What happens if miners stop mining? Say a big crash in the price?

fattypig

full member

Activity: 224

Merit: 100

Quote from: Birdy on October 23, 2013, 08:15:46 AM

Quote from: ?? on ??

The hashrate and difficulty have nothing to do with the price.

That's not true, mining for Bitcoins is like another exchange where arbitraging is quite difficult and risky.
E.g. if difficulty is very low, quite a few people will buy mining equipment instead of buying Bitcoins.

It does have an effect on the price, the effect is difficult to estimate though.

I would buy ASIC if the difficulty is low or not increasing very fast. Thus price would drop cause I could have bought BTC instead

Birdy

sr. member

Activity: 364

Merit: 250

Quote from: ?? on ??

The hashrate and difficulty have nothing to do with the price.

That's not true, mining for Bitcoins is like another exchange where arbitraging is quite difficult and risky.
E.g. if difficulty is very low, quite a few people will buy mining equipment instead of buying Bitcoins.

It does have an effect on the price, the effect is difficult to estimate though.

Pokerfan

full member

Activity: 130

Merit: 100

Difficulty goes down, network finds a new equilibrium. More importantly, miners will not stop mining, because electricity costs are only a small part of their incomes now.

Birdy

sr. member

Activity: 364

Merit: 250

Difficulty goes back down.

manuel

member

Activity: 70

Merit: 10

Does the difficulty go back down? Or is it that every time it goes up that's the new floor as far as difficulty?

Topic: What happens if miners stop mining? Say a big crash in the price? (Read 1015 times)