch 3 and BFL) were purchased long ago. They will make return more than their cost to run in electricity for quite a long time (years likely) so there is no reason for their owners not to run them even if they aren't quite as profitable as they used to be.
I only think of my miners in terms of what they cost in BTC and how many BTC they will return. For example, if I'm going to buy a used Avalon for 125 BTC, I think about whether it will it return more than 125 BTC over the rest of it's life, not what the exchange rate is.
We will see more GPU miners drop out, but I suspect many of them have already dropped out and the hash power from the coming ASICs way overwhelms them anyways.
Topic: Effects of decline (Read 609 times)
It has been suggested by many that there is a strong correlation between global hash and btc / fiat exchange rates. Now we will see if the tail wags the dog.
With the downturn in the btc /fiat exchange rate, one would reasonably expect the global hash to collapse as well since mining suddenly becomes unprofitable for many. Do any of the Oracles of Delphi want to peer into their crystal balls and predict if it will come to pass?
Personally, without a collapse of global hash I would suggest that btc as a system is still healthy. Should the global hash collapse, it could certainly be seen as a sign of the apocalypse.
With the downturn in the btc /fiat exchange rate, one would reasonably expect the global hash to collapse as well since mining suddenly becomes unprofitable for many. Do any of the Oracles of Delphi want to peer into their crystal balls and predict if it will come to pass?
Personally, without a collapse of global hash I would suggest that btc as a system is still healthy. Should the global hash collapse, it could certainly be seen as a sign of the apocalypse.
Due to the roll-out of ASIC, many miners were hyper-profitable. As the exchange rate drops, they will remain profitable, just less so. It won't surprise me if the global hash rate remains the same or even continues to grow.
It has been suggested by many that there is a strong correlation between global hash and btc / fiat exchange rates. Now we will see if the tail wags the dog.
With the downturn in the btc /fiat exchange rate, one would reasonably expect the global hash to collapse as well since mining suddenly becomes unprofitable for many. Do any of the Oracles of Delphi want to peer into their crystal balls and predict if it will come to pass?
Personally, without a collapse of global hash I would suggest that btc as a system is still healthy. Should the global hash collapse, it could certainly be seen as a sign of the apocalypse.
With the downturn in the btc /fiat exchange rate, one would reasonably expect the global hash to collapse as well since mining suddenly becomes unprofitable for many. Do any of the Oracles of Delphi want to peer into their crystal balls and predict if it will come to pass?
Personally, without a collapse of global hash I would suggest that btc as a system is still healthy. Should the global hash collapse, it could certainly be seen as a sign of the apocalypse.
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