FACTORES THAT AFFECT THE BITCOIN RATE/VALUE

Xenland

legendary

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I'm not just any shaman, I'm a Sha256man

I plan on future bussiness retailing stores and i shall deffinatly have a section that will report how much must be converted to usd(for taxes, labor, etc) and how much bitcoins are used on average.

With this kind of open information future entrepenurs can use this to spark ideas to start bitcoin bussinesses to accomdate this continuing use of usd/fiat and what bitcoin community needs. Awsome idea.

Quote from: xali on June 20, 2011, 01:49:14 AM

Quote from: Xenland on June 19, 2011, 01:38:38 AM

Quote from: xali on June 19, 2011, 01:19:06 AM

can someone clarify how mining affects the value of bit coins?

One reason is that as the difficulty goes up the network automatically decides to reward 25BTC instead of 50BTC thus making it hard to obtain by mining, thus making it more valuable to miners and not wanting to sell them at low values because of electricity costs.

That of course was a really blunt theory but by this time hopefully there will be enough shops to control the value of bitcoins instead of miners controlling the value.

Another factor is bitcoin shops vs cashout to fiat ratio not only is it dependent on the shops but the users aswell. The more shops cashout the less value the bitcoins have since more people will have a lot making it inflate but if its a one time thing the miners will eventually balance this out. Also this is dependent on the miners and the consumers they can control the price if they refuse to buy and boycot a service or product

i think it should be standard procedure for all shops to state whether they cash out or not. would help in studying the market or something

nhodges

sr. member

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Quote from: ?? on ??

Lulzsec

Came here to say hackers. :]

99Percent

full member

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I think its a terrible idea to have a BTC exchange right now like MTGox. Bitcoins are used more as asset than currency. A more reasoned way to trading bitcoins is to bid and sell them in an auction like on ebay specially in large quantities. As long as the marketbase for Bitcoins as currency is limited. Real time exchange will only cause rates to fluctuate wildly.

xali

member

Activity: 163

Merit: 10

Quote from: Xenland on June 19, 2011, 01:38:38 AM

Quote from: xali on June 19, 2011, 01:19:06 AM

can someone clarify how mining affects the value of bit coins?

One reason is that as the difficulty goes up the network automatically decides to reward 25BTC instead of 50BTC thus making it hard to obtain by mining, thus making it more valuable to miners and not wanting to sell them at low values because of electricity costs.

That of course was a really blunt theory but by this time hopefully there will be enough shops to control the value of bitcoins instead of miners controlling the value.

Another factor is bitcoin shops vs cashout to fiat ratio not only is it dependent on the shops but the users aswell. The more shops cashout the less value the bitcoins have since more people will have a lot making it inflate but if its a one time thing the miners will eventually balance this out. Also this is dependent on the miners and the consumers they can control the price if they refuse to buy and boycot a service or product

i think it should be standard procedure for all shops to state whether they cash out or not. would help in studying the market or something

Xenland

legendary

Activity: 980

Merit: 1003

I'm not just any shaman, I'm a Sha256man

Quote from: xali on June 19, 2011, 01:19:06 AM

can someone clarify how mining affects the value of bit coins?

One reason is that as the difficulty goes up the network automatically decides to reward 25BTC instead of 50BTC thus making it hard to obtain by mining, thus making it more valuable to miners and not wanting to sell them at low values because of electricity costs.

That of course was a really blunt theory but by this time hopefully there will be enough shops to control the value of bitcoins instead of miners controlling the value.

Another factor is bitcoin shops vs cashout to fiat ratio not only is it dependent on the shops but the users aswell. The more shops cashout the less value the bitcoins have since more people will have a lot making it inflate but if its a one time thing the miners will eventually balance this out. Also this is dependent on the miners and the consumers they can control the price if they refuse to buy and boycot a service or product

EpiClock

newbie

Activity: 98

Merit: 0

Quote from: xali on June 18, 2011, 11:28:23 PM

Quote from: JTaBitCoinKing on June 18, 2011, 11:13:31 PM

I think it's effected by hackers and security specialists. Whenever a hacker steals money and people hear about it they lose a small amount of faith in the Bitcoin. Whenever a security specialists ends exploits employed by hackers, faith is naturally restored.

Clearly the future stability of the Bitcoin is very much dependent on the future network security of the internet.

no. bitcoin is not hackable. it never has been, and considering your conspiracy like posts u yourself should know that all reports of bitcoin loss is the government trying to break bitcoin publicity or people just generally being idiots

"The bitcoin" might not be hackable, but the computers and accounts where they are kept essentially in the clear are trivially easy.

xali

member

Activity: 163

Merit: 10

can someone clarify how mining affects the value of bitcoins?

JTaBitCoinKing

newbie

Activity: 28

Merit: 1

I don't know what to believe anymore.

xali

member

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Merit: 10

Quote from: JTaBitCoinKing on June 18, 2011, 11:13:31 PM

I think it's effected by hackers and security specialists. Whenever a hacker steals money and people hear about it they lose a small amount of faith in the Bitcoin. Whenever a security specialists ends exploits employed by hackers, faith is naturally restored.

Clearly the future stability of the Bitcoin is very much dependent on the future network security of the internet.

no. bitcoin is not hackable. it never has been, and considering your conspiracy like posts u yourself should know that all reports of bitcoin loss is the government trying to break bitcoin publicity or people just generally being idiots

JTaBitCoinKing

newbie

Activity: 28

Merit: 1

I think it's effected by hackers and security specialists. Whenever a hacker steals money and people hear about it they lose a small amount of faith in the Bitcoin. Whenever a security specialists ends exploits employed by hackers, faith is naturally restored.

Clearly the future stability of the Bitcoin is very much dependent on the future network security of the internet.

btcminer

newbie

Activity: 32

Merit: 0

Pretty insightful post, makes sense to me. If anyone has anything to add, do so.

Some people think mining difficulty affects the price as well. But as shown lately, bitcoin has dropped in value, but mining difficulty has not. I'd say it's more likely that 'difficulty' follows the price rather than the price follows difficulty. But as people have purchased hardware for mining, they will likely be mining until it becomes a loss leader.

xali

member

Activity: 163

Merit: 10

What are things do you think/know that significantly influence the value of bitcoins?

I know 2 very good ones. If you all post a bunch of good ones i'll edit this post to be more accurate

and of course, if a similar topic already exists then please post link!

Banks do not operate on the weekends, so most people do not get their funds until monday or so. Which means people on the weekend can ONLY sell bitcoins, not buy them. This should contribute to why the price drops every weekend and rises every tuesday or so.
The status of silkroad being up or down signifies wether the value is going up or down. though exactly how this works I do not know
If someone makes a large sell/buy order (without using dark pools) then people, like the sheep they are will follow suit and also sell/buy like the large order. Yes if you are rich you can control the market

The more people/places/vendors/etc that accept bitcoins as money the more... popular bitcoin gets? How does this directly relate to the market? OH OH I know, people need to BUY bitcoins (which raises the value) and then they SPEND it (which means that it isn't being sold!!). The more bitcoins being spent the less they are being sold. Is that it? But then that means that the vendors themselves aren't going to sell the bitcoins, and I'm PRETTY sure that all of them sell it right away to make accurate their prices which is usually dependent on the very volatile exchange rate.

someone correct me plz

Topic: FACTORES THAT AFFECT THE BITCOIN RATE/VALUE (Read 1805 times)