Big bounce from the 200 day EMA, and then a longish period of "wait and see" (I said that as long as two weeks of sideways trading was expected, just as we had before the fast crash to $66).
Fiat in the order book increasing, coins decreasing. An important milestone will be the shipping of ASIC miners en mass. ATM they are just a few, and they still enjoy good profits. No need to dump all the coins on the market. That will change soon.
This is an interesting point I've been wondering about lately. I also believe they mentioned this on "Let's Talk Bitcoin" in the last week. What is going to happen with so many new mining rigs getting out there? The GPU miners will all off, almost there now.
I do wonder though, how many of these miners are just going to sit on their mined coins. The thing is, if many expect a downward movement in the price, then why not sell some while you can???
And what about all those coins already mined? Hmmmmm
Personally, I would probably sit on the coins, unless I was desperate for cash. Something about "owning" coins I've mined.
I'm a miner myself, and people in here doesn't not understand what a deep change in the game are ASICs. With GPUs, you could buy a $500 set-up and mine to hoard, as the investment was negligible and you could always sell your GPUs to gamers, "recouping your costs" was no big deal and no priority, it was a hobbyist occupation for 95% of the miners.
Now, the only purpose of those $2k, $4k, $7k ASIC rigs is to mine Bitcoin, and maaaany people didn't throw at those machines only "play money". Professional operations with the only purpose of generating PROFIT are being build up. Yes, many are still Bitcoin believers so they will hoard, but after they paid for their costs. And their aggregate costs are huge. BFL has millions of $ in preorders not shipped yet. KnC has millions of $ in preorders, there are millions of $ in Avalon chips, Bitfury machines and whatnot...
Now the very few ASIC miners (mostly Avalon miners, they are just a few hundred individuals) have enjoyed very healthy profits. They paid for their machines in a few days, with a few coins. But the profitability is declining VERY HARD, so more coins will have to be sold by the miners to recoup their hardware costs, which are denominated in FIAT.
Many seem to hide their heads in the ground, but the hard fact is that 10s of millions of $ have been invested in machines which only use is to mine BTC, and those 10s of millions of $ in mining rigs are a cost that miners are willing to recoup ASAP.
Some in here say "well, the BTC/USD will be higher, and miners will have to sell less coins to recover their costs". That's a logical fallacy, because the higher is going to be the BTC/USD, the more people will invest in mining hardware, making the amount of generated coins more distributed and in fewer quantity per individual miner/operation, thus the 3,600BTC generated per day will be probably dumped almost immediately, at least during the next few months, until the mining gold-rush is over and stabilizes, and the miners that are entering the ASIC game pay for their investment.
Thanks for the info, helps me to postulate here a bit more.
Well, it is becoming a much bigger gamble for miners. Their rigs will have no long term resale value as long as we have a very high or increasing difficulty. (Not to mention that there is talk of integrating Scrypt or a combination in the future, but that is just an unknown at this point.) I was close to ordering a Bitfury Rig (25Gh) for August delivery but I waited a few hours too long. 25Gh in August would have been good, but 25Gh for the same price in October would probably be bad and also very very risky. I still have a 7Gh on order from BFL but don't expect it till October, how do you think I feel? LOL I knew this when I ordered it though and honestly, a big part of the order is I think it will be worth more in 10 years than now. I do hope they allow upgrades (more) as the shipping date gets closer as the difficulty is going up and they will just have a lot of cancelled orders to deal with.
I do think quite a few of the miners have deep pockets as the cost of these rigs is getting higher and higher, so perhaps for some of them they will just hold ("hoard" is not appropriate here imo.)
3600 Coins are mined a day (25 per block, block=10 minutes=150hrX24=3600 per day) and that doesn't sound like too many coins (as long as we are growing). We have to look at the daily volume and find a reasonable percentage range that these coins will make up of it. So, let's say an average daily volume of 25,000, and into that we have to factor in 3600. Now, how many of those 3600 coins are sold daily into 25,000? If all are sold (which is not the case) we are talking only 14% and I think the market can absorb that. But, how much of that volume is day trading? Most of it? That changes things. What the market can't absorb is dumping by existing holders (from mining). Anyway, what is the true effect of potential sales here?...