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Title: Why does LTC only worth 7 mBTC? Post by: bitcool on November 29, 2012, 07:01:37 PM Imagine there's a remote island with the majority of population are either directly involved in or know about mining. A lot of people have equipment for gold-mining, a much smaller group of people mine silver.
Now for some reason many gold miners joined silver mining and double the number of silver miners; but no matter how hard they try, the total silver mine output stays the same. What do you think? should the silver price rise? or fall? LTC hash rate and difficulty are doubling comparing to pre btc-halving days, should the price double from 0.005 btc to 0.01? Title: Re: Why does LTC only worth 7 mBTC? Post by: Revalin on November 29, 2012, 07:12:24 PM It's a matter of supply and demand. You're only considering the supply side.
Title: Re: Why does LTC only worth 7 mBTC? Post by: Kupsi on November 29, 2012, 07:47:17 PM Imagine there's a remote island with the majority of population are either directly involved in or know about mining. A lot of people have equipment for gold-mining, a much smaller group of people mine silver. Now for some reason many gold miners joined silver mining and double the number of silver miners; but no matter how hard they try, the total silver mine output stays the same. What do you think? should the silver price rise? or fall? LTC hash rate and difficulty are doubling comparing to pre btc-halving days, should the price double from 0.005 btc to 0.01? So... The demand is constant. The cost of mining silver goes up. More miners need to sell silver to break even. I guess harder competition will push the price down. Title: Re: Why does LTC only worth 7 mBTC? Post by: bitcool on November 29, 2012, 08:21:56 PM The demand is constant. The cost of mining silver goes up. More miners need to sell silver to break even. 1) The demand is constant. (assuming this is true) 2) The cost of mining silver goes up. (cost per coin) ===> More miners need to sell silver to break even. If mining makes money, why sell to "break even"? If mining loses money, the more you sell, the more you lose, right? Title: Re: Why does LTC only worth 7 mBTC? Post by: bitcool on November 29, 2012, 08:33:18 PM It's a matter of supply and demand. You're only considering the supply side. It is a supply and demand, and no one cares about litecoins. Also I can mine it with my CPU so why would I give up my harder to get bitcoins, for the easy to create litecoins. So yeah litecoins aren't going up any time soon. but... it has already gone up 30+% for the last 2 days. I was just wondering why it wasn't 100% ;) Title: Re: Why does LTC only worth 7 mBTC? Post by: Kupsi on November 29, 2012, 08:34:31 PM The demand is constant. The cost of mining silver goes up. More miners need to sell silver to break even. 1) The demand is constant. (assuming this is true) 2) The cost of mining silver goes up. (cost per coin) ===> More miners need to sell silver to break even. If mining makes money, why sell to "break even"? If mining loses money, the more you sell, the more you lose, right? But when more people start to mine, more silver must be sold to cover the expenses. The harder competition to sell silver pushes the price down. But I could be wrong :) Title: Re: Why does LTC only worth 7 mBTC? Post by: bitcool on November 29, 2012, 09:08:04 PM Cause no one cares about litecoins, 30% is able cause GPu miners are making the switch, so people are becoming bullish on them, but overall, you will not see anything close to 100% in the coming days. Man, you need to have serious clarification on what your "cares" means. Those GPU miners care enough to make the switch, people care to become bullish on LTC, I care to speculate how much it will rise, and you care to reply in this subforum and this thread, yet you still declare "no one cares about litecoins". Sounds pure rhetoric. Title: Re: Why does LTC only worth 7 mBTC? Post by: markm on November 29, 2012, 09:16:36 PM People are maybe still mining stuff, whatever they mine, for instant sale maybe instead of as a way of picking up dirt cheap coins to save up for a time when inflation (creation of new coins) is not so rampant.
Also possibly a lot of people buying are buying up dirt cheap coins, thus just not bothering to buy until they get firesale prices, since they know so many miners are going for fast sales instead of long term stockpiling of coins toward a year when the rampant inflation of these early years has cooled down some. (People make a big deal about bitcoin mining halving but it is only the first halving, almost half of all bitcoins have not been mined yet.) Also maybe not all the ASIC makers and hackers and theives have converted all their gains into fiat yet or maybe so many hacks had made people convinced that even if they did have some coins they would just lose them to hackers or something, since bitcoin is still insanely low too. Until it goes back over $30 per coin you should maybe be worrying why bitcoin is so cheap not why altcoins are; maybe if bitcoin got back on its growth track it got derailed from back in 2011 alt coins might also recover some. -MarkM- Title: Re: Why does LTC only worth 7 mBTC? Post by: gusti on November 29, 2012, 09:48:57 PM Cause no one cares about litecoins, 30% is able cause GPu miners are making the switch, so people are becoming bullish on them, but overall, you will not see anything close to 100% in the coming days. Man, you need to have serious clarification on what your "cares" means. Those GPU miners care enough to make the switch, people care to become bullish on LTC, I care to speculate how much it will rise, and you care to reply in this subforum and this thread, yet you still declare "no one cares about litecoins". Sounds pure rhetoric. Don't forget the speculation component of the equation, miners keep part of the LTC, expecting a rise in the exchange rate in the near future. Title: Re: Why does LTC only worth 7 mBTC? Post by: MooC Tals on November 29, 2012, 09:55:37 PM Imagine there's a remote island with the majority of population are either directly involved in or know about mining. A lot of people have equipment for gold-mining, a much smaller group of people mine silver. Now for some reason many gold miners joined silver mining and double the number of silver miners; but no matter how hard they try, the total silver mine output stays the same. What do you think? should the silver price rise? or fall? LTC hash rate and difficulty are doubling comparing to pre btc-halving days, should the price double from 0.005 btc to 0.01? If everyone holds on to their LTC for a better price the price will rise and as long as everyone is willing to give their coins for that price it will only go down. If everyone lost the ability to use credit the stores will have less people with money and be forced to sell lower prices to get rid of their products. Also if there are miners still paying off their equipment they will be more willing to sell their coins to pay their debts. Many factors to consider here. Title: Re: Why does LTC only worth 7 mBTC? Post by: Prattler on November 29, 2012, 10:10:23 PM I think a better question would be:
Why is someone paying 7 mBTC for 1 LTC? Title: Re: Why does LTC only worth 7 mBTC? Post by: smoothie on November 30, 2012, 09:46:39 AM https://bitcointalk.org/index.php?topic=128524.0
Title: Re: Why does LTC only worth 7 mBTC? Post by: AndrewK on November 30, 2012, 12:25:46 PM As more people start mining litecoins.... More people will be using litecoins... Demand will go up along with supply... The ratio of supply growth to demand growth is what matters.
Are people hoarding? - Good (atleast on the short term) for price Are people spending and recirculating the currency? - Good for price Are people converting to dollars or bitcoins everything they mine? - Bad for price. Title: Re: Why does LTC only worth 7 mBTC? Post by: bitcool on November 30, 2012, 02:36:15 PM https://bitcointalk.org/index.php?topic=128524.0 haven't done your reloading yet? hurry up man ;) |