Title: Difficulty vs. Value on Mtgox Post by: bitdragon on January 26, 2011, 02:07:00 PM What is the relationship between difficulty to solve blocks vs value on MtGox?
Is this historic data available about the difficulty level and prices on MtGox and what does an extrapolation reveal? At what point does an increased value compensate for the change in difficulty? Thank you for any thoughts, Title: Re: Difficulty vs. Value on Mtgox Post by: ribuck on January 26, 2011, 02:12:18 PM In the long run, the difficulty is likely to be affected by changes in the value of BTC. A higher value will encourage more people to generate, leading to an increase in difficulty level. And vice-versa.
But in recent months, I think much of the difficulty increase is due to the ongoing movement from CPU to GPU mining, which is (in round figures) 50 times more efficient. If anyone wants to prepare a graph of difficulty vs. MtGox price, it would be interesting. Title: Re: Difficulty vs. Value on Mtgox Post by: comboy on January 26, 2011, 03:45:12 PM That's my first post here and I'm new so hello everyone :)
I've checked it lately because I was interested, data below is however for the bitcoinmarket.com, not mtgox. http://tesuji.pl/btc2.png Code: 2010-05-04 0.000233477876802472 The higher the value, the more profitable it is to mine. Title: Re: Difficulty vs. Value on Mtgox Post by: FreeMoney on January 27, 2011, 12:46:59 AM That chart seems odd. Difficulty was never less than 1 and value was never more than 1. How is value/difficulty ever above 1? I guess the units could be in value in cents. Is that it?
Title: Re: Difficulty vs. Value on Mtgox Post by: comboy on January 27, 2011, 02:50:55 AM That chart seems odd. Difficulty was never less than 1 and value was never more than 1. How is value/difficulty ever above 1? I guess the units could be in value in cents. Is that it? Damn you're good. Now everybody's gonna buy these GPUs ;) PS. Nice catch. Sorry for my mistake. (fixed in the previous post) Title: Re: Difficulty vs. Value on Mtgox Post by: FreeMoney on January 27, 2011, 05:26:28 AM That's great. Thanks for the chart.
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