Interesting. If they want bitcoins, why wouldn't they just buy, instead of mine?


Ok.
Does that give the hashrate any way to influence the price?

Indeed.
I've yet to see a single person making that argument.

"Eh, Bitcoin is interesting, but the hashrate is too low for now... network isn't secure enough."

So, what you are saying is that the Avalon batch 2 and the batch 3 of asicminers are not going to increase the hashrate?
Because such a jump in the hashrate sure would look like a peak following the price in my book.

Reddit was full of people investing in mining a month ago. Now it's rather... silent.
My guess is many bought mining equipment and they will receive it in the coming weeks/months.

Do it! I'm open to discussion. If you can zoom in and circle the interesting parts, I'll be happy to look.

Ok... and the consequences of the philosophical motivations are....?



While some argue some of my points, I've yet to see an opposing argument showing that hashrate influences the price.

Except Bitcoin isn't a stock in your example, it's the gold.

I expect it to follow the same pattern as the price: to peak and slowly diminish after that.
Last price peak in 2012 induced a hashrate increase that lasted for months.

Anyone has any data pointing to a reverse relationship, where hashrate would be driving price?

It also says that the earth is 6000 years old.

New and improved technologies do push the hashrate up, but one can still see the clear relation between price and hashrate.

In your explanation, where do the FPGAs fit?

adamstgBit, sometimes I wonder if you are just trolling... 

I've read at multiple places that some of you think that a higher hashrate means a higher price, while in fact I think it's the opposite.

But before, here's a little economic theory:

People will do hard stuff to obtain something because it is valuable, not the other way around.

With concrete example:

A man will go underwater to get a pearl because it's valuable; the pearl is not valuable because a man has to go get it.

People go deep to mine gold because it's valuable; gold is not valuable because people have to go deep to mine it.

In relation to Bitcoin, we could say that miners mine Bitcoin because it's valuable.
(Otherwise they would just fork the client and mine their own coin. Clearly the "mining" in itself isn't the goal.)

Further than that, here's a little graph:



What I want to show you is that a surge in price occurs before an increase in hashrate.
The price is driving the hashrate, not the other way around.

Each time there's a little bump in the price, you can see a response in the hashrate, lagging a few months behind.
The lag is understandable, as it takes time to purchase and set up a mining rig.
In case of falling prices, it can take a while for the miners to accept to stop their operations.

Some of you argue that the current rising hashrate indicates a future higher price.
On the contrary, I say that the rising hashrate is only a response of the recent price increase.

Inb4 salt takes back its rightful place as money and leaves all PMs olders S.O.L. 

Was there any financial innovation in the last two decades?

Yeah, God forbid the price go down to five times what it was less than a year ago.

Consequences will never be the same.

Perhaps they already did.

Didn't you say $110 previously?

adamstgBit, we went past $110... did you panic buy like you said you would? 

Ah, misread, my apologies.

Closed what?

The shorts you were closing at $90?

Mysterious walls at Cavirtex are now gone.

Just buy before the storm... we all know Bitcoin is only going up Up UP anyway 

Or the calm before the calm before the storm.