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Title: Mining increase the coin value or cause it to drop? Post by: gotliv on June 03, 2018, 06:15:19 PM Do you think mining help to increase the coin value or cause it to drop due to large sell orders?
Title: Re: Mining increase the coin value or cause it to drop? Post by: steve666 on June 03, 2018, 06:21:45 PM It only depends on what direction these coins are being disposed
Title: Re: Mining increase the coin value or cause it to drop? Post by: Vann on June 03, 2018, 06:36:06 PM Most miners will sell some of the coins they mine to cover their ongoing costs, so that generates some selling pressure on the coins. On the other hand if mining a coin requires specialized hardware or the difficulty is too high vs the potential reward, most people would rather buy the coin outright rather than accumulate by mining it, so that generates buy pressure.
Title: Re: Mining increase the coin value or cause it to drop? Post by: adaseb on June 03, 2018, 08:42:10 PM Basically there is no correlation.
Reason being is that people paid different amounts for their GPUs and/or ASICs. Some bought them new and others bought them used and others got them donated. Also the cost of electricity varies. For some its almost free and for others its like $0.40/kwh, so this is the reason why the difficulty of a coin can still increase while its value goes down. Basically look at the bitcoin difficulty in 2015. Title: Re: Mining increase the coin value or cause it to drop? Post by: Geraldo on June 03, 2018, 08:48:31 PM Typically, a miner will sell (all mined coin or may some of the coins as Vann said) or hold the coin for some period. So, that wouldn't affect increasing value of coins, Dropping coin value, may Yes (if miners sell coins in the large amount). Miners who bought some coins (that was a different story).
The right story behind mining was: Miners that doing mining will keep health and secure coins network. And also getting some profit ;) |