Are people really still suggesting that price affects difficulty but not vice versa?
The argument that price causes difficulty is a simple one: Look, price went up, mining is profitable now, let's mine. I don't know of such a simple argument for the other direction, that is also not an argument for "price increase causes more price increases". It's pretty absurd -- difficulty affects our perceptions about how rare or valuable a coin is. All it takes is one case of somebody saying something like "difficulty is skyrocketing, I better hold onto my coins" to demonstrate that difficulty affects price (in this case, by increasing demand).
(Your example actually shows decreasing supply, but that's close enough.) Also, this argument can also be used in the case of "price is skyrocketing, I better hold onto my coins", which becomes self referential argument, and is the main reason why bubbles form, and also why investment scams and ponzi schemes exist. So I can't really say that this backward looking (difficulty causes price), or self-referential logic (price causes price) doesn't work. It works for some time, until it stops working. Okay, let's set BTC difficulty = 1 and see what happens to the price. If someone makes the argument that difficulty doesn't (or hardly) affect price, then we should be able to set the difficulty to whatever we want and it won't make much of any difference whatsoever. Here's a knockdown, simple argument for difficulty affects price -- get rid of the difficulty adjustment algorithm altogether and watch what happens to the price. If price isn't affected by difficulty, then it should be able to sustain itself in the total absence of difficulty adjustments. |
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Are people really still suggesting that price affects difficulty but not vice versa? It's pretty absurd -- difficulty affects our perceptions about how rare or valuable a coin is.
Only miners care about difficulty, so if you are a miner then you might care, but nobody else does. Besides, difficulty does not affect the total number of bitcoins or the number of new bitcoins, so there is no reason why it would affect the perception of rarity or value. Difficulty may have some small effect on the market supply because miners may react as group in response to the difficulty. However, contrast the number of new bitcoins to the volumes on exchanges and you will see that miners must only be a small portion of the market. If you aren't a miner but invest in BTC and don't care about difficulty, then you might want to reconsider your investment strategy. Non-miners should absolutely care about difficulty, for many reasons (e.g. Network security, indicators of community interest and market sentiment, etc.). |
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Are people really still suggesting that price affects difficulty but not vice versa? It's pretty absurd -- difficulty affects our perceptions about how rare or valuable a coin is. All it takes is one case of somebody saying something like "difficulty is skyrocketing, I better hold onto my coins" to demonstrate that difficulty affects price (in this case, by increasing demand).
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SPT5jsPZywuQ54CtmjpB6r9XV3WBYEhZy5 Thank you kindly  |
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5f7NEi2NJZ4SydPXnhG7xNth6vM4TepZBu Thank you! |
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GgVguot11gKgmotRdzA42cWMMq41XLtHw3 Thank you kindly |
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AJwo2RWY4UPNTLqkJ7zHnsgWvzwYdpRyhp Thank you kindly |
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PNfr4B7Xo5gCg1dBjbxymwMFcTvj7rBfq6
Thanks in advance, and good luck!
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DBDds6ixcGTXgJSW9Zo7psXpnovykuhq26 Thanks |
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DBDds6ixcGTXgJSW9Zo7psXpnovykuhq26 Thanks |
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5kerMMdag1ByLYN7wLDUx8vf6XJ84antTb Hey dev, care to share some of that 9 million premine after convincing me to waste my evening profits on launch day? Thanks  |
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So why is it currently on block 26 according to the pool?
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GMGF39ognwamodW41PYx9Vudvvvt5wjPEX
Thanks!
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9VJUkn3fD76y23UMezspvSn7Cag1PeZ6QS Thanks! |
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 USDE.POOLIGANS.COM- Dedicated hardware
- Split and clustered backend; sql-clustered, web-clustered and dedicated stratum servers
- Low latency, high bandwith connection
- 24/7
- Actively maintained and monitored pool
- EU based server- 1% Fee - PROP system Please post your username that you pre-registered in this thread, and you will get 0% fee.We are open for pre registrations and will open for miners at the designated time at launch. If you live in some timezone where you will not be awake for launch set up your cgminer with our pool as primary and use your favorite/current alt coin pool as secondary, you will automatically connect and start mining at our pool when it becomes operational at launch. Go to our site and reigster, make your workers and edit your cgminer.conf like this: (replace USERNAME.1 with your worker name and PASS with your chosen worker password) {
"pools" : [
{
"url" : "stratum+tcp://usde.pooligans.com:3331",
"user" : "USERNAME.1",
"pass" : "PASS"
},
{
"url" : "stratum+tcp://whateverpool.somecoin.com:3333",
"user" : "USERNAME.1",
"pass" : "PASS"
}
],- Pooligans staff Pre-registered and no-fee users:jacquette Mischu1989 Jagemo thekekk mytminer454 Honeypot Nick51705 dziubek58 nirom Artwinner dustyprawn dgb3 Suporte phil__65 mcscotty89 groggin Username "gogogo" Thanks! |
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Hello, I've been mining various altcoins via cpuminer on a couple of pools recently.
Do I understand it correctly that the work done between two 'Stratum detected new block' is lost in case there were no 'yay's in between?
Every time you see a 'yay' it means you submitted a valid share. When you submit shares, you receive rewards from the pool. If you don't submit any shares, you don't get paid. |
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views =/= value
Tell that to Google, Alexa, Facebook, Yahoo, etc etc... Except that the views related to the sites you mentioned directly correlate to the use of a particular service. There have been over 4.6 million views of the "What is Bitcoin?" video on YouTube, but there aren't 4.6 million Bitcoin users. |
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[WTS] 48 GLB @ .00022 GLB/BTC
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I have 48.3 GLB I'd like to sell for BTC. I will likely go with any reasonable offer. Make one Edit: Buyer sends first, no questions asked (okay, maybe one or two). |
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 17UDjnn96PCu3AGwnNuM7xu8kPbCEXw8GW |
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