Signals | Bitcointalksearch.org

phorensic

hero member

Activity: 630

Merit: 500

Yes, Qoh, you nailed it. When people get excited that the price is going up they start mining or resume mining. New people discovering bitcoin = fractionally more miners that don't want to buy or don't know any better. At first it looks like hash rate of the network doesn't mean anything related to price, but it's more intricately connected than that.

Qoheleth

legendary

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Spurn wild goose chases. Seek that which endures.

Quote from: Jonathan Ryan Owens on December 02, 2011, 04:30:47 PM

Why is an upward shift in mining power a signal of Bullishness? Someone? Anyone?

Presumably, each person mining seriously on GPUs (where power costs are a factor) is looking for some minimum "real dollar" value per hash to make running their rig (and paying those bills) worthwhile. So, presumably, miner beliefs that the price is going up = more miners firing up their rigs = upswing in total network hashpower, and miner beliefs that the price is going down = more miners mothballing their rigs = downswing in total network hashpower.

Of course there are other factors that go into this kind of math (for instance, the current difficulty, which just got reduced a couple days ago). But expected electricity return on BTC (i.e. expected exchange rate) is definitely one of them.

damnek

hero member

Activity: 614

Merit: 500

Quote from: evoorhees on December 02, 2011, 04:56:04 PM

This is the important chart...

http://blockchain.info/charts/estimated-transaction-volume

Does anyone have an idea what is causing the spikes at the end?

Dan The Man

hero member

Activity: 672

Merit: 500

A lot of Bitcoins. In my opinion, this could only have neutral or negative effects on the price depending on if the intention is to put these coins on the market or just relocate them.

evoorhees

legendary

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Democracy is the original 51% attack

This is the important chart...

http://blockchain.info/charts/estimated-transaction-volume

Jonathan Ryan Owens

donator

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a 1 - 2% difference in hashing power is meaningless. Further, it doesn't signal bullish sentiments at all, it only signals that there's more smaller miners either hoarding coins or mining coins. Either way, there's 7200 a day of which some % get sold to pay utility bills.

Why is an upward shift in mining power a signal of Bullishness? Someone? Anyone?

Eveofwar

sr. member

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Merit: 250