The fixed daily supply nature will make exchange rate's rise and fall much dramatic than traditional currency, since the supply can not be adjusted to demand, exchange rate is the only variable
But this is considered as the best feature of bitcoin, just by looking at exchange rate you will know the demand is weak currently. With fiat money it is much more difficult to see the demand since FED is changing the money supply all the time
Topic: Miners are killing bitcoin - page 6. (Read 10131 times)
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If 1 BTC = 5 USD = NO miner
I will mine, and so will others. In fact, I've never sold a single bitcoin that I've mined, and I've been mining since 2010.
Low difficulty? No problem. Open the Bitcoin console and type "setgenerate true" and keep the hashes coming.
People are panicking now, because the price is falling. When price rises again, people will feel differently.
Mining isn't going away.
you will be on loss. I am not sure why someone would do that.
One miner alone can earn up to 1-2 BTC per month
calculate yourself : http://blockchained.com/profit/index.php
Quote
If 1 BTC = 5 USD = NO miner
I will mine, and so will others. In fact, I've never sold a single bitcoin that I've mined, and I've been mining since 2010.
Low difficulty? No problem. Open the Bitcoin console and type "setgenerate true" and keep the hashes coming.
People are panicking now, because the price is falling. When price rises again, people will feel differently.
Mining isn't going away.
The price drop in 2011 was especially painful. >$25 per BTC to <$5 per BTC. That one really hurt.
And yet, mining continued.
And yet, mining continued.
Yes, mining continued because the electricity bill was OK for that year, 2011.
Now, you have to spend a lot of money on electricity and hardware otherwise you won't make any profit.
You cannot mine by using your PC anymore.
The price drop in 2011 was especially painful. >$25 per BTC to <$5 per BTC. That one really hurt.
And yet, mining continued.
And yet, mining continued.
Yes, mining continued because the electricity bill was OK for that year, 2011.
Now, you have to spend a lot of money on electricity and hardware otherwise you won't make any profit.
You have the cost of the mining computers, storage space, and energy for cooling and powering the mining machines.
The profit in bitcoin mining is all about making sure that the selling price (or stored trading value) of the mined bitcoins is greater than the cost to mine them in the first place.
As the Bitcoin mining profitability is all about getting the hash rate (speed of calculation) high enough, while the cost of hardware and energy is low enough. Even so, because bitcoins become more difficult to create, the existing hardware (no matter how large its current hash rate) will quickly obsolete.
You cannot mine by using your PC anymore.
If 1 BTC = 5 USD = NO miner
The price drop in 2011 was especially painful. >$25 per BTC to <$5 per BTC. That one really hurt.
And yet, mining continued.
And yet, mining continued.
One thing is clear: Bitcoin is many people's first investment. What people are experiencing with the price drop happens every single day in other investment markets. People must learn the hard way.
Watch this video from the ol' days MtGox, and pay attention to the price. Remember, this was BEFORE the big spike up over $1000.
https://www.youtube.com/watch?v=K2ku1A5Ox8U
People panic. Prices go up and prices go down. It's all part of the game.
Watch this video from the ol' days MtGox, and pay attention to the price. Remember, this was BEFORE the big spike up over $1000.
https://www.youtube.com/watch?v=K2ku1A5Ox8U
People panic. Prices go up and prices go down. It's all part of the game.
Thanks! Just watched it in some other thread on this forum, and was mesmerized by how price was dropping before the 2013 craze. I'm holding my breath and observing the whole picture to unveil.
Most of the postings atm can be described in one only word: Panic
Y'all can go over to the dumping part now, instead of extending your pain.
haha. Well said.Y'all can go over to the dumping part now, instead of extending your pain.
Most of the postings atm can be described in one only word: Panic
Y'all can go over to the dumping part now, instead of extending your pain.
Y'all can go over to the dumping part now, instead of extending your pain.
One thing is clear: Bitcoin is many people's first investment. What people are experiencing with the price drop happens every single day in other investment markets. People must learn the hard way.
Watch this video from the ol' days MtGox, and pay attention to the price. Remember, this was BEFORE the big spike up over $1000.
https://www.youtube.com/watch?v=K2ku1A5Ox8U
People panic. Prices go up and prices go down. It's all part of the game.
Watch this video from the ol' days MtGox, and pay attention to the price. Remember, this was BEFORE the big spike up over $1000.
https://www.youtube.com/watch?v=K2ku1A5Ox8U
People panic. Prices go up and prices go down. It's all part of the game.
I have a lot to lose, when Bitcoin fails, but I still enjoy this threads. A lot to laugh about.
Yeah, nothing has really changed though, it's still the little guy getting ground into the floor. As the price goes lower more people feel the pain and then they start to get angry - some of that anger is boiling over on this thread.
Some people feel that they were duped by all the "To the Moon!" ranting when the price was high, they believed that by getting in they'd be early adopters before the masses got on board... now they're thinking that the masses won't get on board... the dream is over, bitcoins bought between $500 - $1000 are worth less than $250, corporate miners are depressing prices further as they sell into weakened demand... yeah they are mad, angry and hurting.
Tough times for some folks... tough times.
they have no choice but to sell coins to meet costs, the question on my mind is how does anyone still think proof of work was a good idea
Proof of Work is terrible idea, I vote for abandoning it completely especially offline, where I wanna be paid for doing no work whatsoever.
Bitcoin is fine. Miners help give it value.
You noobs need to get used to price fluctuations.
I'm sorry you all bought higher than the current spot price, and therefore cannot sell your bitcoins for a profit, but everyone here knows Bitcoin, as an investment, is high risk. You ALL knew that.
Many people are doing just fine with the current price. Sure, a higher price would be nicer, but some of us bought BTC at $5 and $10 and $20 each. Or GPU mined a ton of bitcoins.
The noobs are panicking and making a noise about their losses. Ok. Then maybe you're not ready for bitcoin.
Here's a novel suggestion, use Bitcoin to buy and sell things. That's what a lot of us do. Ask people if they accept bitcoin or are willing to accept it. Don't just camp out on the exchanges all day. Use it for goods and services. Satoshi gave us this gift of bitcoin. It's amazing technology. Use it.
You noobs need to get used to price fluctuations.
I'm sorry you all bought higher than the current spot price, and therefore cannot sell your bitcoins for a profit, but everyone here knows Bitcoin, as an investment, is high risk. You ALL knew that.
Many people are doing just fine with the current price. Sure, a higher price would be nicer, but some of us bought BTC at $5 and $10 and $20 each. Or GPU mined a ton of bitcoins.
The noobs are panicking and making a noise about their losses. Ok. Then maybe you're not ready for bitcoin.
Here's a novel suggestion, use Bitcoin to buy and sell things. That's what a lot of us do. Ask people if they accept bitcoin or are willing to accept it. Don't just camp out on the exchanges all day. Use it for goods and services. Satoshi gave us this gift of bitcoin. It's amazing technology. Use it.
I'm pretty sure that if the price was going the other way hard, there would be whines about the miners hoarding and not putting fresh coins in circulation. 
I doubt it - this is certainly not true for the 'corporate' miner
I'm pretty sure that if the price was going the other way hard, there would be whines about the miners hoarding and not putting fresh coins in circulation.
they have no choice but to sell coins to meet costs, the question on my mind is how does anyone still think proof of work was a good idea
That is the basic goal of mining - mining cost aproaching the cost of mined coins! Miners have to sell the coins, so coins can circulate to the market.That equilibrium happened with GPU mining back then in 2011, now has to with ASICs.
they have no choice but to sell coins to meet costs, the question on my mind is how does anyone still think proof of work was a good idea
^
Ok, NOW you are clearly stating that we indeed are telling the same thing. Your previous wording was confusing (english is my 3rd language, and I really did read that over 10 times), that I tought you are saying difficulty is kind of changing on it's own will.
Ok, NOW you are clearly stating that we indeed are telling the same thing. Your previous wording was confusing (english is my 3rd language, and I really did read that over 10 times), that I tought you are saying difficulty is kind of changing on it's own will.
I have a lot to lose, when Bitcoin fails, but I still enjoy this threads. A lot to laugh about.
A lot to laugh about, indeed. But I'm getting a little irritated by the uninformed making statement like 'Unless difficulty drops significantly, I don't see any incentive on why miners would be taking a loss'. What is this? I read that over 10 times, thinking I misread something.
Well that does make a bit of sense in that, difficulty is a proxy for the number of miners/amount of hash, if the 3600 BTC a day pie is shared between less miners then they get more pie each.
Shhh. Don't let him in on that little fundamental secret. It appears he's quite confident in his own ignorance.
and irritated with post like this (if he=me). I know that 'secret', see my previous post https://bitcointalksearch.org/topic/m.10135314
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Difficulty doesn't drop by some king of magic, or God intervention. If mining is not profitable for some miners, they will stop mining. Less hashrate on the network - difficulty drops, and miners that are still mining get more coins.
Pay attention, please.
Uhh. You realize you re-iterated what I said in my excerpt that you claimed was false. Lol. I don't even know where you're going with this....I clearly stated dropping price forces miners out, and the price may not recover if miners drop out unless the difficulty drops enough for miners to jump back in.
Reading is fundamental, my friend.
there will no profitable for any miner because the expenses will be higher than the revenue
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