what do miners know what speculators don't - page 2.

nuff

sr. member

Activity: 266

Merit: 250

Quote from: findftp on April 19, 2014, 11:10:26 AM

Quote from: Gopher09 on April 19, 2014, 09:23:26 AM

The reason the hash rate increases like that is because of moors law, which is constant and exponential
.

Precisely, and I don't understand the constant part.
Why would it be constant?
There need to be people/entities whom will buy and install miner hardware regardless of the current price.
So therefore my question.
Do the miners know something the rest don't know?
Why would they mine bitcoin if the price is decreasing?

Miners are a magnanimous lot that they don't mind paying for the expenses to make it possible for people who don't/can't/won't mine to be able to acquire Bitcoins for fiat. Miners are what keeps Bitcoin going, without miners, there'd be no Bitcoin. Respect the miners.

findftp

legendary

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Delusional crypto obsessionist

Quote from: Gopher09 on April 19, 2014, 09:23:26 AM

The reason the hash rate increases like that is because of moors law, which is constant and exponential
.

Precisely, and I don't understand the constant part.
Why would it be constant?
There need to be people/entities whom will buy and install miner hardware regardless of the current price.
So therefore my question.
Do the miners know something the rest don't know?
Why would they mine bitcoin if the price is decreasing?

Gopher09

newbie

Activity: 19

Merit: 0

Not sure I understand the question , but the price of bitcoin has never been linked to network hash rate.
The reason the hash rate increases like that is because of moors law, which is constant and exponential
. The reason Btc prices fluctuate so much is because there is more speculative trading back and fourth than actual use of Btc in the economy. Although if you look at an logarithmic curve of the price , the value has actually matched that kind of patten to a degree. You have to understand that the 1,200 price was a tremendous bubble , there was no economic reason to support that kind of price yet. Everyone gravitates towards this idea that the price of Btc should follow supply and demand logic based on its production , ie how difficult mining is ... But that is only half the equation , you have to have economic volume and velocity on the other side , people have to spend it for goods and services , and there has to be a compelling reason to demand they spend Btc as opposed to fiat for that good or device , we don't really have that yet.

findftp

legendary

Activity: 1022

Merit: 1006

Delusional crypto obsessionist

Why is the hashing power curve following a nice hockeystick curve?
If prices drop, wouldn't there be less incentive to mine them?

Topic: what do miners know what speculators don't - page 2. (Read 1863 times)