I feel the price of bitcoin has no or little effect from mining, since its based on a # of factors.
Like whales, and fraud, and other things that add in the price on the daily. Huge sell offs, like KNC moving bitcoin so its not just mining at all since its a small portion based on people views with only the mining difficulty is wrong.
Topic: relationship of bitcoin prices and mining price - page 4. (Read 3962 times)
Price totally gets affected of mining. There was one research made by Adam Hayes, i was listening on one of Bitcointalk podcast.
I just went to check and saw he posted all here: http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=2372041
I just went to check and saw he posted all here: http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=2372041
He is mistaken. Anybody can write a flawed paper.
There is no mechanism by which the cost of mining drives the price of bitcoin. Mostly people that believe that just confuse correlation with causation, and make bad assumptions.
-snip-
When block reward halve, we can expect big increase of price
When block reward halve, we can expect big increase of price
You can also expect some of miners just shut down their miners due to high electricity cost. At first halving , there was another expectation. ASICS race. Since there were more energy efficient miners came to the market , BTC price just went crazy due to this. However this time it will be a mistery. I still think there will be some increase at price but not too much.
But still, we have an opportunity about this halving by watching LTC first halving.
or you can expect the miners to remain the same and the price too, because the first will have a better technology that can sustain the price halving, because their electricity will halve too, so instead of having 80%(100-20 form electricity) they will have 40% (50-10)
I spoke with the CEO of BTCS, which has launched a mining farm down in the Carolinas (if I remember correctly). Based on the current hash rate and their price of electricity, they are still making a profit even with where the price of BTC is currently. And then there are chips that are coming out this summer that argue that their efficiency and hashing power will enable miners to remain profitable even if bitcoin were to drop underneath $100/BTC.
-snip-
When block reward halve, we can expect big increase of price
When block reward halve, we can expect big increase of price
You can also expect some of miners just shut down their miners due to high electricity cost. At first halving , there was another expectation. ASICS race. Since there were more energy efficient miners came to the market , BTC price just went crazy due to this. However this time it will be a mistery. I still think there will be some increase at price but not too much.
But still, we have an opportunity about this halving by watching LTC first halving.
its simple, higher mining cost > higher price.
When block reward halve, we can expect big increase of price
When block reward halve, we can expect big increase of price
Quite simple, yes, but the opposite of what you say.
its simple, higher mining cost > higher price.
When block reward halve, we can expect big increase of price
So can decreasing mining costs decrase bitcoin prices? other guys do not agree wirh thisWhen block reward halve, we can expect big increase of price
its simple, higher mining cost > higher price.
When block reward halve, we can expect big increase of price
So can decreasing mining costs decrase bitcoin prices? other guys do not agree wirh this When block reward halve, we can expect big increase of price
its simple, higher mining cost > higher price.
When block reward halve, we can expect big increase of price
When block reward halve, we can expect big increase of price
It is absolutely clear that mining cost follows price. Higher price -> more mining -> higher difficulty -> higher cost.
Currently, it looks like miners are investing to position themselves before an expected price hike.
Thanka, n fact I was thinking that bitcoin price is a function of mining cost which is opposit of what you are saying Currently, it looks like miners are investing to position themselves before an expected price hike.
Most of the people buying and selling bitcoins are not miners so there is no reason why mining cost would affect bitcoin price.
Eh.. no. Cost is a function of price.
It is absolutely clear that mining cost follows price. Higher price -> more mining -> higher difficulty -> higher cost.
Currently, it looks like miners are investing to position themselves before an expected price hike.
Thanka, n fact I was thinking that bitcoin price is a function of mining cost which is opposit of what you are saying Currently, it looks like miners are investing to position themselves before an expected price hike.
Most of the people buying and selling bitcoins are not miners so there is no reason why mining cost would affect bitcoin price.
There is no reason why miners would buy bitcoins.
actually there is, but only in the case the price fall too low, and their whole mining activity become unprofitable, the first thing they will try is to support buyers, to raise the confidence in the future price and starting a small pump that should bring the price to the profitable level, the second , well.... they will begin to sell their hwdware
It is absolutely clear that mining cost follows price. Higher price -> more mining -> higher difficulty -> higher cost.
Currently, it looks like miners are investing to position themselves before an expected price hike.
Thanka, n fact I was thinking that bitcoin price is a function of mining cost which is opposit of what you are saying Currently, it looks like miners are investing to position themselves before an expected price hike.
Most of the people buying and selling bitcoins are not miners so there is no reason why mining cost would affect bitcoin price.
There is no reason why miners would buy bitcoins.
Price totally gets affected of mining. There was one research made by Adam Hayes, i was listening on one of Bitcointalk podcast.
I just went to check and saw he posted all here: http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=2372041
Bitcoin mining is the process of earning bitcoin in exchange for running the verification to validate bitcoin transactions.
and bitcoin price now depends upon its usage..
we users of bitcoin will get only profit when more and more demands of bitcoin arises..vice versa with mining.
It is absolutely clear that mining cost follows price. Higher price -> more mining -> higher difficulty -> higher cost.
Currently, it looks like miners are investing to position themselves before an expected price hike.
Thanka, n fact I was thinking that bitcoin price is a function of mining cost which is opposit of what you are saying Currently, it looks like miners are investing to position themselves before an expected price hike.
Most of the people buying and selling bitcoins are not miners so there is no reason why mining cost would affect bitcoin price.
It is absolutely clear that mining cost follows price. Higher price -> more mining -> higher difficulty -> higher cost.
Currently, it looks like miners are investing to position themselves before an expected price hike.
Thanka, n fact I was thinking that bitcoin price is a function of mining cost which is opposit of what you are saying Currently, it looks like miners are investing to position themselves before an expected price hike.
Most of the people buying and selling bitcoins are not miners so there is no reason why mining cost would affect bitcoin price.
Yes it can be less too so how do some people predict its peice can be more than 1000$? It does not seem reasonable
The highest value of Bitcoin value rise upto 260$, According to Mark T. Williams, as of 2014, bitcoin has volatility seven times greater than gold, eight times greater than the S&P 500, and eighteen times greater than the U.S. dollar, the high volatility of a startup currency makes sense, because people are still experimenting with the currency to figure out how useful it is.
It is absolutely clear that mining cost follows price. Higher price -> more mining -> higher difficulty -> higher cost.
Currently, it looks like miners are investing to position themselves before an expected price hike.
Thanka, n fact I was thinking that bitcoin price is a function of mining cost which is opposit of what you are saying Currently, it looks like miners are investing to position themselves before an expected price hike.
It is absolutely clear that mining cost follows price. Higher price -> more mining -> higher difficulty -> higher cost.
Currently, it looks like miners are investing to position themselves before an expected price hike.
Currently, it looks like miners are investing to position themselves before an expected price hike.
Yes it can be less too so how do some people predict its peice can be more than 1000$? It does not seem reasonable
I think you mean it currently costs about 400 usd to "extract" (eg. mining?) a bitcoin. I think it is much less at the moment, especially in countries with cheap power.
Jump to: