relationship of bitcoin prices and mining price

[Erdogan]

The labour theory of value and the cost theory of value is the same. The idea is that capital is only condensed labour in the form of half made stuff that is the raw materials, and tools which also have to be made by someone. So all products and services are things from nature plus labour. Which is correct, the wrong part is that it governs the price.

The price is however derived from individuals preferring some thing over another thing; gather some people in a market and the price will be revealed by their actions.

[mrhelpful]

It takes time to find bitcoin, so its just only a matter of how many being left in my view.

People who sell based on their personal reasons, but if its difficult to find something its value should be double checked before selling..

[lissandra]

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

He is mistaken. Anybody can write a flawed paper.

There is no mechanism by which the cost of mining drives the price of bitcoin. Mostly people that believe that just confuse correlation with causation, and make bad assumptions.

Yeah anyone can, shit look at the us dollar for example.

The price is based on new blood, new volume of buyers at a rapid pace using it daily. Or else I dont see any value going up imo.

[muhrohmat]

mining gets harder in price for THs mining BTC and price of BTC gets lower too sometimes soo the mining will become a bit more rare but the other part of coin its true more miners more coins and a bit more devaluated coin too less rarity

[hazenyc]

mining gets harder in price for THs mining BTC and price of BTC gets lower too sometimes soo the mining will become a bit more rare but the other part of coin its true more miners more coins and a bit more devaluated coin too less rarity

more miners does NOT equal more coins, that is the whole point. More miners only equals more difficulty.

[expert4knowledge]

mining gets harder in price for THs mining BTC and price of BTC gets lower too sometimes soo the mining will become a bit more rare but the other part of coin its true more miners more coins and a bit more devaluated coin too less rarity

more miners does NOT equal more coins, that is the whole point. More miners only equals more difficulty.

But does nt the chance of finding more coins increase?

[Anony]

When the price of Bitcoins is higher, people are more likely to mine, especially people whose costs are close to their expected proceeds.
As the demand of bitcoin increase, mining prices also increase as it include hardware to purchase,supply of electricity (countinous flow of power)etc.
because of blockchain as it has to countinous update in transaction.
as with decrease in demand of bitcoin ,mining price may effect as they have to overcome with their regular charges.

[Erdogan]

mining gets harder in price for THs mining BTC and price of BTC gets lower too sometimes soo the mining will become a bit more rare but the other part of coin its true more miners more coins and a bit more devaluated coin too less rarity

more miners does NOT equal more coins, that is the whole point. More miners only equals more difficulty.

But does nt the chance of finding more coins increase?

No. The difficulty increases. The coin creation (finding) is essentially predetermined.

[Erdogan]

When the price of Bitcoins is higher, people are more likely to mine, especially people whose costs are close to their expected proceeds.
As the demand of bitcoin increase, mining prices also increase as it include hardware to purchase,supply of electricity (countinous flow of power)etc.
because of blockchain as it has to countinous update in transaction.
as with decrease in demand of bitcoin ,mining price may effect as they have to overcome with their regular charges.

Correct. Higher price means more expenditure on mining. Note the direction of the causality.

[expert4knowledge]

When the price of Bitcoins is higher, people are more likely to mine, especially people whose costs are close to their expected proceeds.
As the demand of bitcoin increase, mining prices also increase as it include hardware to purchase,supply of electricity (countinous flow of power)etc.
because of blockchain as it has to countinous update in transaction.
as with decrease in demand of bitcoin ,mining price may effect as they have to overcome with their regular charges.

Correct. Higher price means more expenditure on mining. Note the direction of the causality.

So the direction is vice versa of what people including me think

[jenifer0012]

your question is very vague. please specify what you mean by "mining prices".
However, mining cost shouldn't affect bitcoins since people involved in buying and selling of bitcoins aren't necessarily miners.

[Erdogan]

When the price of Bitcoins is higher, people are more likely to mine, especially people whose costs are close to their expected proceeds.
As the demand of bitcoin increase, mining prices also increase as it include hardware to purchase,supply of electricity (countinous flow of power)etc.
because of blockchain as it has to countinous update in transaction.
as with decrease in demand of bitcoin ,mining price may effect as they have to overcome with their regular charges.

Correct. Higher price means more expenditure on mining. Note the direction of the causality.

So the direction is vice versa of what people including me think

Many people get this wrong. Do you think majority makes it right?

[expert4knowledge]

When the price of Bitcoins is higher, people are more likely to mine, especially people whose costs are close to their expected proceeds.
As the demand of bitcoin increase, mining prices also increase as it include hardware to purchase,supply of electricity (countinous flow of power)etc.
because of blockchain as it has to countinous update in transaction.
as with decrease in demand of bitcoin ,mining price may effect as they have to overcome with their regular charges.

Correct. Higher price means more expenditure on mining. Note the direction of the causality.

So the direction is vice versa of what people including me think

Many people get this wrong. Do you think majority makes it right?

I am thinking most of the people think wrong about it and it iscomplicated

[Erdogan]

When the price of Bitcoins is higher, people are more likely to mine, especially people whose costs are close to their expected proceeds.
As the demand of bitcoin increase, mining prices also increase as it include hardware to purchase,supply of electricity (countinous flow of power)etc.
because of blockchain as it has to countinous update in transaction.
as with decrease in demand of bitcoin ,mining price may effect as they have to overcome with their regular charges.

Correct. Higher price means more expenditure on mining. Note the direction of the causality.

So the direction is vice versa of what people including me think

Many people get this wrong. Do you think majority makes it right?

I am thinking most of the people think wrong about it and it iscomplicated

The same rule goes for all things in the market, however harder to understand, like cars and bread and whatnot. The consumers value it, and the cost in the free market adjusts to price. But for bitcoin, it is rather straightforward, because you have the difficulty that adjusts.

Note that it is the market that does the cost adjustment. If there is no freedom in the market, the cost will not adjust, this is also the reason for the loss of productivity in socialism.

[Amph]

When the price of Bitcoins is higher, people are more likely to mine, especially people whose costs are close to their expected proceeds.
As the demand of bitcoin increase, mining prices also increase as it include hardware to purchase,supply of electricity (countinous flow of power)etc.
because of blockchain as it has to countinous update in transaction.
as with decrease in demand of bitcoin ,mining price may effect as they have to overcome with their regular charges.

Correct. Higher price means more expenditure on mining. Note the direction of the causality.

it is the reason why someone should buy when the price is not being pumped and mine when it is pumped only, to take advantage of the diff that can't catch up the price so fast, then you can shut down your miners if electricity isn't good enough or sell it if you want...

[Erdogan]

When the price of Bitcoins is higher, people are more likely to mine, especially people whose costs are close to their expected proceeds.
As the demand of bitcoin increase, mining prices also increase as it include hardware to purchase,supply of electricity (countinous flow of power)etc.
because of blockchain as it has to countinous update in transaction.
as with decrease in demand of bitcoin ,mining price may effect as they have to overcome with their regular charges.

Correct. Higher price means more expenditure on mining. Note the direction of the causality.

it is the reason why someone should buy when the price is not being pumped and mine when it is pumped only, to take advantage of the diff that can't catch up the price so fast, then you can shut down your miners if electricity isn't good enough or sell it if you want...

In general, it is the speculation of future value. Taking into account exceptional situations, where other currencies fail, can not be moved, can be confiscated and so on, is included in my personal valuation.

If you can profit on the ups and downs; good for you, and good for the stability of the value. It applies both to mining decisions and trading decisions.

[expert4knowledge]

It is good to know that the costs of mining decrease if the price decrease which is vice versa of what we think.

[pitham1]

It is good to know that the costs of mining decrease if the price decrease which is vice versa of what we think.

Only if people start shutting down miners because the price of bitcoin is too less. As long as their marginal costs are covered, they will continue to mine.

[lissandra]

well despite the mining cost to mine for bitcoin.

arent the miners needed regardless if they mine for bitcoins or not, since bitcoins rely on miners to find the transaction log?

[Erdogan]

It is good to know that the costs of mining decrease if the price decrease which is vice versa of what we think.

Only if people start shutting down miners because the price of bitcoin is too less. As long as their marginal costs are covered, they will continue to mine.

This is only the effect of disinvestment, and does not change the basic rule.