The latest self-driven BTC demand? | Bitcointalksearch.org

johnyj

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Beyond Imagination

Quote from: Peter Lambert on March 21, 2013, 04:35:51 PM

Goes on until the people selling the ASICs need to pay their bills, and sell all those bitcoins for the USD or EUR or CHY or whatever their suppliers and taxmen demand.

Makes some sense!

I suppose that most of the ASIC miners today are holding their coins (they are the true supporters of bitcoin and foresee a price of at least $1K), this is enough to create a shortage of available bitcoin at exchanges, and ASIC companies are also bitcoin enthusiast, they won't sell all of their earned coins to pay back their bill either, so generally the spending is always much less than income in bitcoin's perspective

Peter Lambert

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Quote from: johnyj on March 21, 2013, 12:57:14 PM

Avalon team ask for 88 BTC for their mining rig, and they only accept BTC payment. In order to get those BTC, people who do not have so much BTC will have to buy from exchage, and this pushed the exchange price up, and Avalon team will receive at least 88000 BTC in sale

This proved my theory before: A business who only accept BTC payment will become the strong support for BTC exchange price, if their products are highly demanded

But this case is a little bit special, people buying the avalon machine are hoping for a quick ROI, and the return is BTC. Asic mining equipment manufacturing maybe is the only business in BTC economy that can generate such a high return that attract so many investors

Then here is the question: If those ASIC mining companies are continuously raise the price of their mining rig for each new generation products, and they only accept BTC, then the BTC price will continously rise due to shrinking supply of BTC, and the rising price of BTC will create higher and higher demand for ASIC mining equipment.....all self sustained loop, is this long term sustainable? For how long?

Goes on until the people selling the ASICs need to pay their bills, and sell all those bitcoins for the USD or EUR or CHY or whatever their suppliers and taxmen demand.

DataPlumber

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Quote from: Vince Torres on March 21, 2013, 03:27:07 PM

Quote from: johnyj on March 21, 2013, 12:57:14 PM

Avalon team ask for 88 BTC for their mining rig, and they only accept BTC payment. In order to get those BTC, people who do not have so much BTC will have to buy from exchage, and this pushed the exchange price up, and Avalon team will receive at least 88000 BTC in sale

This proved my theory before: A business who only accept BTC payment will become the strong support for BTC exchange price, if their products are highly demanded

But this case is a little bit special, people buying the avalon machine are hoping for a quick ROI, and the return is BTC. Asic mining equipment manufacturing maybe is the only business in BTC economy that can generate such a high return that attract so many investors

Then here is the question: If those ASIC mining companies are continuously raise the price of their mining rig for each new generation products, and they only accept BTC, then the BTC price will continously rise due to shrinking supply of BTC, and the rising price of BTC will create higher and higher demand for ASIC mining equipment.....all self sustained loop, is this long term sustainable? For how long?

Can someone translate this?

From a very old PSA:

I use cocaine
so I can work harder
so I can make more money
so I can buy more cocaine
so i can work harder...

(I think he's saying, in essence, that the BTC price is not sustainable, if mining gear is the only real commerce involving Bitcoin.)

MaGNeT

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hazek

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Quote from: johnyj on March 21, 2013, 12:57:14 PM

Then here is the question: If those ASIC mining companies are continuously raise the price of their mining rig for each new generation products, and they only accept BTC, then the BTC price will continously rise due to shrinking supply of BTC, and the rising price of BTC will create higher and higher demand for ASIC mining equipment.....all self sustained loop, is this long term sustainable? For how long?

Ehkm.. A rising dollar price per ASIC != a rising bitcoin price per asic. It's entirely possible that you pay the same amount of BTC both when the price is $1,200 or $15,000. So I think your theory that this would cause an ever shorter supply of BTC is flawed.

Vince Torres

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Quote from: johnyj on March 21, 2013, 12:57:14 PM

Avalon team ask for 88 BTC for their mining rig, and they only accept BTC payment. In order to get those BTC, people who do not have so much BTC will have to buy from exchage, and this pushed the exchange price up, and Avalon team will receive at least 88000 BTC in sale

This proved my theory before: A business who only accept BTC payment will become the strong support for BTC exchange price, if their products are highly demanded

But this case is a little bit special, people buying the avalon machine are hoping for a quick ROI, and the return is BTC. Asic mining equipment manufacturing maybe is the only business in BTC economy that can generate such a high return that attract so many investors

Then here is the question: If those ASIC mining companies are continuously raise the price of their mining rig for each new generation products, and they only accept BTC, then the BTC price will continously rise due to shrinking supply of BTC, and the rising price of BTC will create higher and higher demand for ASIC mining equipment.....all self sustained loop, is this long term sustainable? For how long?

Can someone translate this?

GideonGono

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I think it's sustainable so long as there is other, productive activity going on in the bitcoin market that is also growing.

johnyj

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Activity: 1988

Merit: 1012

Beyond Imagination

Avalon team ask for 88 BTC for their mining rig, and they only accept BTC payment. In order to get those BTC, people who do not have so much BTC will have to buy from exchage, and this pushed the exchange price up, and Avalon team will receive at least 88000 BTC in sale

This proved my theory before: A business who only accept BTC payment will become the strong support for BTC exchange price, if their products are highly demanded

But this case is a little bit special, people buying the avalon machine are hoping for a quick ROI, and the return is BTC. Asic mining equipment manufacturing maybe is the only business in BTC economy that can generate such a high return that attract so many investors

Then here is the question: If those ASIC mining companies are continuously raise the price of their mining rig for each new generation products, and they only accept BTC, then the BTC price will continously rise due to shrinking supply of BTC, and the rising price of BTC will create higher and higher demand for ASIC mining equipment.....all self sustained loop, is this long term sustainable? For how long?

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