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Bitcoin => Bitcoin Discussion => Topic started by: bitpump on October 13, 2014, 01:05:31 PM



Title: Miners did lower hashrate when 1 Bitcoin < $300
Post by: bitpump on October 13, 2014, 01:05:31 PM
Miners did lower hashrate when 1 Bitcoin < $300, see chart

Apparantly, miners do adjust operational expense depending on Bitcoin commercial price.

https://i.imgur.com/TNpKqIR.png


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: TrailingComet on October 13, 2014, 01:12:19 PM
It's logical that they do so when prices fall steeply but surprisingly appears to have rarely happened so far. Would be curious to know if there have been other stretches when the hash rate dropped.


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: btckold24 on October 13, 2014, 01:44:36 PM
I know personally I decided to sell my 2x s1's when btc dropped - why keep mining when I'm spending 2x what im making in just energy. It may be good if btc sits around 300 so that the difficulty stops climbing so dam fast.


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: jonald_fyookball on October 13, 2014, 05:05:20 PM
Well that's exactly what's supposed to happen, isn't it?

Everytime a newbie says something like
"Bitcoin is doomed if the price drops too much",
people are quick to explain the hashrate would
drop out of competitiveness to find a new
equalibrium.

Well, if that just happened, then it is proof
the theory is correct.


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: Brangdon on October 13, 2014, 05:22:47 PM
Well that's exactly what's supposed to happen, isn't it?

Everytime a newbie says something like
"Bitcoin is doomed if the price drops too much",
people are quick to explain the hashrate would
drop out of competitiveness to find a new
equalibrium.

Well, if that just happened, then it is proof
the theory is correct.
The lowering of the hashrate is the problem. The lower the hashrate, the cheaper it is to attack Bitcoin.


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: jonald_fyookball on October 13, 2014, 05:26:11 PM
Well that's exactly what's supposed to happen, isn't it?

Everytime a newbie says something like
"Bitcoin is doomed if the price drops too much",
people are quick to explain the hashrate would
drop out of competitiveness to find a new
equalibrium.

Well, if that just happened, then it is proof
the theory is correct.
The lowering of the hashrate is the problem. The lower the hashrate, the cheaper it is to attack Bitcoin.

Correct me if I'm wrong, it will only decrease linearly, not exponentially (unless of course price does the same).


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: Beliathon on October 13, 2014, 05:40:06 PM
Well that's exactly what's supposed to happen, isn't it?

Everytime a newbie says something like
"Bitcoin is doomed if the price drops too much",
people are quick to explain the hashrate would
drop out of competitiveness to find a new
equalibrium.

Well, if that just happened, then it is proof
the theory is correct.
The lowering of the hashrate is the problem. The lower the hashrate, the cheaper it is to attack Bitcoin.

Correct me if I'm wrong, it will only decrease linearly, not exponentially (unless of course price does the same).
Correct. To successfully attack bitcoin the hashrate would need to go back down to 2010 levels. Not going to happen, ever.


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: Skoupi on October 13, 2014, 05:50:11 PM
Hashrate went up even if for very little. And as it seems it will go up again.
What you are seeing in those charts is variance and not chinese people plugging and unplugging their equipment in real time  ::)


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: iwillwin on October 13, 2014, 06:47:50 PM
Well that is how the market works out brother ! There are some logical explanations and some illogical actions that just get you the result !!  :)


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: Rocky2 on October 13, 2014, 06:59:41 PM
may be the profit was low with their miners.


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: pawel7777 on October 13, 2014, 08:24:52 PM
That makes total sense, when mining costs exceed your income it's better to shut down your miners.
Strangely miners didn't seem to react to price swings before. Hashrate and diff was constantly growing, while price was going up and down.

Although it might have just been a case of power failure in some big mining farm  :)


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: Unbelive on October 13, 2014, 08:36:01 PM
Well that's exactly what's supposed to happen, isn't it?

Everytime a newbie says something like
"Bitcoin is doomed if the price drops too much",
people are quick to explain the hashrate would
drop out of competitiveness to find a new
equalibrium.

Well, if that just happened, then it is proof
the theory is correct.
The lowering of the hashrate is the problem. The lower the hashrate, the cheaper it is to attack Bitcoin.

But lower is the price of Bitcoin, less is worth getting attacked.


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: pawel7777 on October 13, 2014, 08:46:59 PM

But lower is the price of Bitcoin, less is worth getting attacked.

Imagine you're the powerful miner interested only in profit. Suddenly the BTC price drops significantly. You switched off your miner to avoid generating losses. So did the other 'professional' miners.

Now, if you have enough power, you can just switch it back on and attempt a massive double-spend. Doesn't matter if the bitcoin is only $100 if you could double spend thousands.

Threat is real and possible. Luckily not very likely. Lower the hash rate = lower difficulty, so it becomes more profitable again, therefore miners would be switching back on again.



Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: 1Referee on October 13, 2014, 08:50:34 PM
Why are people so surprised, this is very normal as people will temporarily turn off their hardware.

It will go up again for sure, that's how it works  :) Miners would love to see the difficulty drop more often.


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: tzortz on October 13, 2014, 10:44:28 PM
It was quite normal, as expected.


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: lihuajkl on October 14, 2014, 03:51:53 AM
Why are people so surprised, this is very normal as people will temporarily turn off their hardware.

It will go up again for sure, that's how it works  :) Miners would love to see the difficulty drop more often.
If the big mining farms mines enough bitcoin to cover it cost, they can continue to keep on the hardware.  They know bitcoin price is volatile, the price will bounce back even climb to several times in the future. They can keep the mined bitcoin and convert to cash in the future. 


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: franky1 on October 14, 2014, 04:55:44 AM
OP must be drunk. the days leading upto the under $299 price, i see a hash rise..

look at the chart again.. look at the date 25th september.

the price starts a constant down motion.. but the hasrate starting at 225peta, is in a constant up motion right the way over 300peta.

it is only then that the small shrimp that are instantly cashing out (non bitcoin investors) stop hashing because they are not getting enough fiat to pay their electric, so they stop mining, and as such stop cashing out. which is where we see the 20%-25% drop in hash power.


to me the big whales, mining farms and investors carry on, but there is a small quarter of the mining community that are not smart and are cashing out as soon as they can.

this 25% of the mining community are not bitcoin investors, but they are most certainly electric company investors as the only thing they have left in their hands is a "paid in full" electric bill.. but no fiat, no bitcoins.

im kind of glad they gave up as it gives more of a slice of the pie to true bitcoin miners/investors, whom by holding ot and not cashing out show their true belief in bitcoin for its long term prospective.

if any one thinks that mining should be used to feed your FIAT lives of this week, and not enrich your future lives.. you wont last long in the mining world


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: devphp on October 14, 2014, 06:43:06 AM
Correct. To successfully attack bitcoin the hashrate would need to go back down to 2010 levels. Not going to happen, ever.

Huh? Where did you pull that number/year from? Care to share your calculations?


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: deal on October 14, 2014, 06:58:30 AM
Some mining pools have shut down since btc price decrease to $450


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: solex on October 14, 2014, 07:16:15 AM
Coincidence that the hashrate dropped when marshals raided BFL, so perhaps their customer rig "testing" mining farm went offline?


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: FattyMcButterpants on October 15, 2014, 05:01:24 AM
Coincidence that the hashrate dropped when marshals raided BFL, so perhaps their customer rig "testing" mining farm went offline?
This is very well possible. The FTC however alleges that BFL "only" tested customer miners for two days prior to shipping so based on this the BFL farm should not have been that large. (I do suspect that the actual testing period could be accurately measured in months).

The miners do not actually lower the difficulty, they can only take mining capacity offline which will cause it to take longer for blocks to be found which will generally cause the difficulty to increase (assuming the lower hashrate is low enough to it take more then 2 weeks to find 2016 blocks)


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: UpTo0.99 on October 15, 2014, 05:12:08 AM
Why are people so surprised, this is very normal as people will temporarily turn off their hardware.

It will go up again for sure, that's how it works  :) Miners would love to see the difficulty drop more often.
The difficulty will likely track the median price of electricity and the price of bitcoin, at least over the long term (and when the difficulty gets to a high enough of a rate)


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: faceplantz on October 16, 2014, 05:12:12 AM
Some mining pools have shut down since btc price decrease to $450

So some mining pools are closing right? Is there new mining pools too?


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: pawel7777 on October 16, 2014, 10:36:40 AM
Some mining pools have shut down since btc price decrease to $450

So some mining pools are closing right? Is there new mining pools too?

Cryptsy is about to launch Mintsy, not sure whether they'll do it as a new, separate pool or partner up with some existing one.

http://www.mintsy.co/ (http://www.mintsy.co/)


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: Q7 on October 16, 2014, 11:52:47 AM
Did i interpret wrongly or am i seeing other things which you guys see differently? While the green line dips the red line which supposed to represent the hash rate is still moving upwards. It shows that it is still profitable to continue mining in certain parts of the world where cost of electricity, hardware are cheap


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: BigBoy89 on October 16, 2014, 01:59:53 PM
it was interesting to see anomaly chart like that :D
hashrate usually dip or crash when bitcoin prices crash too
but this one is different. did they just keep bitcoin from mining and sell it at the right price (when the price up)?
too risky movement i think


Title: Re: Miners did lower hashrate when 1 Bitcoin < $300
Post by: BitcoinHeroes on October 16, 2014, 02:30:01 PM
A lot of small home miner hit break-even and shut down, I believe thats what causes the lower hashrate...