Bitcoin Forum

It has been confirmed that the power rate in China will drop by 2 cents(yuan) ? Could this trigger the bitcoin crash?

i don't think so. it would stimulate to get more mining hardware working on full power. which will result in a difficulty rise.

Who confirmed that the power rate in China will drop by 2 cents?

I don't think so, the miners can use the power more cheaper than the industrial and commercial electricity, this power rate decreasing will not change anything.

why it should? you know that the numbers of bitcoin mined is a fixed number? 2 cent lower won't change anything

the problem with bitcoin crash is more related  to the fact that there aren't enough buyers, nothing else

China miners seem less likely to hold bitcoin atm as it cant be used as much - that is probably more likely to hold the price down.

According to the following news article, the price for commercial enterprises will be lowered 0.018 Chinese Yuan (~0.003 USD) per kWh.
http://www.scmp.com/news/china/article/1761271/china-cuts-power-prices-and-taxes-help-firms-amid-slowdown

The Chinese miners use the power at price negotiated directly with power generator, which is much cheaper than commercial or industry rates.

Low buyers is one factor, the other factor is that if the sellers are more than the price gets further driven down.And since the chinese are more likely to dump, so a drop in price of electricity, will have them run their miners at full capacity, generating more coins there due to higher hashing, which in turn means they will dump more driving the price down.

No they won't hold, they sell to pay the power fee and credit loans, they're not bank, if they hold, then how they stay alive?

The imaginary line at 1500 CNY is a psychological border. I think today's dump started with that line being crossed. We're now bouncing off of a long-term support, which is scary!

this assuming that the other miners aren't dumping as well, because as i said above the bitcoin produced every day is a fixed number, so let's say that only 2400 coins are dumped every day(66%), and let's say that 50%(1200) of those come from china

if they produce more coins, it mean that someone else is producing less, again let's say they will produce 33% more, this result in 1600 coin from china and 800 from others

now if the one that is producing those 400 less coins(could be the sum of many small miners or anything else it doesn't matter) was dumping too every day, it won't change anything, instead of them dumping, now there are chinese that are doing it

I don't think so.  Price going down because people don't see bitcoin as a speculative tool anymore, pure and simple.

China doesn't even have the cheapest cost per btc from mining, so no

im agree with you, i think is time to bitcoin coming to dead

http://www.globaltimes.cn/content/915916.shtml

I think this is what OP is talking about... A reduction in power costs may actually benefit the Bitcoin prices with difficulty rising or it may further push out the home miners :(

I don't think there will be a crash but most likely it will put pressure on the bitcoin price and push it lower. This is because miners now can decide to reduce the price and competing against each other in the open market as their operating cost has also gone down. How far that goes to influence the price remains to be seen. Don't forget that although China is one of those countries where bulk of the mining operation are located, you haven't discounted and taken into fact that places like Iceland also has large concentration of miners.