Topic: More miners = lower Bitcoin price (not why you think) - page 2. (Read 2896 times)

The more people get into mining, the more money is spent on hardware.
The more money spent on hardware, the more BTC need to be immediately sold to pay for that hardware.

Some miners hold, some sell immediately, some sell only what is needed for electricity.

BUT...

The more individual miners participating in Bitcoin Mining, the more coins are going to be put up for sale immediately on Mt. Gox (or another exchange).

Anyone who started mining since July, for example, is going to have to immediately sell their BTC for months to come, if they want to actually break even and start MAKING money. I realize that some people are in this "for fun" or to donate their PC resources in the manner of Folding@Home.

Sure, one block is found every 10 minutes whether the total Network size is 4 Thash or 14 Thash. But if it were 4 Thash, there'd be less guys involved and it would be easier for a few guys to "hold" and make the price go up.

I realize that as time goes on, the effects of miners becomes less and less, and the total BTC in circulation increases.

But has anyone considered that the activity of miners could serve as a "tie-breaker" -- that a small percentage of the market (i.e., Miners) could theoretically make the price move up or down?

But that would never happen now, since there are too many miners involved -- too many miners to have a price greater than $5 or $6/BTC. Because too much money has already been spent on hardware...