I hope that the NSA creates a mining pool that pays similar to BTC if it fails. Be a shame to let all that hashing power go to waste...
America... fuck yeah! comin' to save the muthafuckin' day yeah!
Topic: Why the price didnt go up ? (Read 5327 times)
but If bitcoin fails in 2-3months, its better to sell the card. After bitcoin failure, there will be like 10000000000 gpus on ebay
Don't worry, there'll be a Bitcoin replacement where those GPU's can be used.
And otherwise you could connect them together and create your own virtual reality in which you are rich. Hey, isn't that exactly...
but If bitcoin fails in 2-3months, its better to sell the card. After bitcoin failure, there will be like 10000000000 gpus on ebay
but, having 4$ daily is worth it ? You probbably spend like 1$ on electricity. 3$ daily makes a 5870 about 3 months to earn for herself ; /
It is if you already bought the card.
but, having 4$ daily is worth it ? You probbably spend like 1$ on electricity. 3$ daily makes a 5870 about 3 months to earn for herself ; /
shit won't hit the fan until blocks only yield 25btc.
the sad part is when difficulty will increase next time. If the price stay at this point, one 5870 will just cover electricity costs... It will be like 0,2BTC daily with 20$ = 4$ a day. I think that many small miners will give up.
Moreso than difficulty or miners is perception... It's not even been a week since the price went from like $14 to $40
Just a clarification, the all time high on Mt. Gox exchange was just under $32, so about 20 % below your mention.
Also, for the record -- the forum user bitcoinminer has no association with @BitcoinMiner twitter account or http://www.BitcoinMiner.com
OK?? lol yes, that totally changes this... wild swings from $14 to $32 to $10 to $20 in a 24 hour period had nothing to do with perception of traders...
I dont claim to have a twitter account OR a website in my sig, or in any of my posts, but thanks for clearing up the confusion you helped create...
Of course he can! He even used a percentage that doesn't end in 5 or 0!! What more do you need??
I think he just missed zero key at the end there ... 
If you do the hard math to determine the actual value of btc based on capital investments, human resources, overhead etc. , youll see that BTC already has a premium built in for the increased difficulty. The invisible hand knows everything!
In My estimation BTC is already overvalued by around 38%
In My estimation BTC is already overvalued by around 38%
And how do you know what the capital investments, human resource and overhead are? You don't, and you can't. No one can.
Of course he can! He even used a percentage that doesn't end in 5 or 0!! What more do you need??
Bob is a miner. He now has 100.000 bitcoins and invested a lot of money in a mining rig. Difficulty increase and he realizes that mining is not profitable anymore for him. He decides to retire and to take his money back. He sell 50.000 bitcoins that very same day.
Price fall.
Funny, I just demonstrated that the difficulty increase might drive the price down as well.
He cannot stop mining and sell (decrease the price) until after he has started mining and bought (increase the price).
If economics were this easy we would all be rich..
If you do the hard math to determine the actual value of btc based on capital investments, human resources, overhead etc. , youll see that BTC already has a premium built in for the increased difficulty. The invisible hand knows everything!
In My estimation BTC is already overvalued by around 38%
In My estimation BTC is already overvalued by around 38%
And how do you know what the capital investments, human resource and overhead are? You don't, and you can't. No one can.
If you do the hard math to determine the actual value of btc based on capital investments, human resources, overhead etc. , youll see that BTC already has a premium built in for the increased difficulty. The invisible hand knows everything!
In My estimation BTC is already overvalued by around 38%
In My estimation BTC is already overvalued by around 38%
Moreso than difficulty or miners is perception... It's not even been a week since the price went from like $14 to $40
Just a clarification, the all time high on Mt. Gox exchange was just under $32, so about 20 % below your mention.
Also, for the record -- the forum user bitcoinminer has no association with @BitcoinMiner twitter account or http://www.BitcoinMiner.com
Even a price increase might not attract new miners if for example suitable graphics cards are sold out. Another break in the trend could be once people start running into energy limits, or the price goes up to such an extent that FPGA mining becomes viable. Same for ASIC mining at some point.
I think the key point that everyone is missing is that this difficulty increase didn't actually affect the amount of bitcoins coming into the market. Somewhere today we hit 12 terahash and thus the supply of bitcoin hasn't decreased.
The supply of new bitcoins doesn't change (much), that's the major point of the difficulty retargeting. The daily new supply of bitcoins is fairly constant. Price didn't go up because price doesn't follow difficulty. Corrolation isn't causation, children. You have to look at which metric leads the other. Price changes consistantly lead difficulty changes, because a spike in the exchange price attracts new miniers. Why is this concept difficult to understand?
miniers - noun - like a regular miner, only smaller
I saw this and at first was like, "Wha..?" and then it hit me, and I bust out laughing.
I think the key point that everyone is missing is that this difficulty increase didn't actually affect the amount of bitcoins coming into the market. Somewhere today we hit 12 terahash and thus the supply of bitcoin hasn't decreased.
The supply of new bitcoins doesn't change (much), that's the major point of the difficulty retargeting. The daily new supply of bitcoins is fairly constant. Price didn't go up because price doesn't follow difficulty. Corrolation isn't causation, children. You have to look at which metric leads the other. Price changes consistantly lead difficulty changes, because a spike in the exchange price attracts new miniers. Why is this concept difficult to understand?
miniers - noun - like a regular miner, only smaller
What's strange to me, is with this most recent difficulty increase, maybe my pool is lucky, but I'm consistently getting about 30% more BTC per day!
I would say that if you get a statistically significant batch of new miners, say 10% in a short time period, that would drive the price up, but again, separate from difficulty.
Moreso than difficulty or miners is perception... It's not even been a week since the price went from like $14 to $40 and back down to $10 in 24 hours. Looking at the market depth, I see a lot of people looking to sell, not a lot looking to buy, but differently from usual, the sellers are just holding on to their BTC rather than lowering their selling price. Seems a lot of people may be examining last weeks carnage and "waiting it out" to see what happens.
I include myself in that group - BTC is extra income for me, rather than my sole source of income, so I don't have that same "need" to sell.
I think the key point that everyone is missing is that this difficulty increase didn't actually affect the amount of bitcoins coming into the market. Somewhere today we hit 12 terahash and thus the supply of bitcoin hasn't decreased.
The supply of new bitcoins doesn't change (much), that's the major point of the difficulty retargeting. The daily new supply of bitcoins is fairly constant. Price didn't go up because price doesn't follow difficulty. Corrolation isn't causation, children. You have to look at which metric leads the other. Price changes consistantly lead difficulty changes, because a spike in the exchange price attracts new miniers. Why is this concept difficult to understand?
Bob is a miner. He now has 100.000 bitcoins and invested a lot of money in a mining rig. Difficulty increase and he realizes that mining is not profitable anymore for him. He decides to retire and to take his money back. He sell 50.000 bitcoins that very same day.
Price fall.
Funny, I just demonstrated that the difficulty increase might drive the price down as well.
He cannot stop mining and sell (decrease the price) until after he has started mining and bought (increase the price).
I think the key point that everyone is missing is that this difficulty increase didn't actually affect the amount of bitcoins coming into the market. Somewhere today we hit 12 terahash and thus the supply of bitcoin hasn't decreased. In order for the price to go up the supply of bitcoin will need to go down by quite a bit. Assuming the people that hoard will still hoard, and only a limited number of people are selling, the decrease in bit coins can have a pretty big affect on bit coin prices.
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