Topic: Why is the price not going up with hashrate? (Read 713 times)
@pandher - "Without utmost stupidity, the world shall cease" < LOL
More miners. More sellers. Less buyers. Less reasons to buy.
demand drives price
because there are something wrong with the chinese market.
Nope network difficulty and price have nothing to do with each other. Price is based on how many people are buying, and how many are selling at the current time. And how badly either side want coins or wants to dump them. With all the $10,000+ mining machines out there right now, people are trying to get them paid off, so in turn they will sell their coins as soon as they get them, this will drive the price down.
Another huge factor which is related is watching the world news. Everytime bad news for a coin comes up, the price will fall because people will be dumping their coins. If you watch, everytime China announces they are banning BTC, the price plummets. Everytime they say they will accept it, the price jumps. Same with every other coins. When Sharmbeck (A not even open operating company collapsed under itself) fell, it took the price of WDC with it.
Network difficulty/hash rate only effects the amount a miner can mine with their equipment. It has nothing to do with the investors, which are the true reason a coin has value.
Another huge factor which is related is watching the world news. Everytime bad news for a coin comes up, the price will fall because people will be dumping their coins. If you watch, everytime China announces they are banning BTC, the price plummets. Everytime they say they will accept it, the price jumps. Same with every other coins. When Sharmbeck (A not even open operating company collapsed under itself) fell, it took the price of WDC with it.
Network difficulty/hash rate only effects the amount a miner can mine with their equipment. It has nothing to do with the investors, which are the true reason a coin has value.
ASICS = More Coins Mined = More Dumping = Price Drop
False, ASICs don't change the number of coins to be mined each hour/day/month, this value is fixed by algorithm.Price is determined by supply and demand, diff or hash rate has little effect actually. Less demand = less buyers = price decrease.
So since the suppy is the same and the difficulty will go up should that not equal a price increase? or it that dependent on hording and buying?
ASICS = More Coins Mined = More Dumping = Price Drop
False, ASICs don't change the number of coins to be mined each hour/day/month, this value is fixed by algorithm.Price is determined by supply and demand, diff or hash rate has little effect actually. Less demand = less buyers = price decrease.
I noticed all the bigger Asics coming online recently, and also all coin values seemed to drop. Im curious as to how long it will take to correct itself...you know, Harder to mine therefor price should go up. Anyone care to shed some light on this?
it's less costly to mine with new miners (something that is easier to get usually costs less)
it will never correct itself - altcoin prices will continue to decrease.
on the flip side there are more miners entering the market and along with them comes their financial resources which will help coin prices since there will be more competition for the available coins.
ASICS = More Coins Mined = More Dumping = Price Drop
I'll add to what he said. Same amount of coins mined. Everyone's fractions earned gets smaller as network hashrate increases.
The real reason prices are not increasing? All the capital in crypto currency is dispersed among the 489 currencies that now exist. Many hope to get rich on a P&D but the smart people store there money in the safe currencies that have a future.
Give it time
ASICS = More Coins Mined = More Dumping = Price Drop
I noticed all the bigger Asics coming online recently, and also all coin values seemed to drop. Im curious as to how long it will take to correct itself...you know, Harder to mine therefor price should go up. Anyone care to shed some light on this?
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