expert4knowledge (OP)
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June 07, 2015, 07:05:57 PM |
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Hello all, I want to know what relationships exist between mining prices and bitcoin prices and more clearly now bitcoin extraction is about 400 bucks so is it possible that bitcoin price goes more than 1000
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Amph
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June 07, 2015, 07:23:25 PM |
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it's not very clear what do you mean, mining price in the sense of what? hardware cost? total earning per day?
also bitcoin extraction is unclear too, shed more light on those, if you want the right answer
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NorrisK
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June 07, 2015, 07:35:21 PM |
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I think you mean it currently costs about 400 usd to "extract" (eg. mining?) a bitcoin. I think it is much less at the moment, especially in countries with cheap power.
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expert4knowledge (OP)
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June 07, 2015, 07:38:31 PM |
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Yes it can be less too so how do some people predict its peice can be more than 1000$? It does not seem reasonable
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Erdogan
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June 07, 2015, 08:07:00 PM |
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It is absolutely clear that mining cost follows price. Higher price -> more mining -> higher difficulty -> higher cost.
Currently, it looks like miners are investing to position themselves before an expected price hike.
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expert4knowledge (OP)
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June 07, 2015, 08:30:38 PM |
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It is absolutely clear that mining cost follows price. Higher price -> more mining -> higher difficulty -> higher cost.
Currently, it looks like miners are investing to position themselves before an expected price hike.
Thanka, n fact I was thinking that bitcoin price is a function of mining cost which is opposit of what you are saying
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ThEmporium
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June 07, 2015, 08:44:07 PM |
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Yes it can be less too so how do some people predict its peice can be more than 1000$? It does not seem reasonable
The highest value of Bitcoin value rise upto 260$, According to Mark T. Williams, as of 2014, bitcoin has volatility seven times greater than gold, eight times greater than the S&P 500, and eighteen times greater than the U.S. dollar, the high volatility of a startup currency makes sense, because people are still experimenting with the currency to figure out how useful it is.
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odolvlobo
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June 08, 2015, 07:23:46 AM |
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It is absolutely clear that mining cost follows price. Higher price -> more mining -> higher difficulty -> higher cost. Currently, it looks like miners are investing to position themselves before an expected price hike.
Thanka, n fact I was thinking that bitcoin price is a function of mining cost which is opposit of what you are saying Most of the people buying and selling bitcoins are not miners so there is no reason why mining cost would affect bitcoin price.
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expert4knowledge (OP)
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June 09, 2015, 09:38:37 AM |
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It is absolutely clear that mining cost follows price. Higher price -> more mining -> higher difficulty -> higher cost. Currently, it looks like miners are investing to position themselves before an expected price hike.
Thanka, n fact I was thinking that bitcoin price is a function of mining cost which is opposit of what you are saying Most of the people buying and selling bitcoins are not miners so there is no reason why mining cost would affect bitcoin price. But price is a function of cost so it can affect
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syuhide
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June 09, 2015, 09:42:09 AM |
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Bitcoin mining is the process of earning bitcoin in exchange for running the verification to validate bitcoin transactions.
and bitcoin price now depends upon its usage.. we users of bitcoin will get only profit when more and more demands of bitcoin arises..vice versa with mining.
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Febo
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June 09, 2015, 09:47:39 AM |
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It is absolutely clear that mining cost follows price. Higher price -> more mining -> higher difficulty -> higher cost. Currently, it looks like miners are investing to position themselves before an expected price hike.
Thanka, n fact I was thinking that bitcoin price is a function of mining cost which is opposit of what you are saying Most of the people buying and selling bitcoins are not miners so there is no reason why mining cost would affect bitcoin price. There is no reason why miners would buy bitcoins. Price totally gets affected of mining. There was one research made by Adam Hayes, i was listening on one of Bitcointalk podcast. I just went to check and saw he posted all here: http://papers.ssrn.com/sol3/cf_dev/AbsByAuth.cfm?per_id=2372041
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Amph
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June 09, 2015, 10:27:00 AM |
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It is absolutely clear that mining cost follows price. Higher price -> more mining -> higher difficulty -> higher cost. Currently, it looks like miners are investing to position themselves before an expected price hike.
Thanka, n fact I was thinking that bitcoin price is a function of mining cost which is opposit of what you are saying Most of the people buying and selling bitcoins are not miners so there is no reason why mining cost would affect bitcoin price. There is no reason why miners would buy bitcoins. actually there is, but only in the case the price fall too low, and their whole mining activity become unprofitable, the first thing they will try is to support buyers, to raise the confidence in the future price and starting a small pump that should bring the price to the profitable level, the second , well.... they will begin to sell their hwdware
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Erdogan
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June 09, 2015, 10:51:53 AM |
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It is absolutely clear that mining cost follows price. Higher price -> more mining -> higher difficulty -> higher cost. Currently, it looks like miners are investing to position themselves before an expected price hike.
Thanka, n fact I was thinking that bitcoin price is a function of mining cost which is opposit of what you are saying Most of the people buying and selling bitcoins are not miners so there is no reason why mining cost would affect bitcoin price. But price is a function of cost so it can affect Eh.. no. Cost is a function of price.
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Bitdonator
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June 09, 2015, 11:04:34 AM |
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its simple, higher mining cost > higher price.
When block reward halve, we can expect big increase of price
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expert4knowledge (OP)
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June 09, 2015, 11:17:14 AM |
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its simple, higher mining cost > higher price.
When block reward halve, we can expect big increase of price
So can decreasing mining costs decrase bitcoin prices? other guys do not agree wirh this
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AtheistAKASaneBrain
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June 09, 2015, 12:11:54 PM |
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its simple, higher mining cost > higher price.
When block reward halve, we can expect big increase of price
So can decreasing mining costs decrase bitcoin prices? other guys do not agree wirh this The thing is it depends on your situation. Someone that is living in a place where electricity cost are really low will have lower mining costs than someone living in Las Vegas or something. So the system regulates itself benefiting someone out there.
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Erdogan
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June 09, 2015, 12:39:33 PM |
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its simple, higher mining cost > higher price.
When block reward halve, we can expect big increase of price
Quite simple, yes, but the opposite of what you say.
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Zorrocoin
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June 09, 2015, 01:40:02 PM |
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-snip- When block reward halve, we can expect big increase of price
You can also expect some of miners just shut down their miners due to high electricity cost. At first halving , there was another expectation. ASICS race. Since there were more energy efficient miners came to the market , BTC price just went crazy due to this. However this time it will be a mistery. I still think there will be some increase at price but not too much. But still, we have an opportunity about this halving by watching LTC first halving.
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JayCoDon
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June 09, 2015, 03:08:26 PM |
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I spoke with the CEO of BTCS, which has launched a mining farm down in the Carolinas (if I remember correctly). Based on the current hash rate and their price of electricity, they are still making a profit even with where the price of BTC is currently. And then there are chips that are coming out this summer that argue that their efficiency and hashing power will enable miners to remain profitable even if bitcoin were to drop underneath $100/BTC.
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Amph
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June 09, 2015, 03:39:03 PM |
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-snip- When block reward halve, we can expect big increase of price
You can also expect some of miners just shut down their miners due to high electricity cost. At first halving , there was another expectation. ASICS race. Since there were more energy efficient miners came to the market , BTC price just went crazy due to this. However this time it will be a mistery. I still think there will be some increase at price but not too much. But still, we have an opportunity about this halving by watching LTC first halving. or you can expect the miners to remain the same and the price too, because the first will have a better technology that can sustain the price halving, because their electricity will halve too, so instead of having 80%(100-20 form electricity) they will have 40% (50-10)
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