network terahash goes up, but not the price of btc

[solareclipse64236]

why is this? shouldn't the increase in terahash bandwidth cause an increase in price of btc?

i mean it means that more people are fighting over blocks and its rewards

[nobbynobbynoob]

Hashrate isn't the only factor influencing the market.

[tbcoin]

IMO, in any case, the price affects the hashrate, no the hashrate the price.

Edit:
anyway that will change with ASIC, we will have a huge hashrate at low consumption, so even if the price falls nobody stop mining.

[ryann]

I have no idea why people think the price of a BTC should go up in value when there is more of them available. It makes no sense to me.

[greyhawk]

I have no idea why people think the price of a BTC should go up in value when there is more of them available. It makes no sense to me.

Bitcoin can only go UP UP UP!

[tbcoin]

I have no idea why people think the price of a BTC should go up in value when there is more of them available. It makes no sense to me.

I don't understand what you mean with "there is more of them available"


Edit:

The price, in relation to mining, could rise in the medium term by:

* The Reduction, the miners will use the same time for half of production = sell more expensive.

* ASIC, miners have large GPU rigs and continue mining, not only will be affected by the reduction, but by a high difficulty that further reduce the production = sell more expensive.

[Stephen Gornick]

I have no idea why people think the price of a BTC should go up in value when there is more of them available. It makes no sense to me.

Are you thinking a rising hash rate results in a higher number of coins mined?   It doesn't, as difficulty adjusts to compensate.

Back about two and a half years ago, when all the miners for the entire network combined was under 1 Ghash/s, about 7,200 bitcoins were mined each day.  Today with all miners combined totaling 22,000 Ghash/s, 7,200 bitcoins are mined each day.

[Klober]

It will definitely be interesting to watch the going price for BTC over the next 3 months. It will give us a good idea of whether BTC will survive and flourish over the long term.

[ryann]

There are more coins on the market now. More coins are available.

[odolvlobo]

why is this? shouldn't the increase in terahash bandwidth cause an increase in price of btc?

i mean it means that more people are fighting over blocks and its rewards

That 50 (soon to be 25) BTC reward is a small piece of the bitcoin economy. Most people using and trading BTC are not fighting over the block reward.

Anyway, your premise is wrong. The price of BTC is rising. It was 1/3 of the current price less than 1 year ago.

[SAC]

why is this? shouldn't the increase in terahash bandwidth cause an increase in price of btc?

i mean it means that more people are fighting over blocks and its rewards

That 50 (soon to be 25) BTC reward is a small piece of the bitcoin economy. Most people using and trading BTC are not fighting over the block reward.

Anyway, your premise is wrong. The price of BTC is rising. It was 1/3 of the current price less than 1 year ago.

And 15 months ago it was just about 3x the current price or if going back to last December just about 1/6, if you are choosing arbitrary point in time to try and look like you are making a relevant point at least pick the one that looks the best. Oh and to the OP as the difficulty has increased this summer the price has risen as well from $5 at the start to just about $13 now. More than making up for the increase in the difficulty.

[kwoody]

Bitcoin's value only goes up when people buy them. People buy them when they're needed to pay for goods and services. Goods and services that can ONLY be paid for with Bitcoins are therefore the best way to increase the value of Bitcoins. Bitcoin jumped in value by approximately 3000% when the world discovered Silk Road. When merchants are willing to take Bitcoin over fiat, that's when Bitcoin wins, and rises in value. Hashrate has nothing to do with goods and services available to public and private markets, with the exception of companies who sell mining equipment. If anything, ASICs will drive prices down temporarily since the production of Bitcoins will be inflated while blockchain difficulty compensates for the increase hashrate. People with Bitcoins who DON'T mine are the ones driving the value up, and many of them will be completely unaware of the upcoming block reward being cut in half. If you want Bitcoin value to rise, merchants need to accept Bitcoin only, and deny customers who can only pay with fiat. This is much easier said than done, as most merchants who accept only Bitcoin are typically dealing in illegal goods and services and wish to do business in a clandestine fashion.

[lassdas]

network terahash goes up, but not the price of btc

What i'm wondering is, what timeframe are you looking at?

When i look at the charts i only see the opposite,
that the price of btc went up about 20% within the last month,
but the network hashrate didn't change at all.

[BurtW]

Price of BTC goes up -> More people mine -> Network hashrate goes up

Price of BTC goes down -> Miners take a break, give up, go back to playing games, etc. -> Network hashrate goes down

[gmaxwell]

Price of BTC goes up -> More people mine -> Network hashrate goes up
Price of BTC goes down -> Miners take a break, give up, go back to playing games, etc. -> Network hashrate goes down

Yep. Moreover, the price has already gone up. GPU mining is loopy profitable again... rate is still catching back up, no doubt tempered by expectations of incoming asics.

[SAC]

network terahash goes up, but not the price of btc

What i'm wondering is, what timeframe are you looking at?

When i look at the charts i only see the opposite,
that the price of btc went up about 20% within the last month,
but the network hashrate didn't change at all.

We have had almost three difficulty increases in this last month, the hash rate has increased.

[BurtW]

Scroll down to the charts at the bottom of the page at this link and look at the various charts.  

http://bitcoinx.com/charts

So now you do not need to guess at what is happening.  You can just look at what is happening.

[FbBitcoinLottery]

the price is going up... just slowly, but itll probably pick up when we get closer to the split...

[lassdas]

We have had almost three difficulty increases in this last month, the hash rate has increased.

Did you even take the time to look at the hashrate-chart?
It has been everywhere between ~19TH/s and ~24TH/s within the last 30days, right now where at ~20TH/s, so where exactly has it increased?

[SAC]

We have had almost three difficulty increases in this last month, the hash rate has increased.

Did you even take the time to look at the [urlhttp://blockchain.info/charts/hash-rate?timespan=30days]hashrate-chart[/url]?
It has been everywhere between ~19GH/s and ~24GH/s within the last 30days, right now where at ~20GH/s, so where exactly has it increased?

Don't have too just yesterday it went from the high 2m to just over 3m an increase, the diff change before that was an 8-10% increase same as the one before it, it has been doing similar increases for the last few months. The last three diff changes all increases as the ones before them were.

http://blockchain.info/block-index/311130/00000000000003a5e28bef30ad31f1f9be706e91ae9dda54179a95c9f9cd9ad0
http://blockchain.info/block-index/311129/000000000000041fb61665c8a31b8b5c3ae8fe81903ea81530c979d5094e6f9d

http://blockchain.info/block-index/297251/000000000000002e00a243fe9aa49c78f573091d17372c2ae0ae5e0f24f55b52
http://blockchain.info/block-index/297250/0000000000000304760bf583f4ac241c5ffe77312fa213634eba252c720530f1

http://blockchain.info/block-index/277923/00000000000003f64d7662362aba91a5bdccbdbf6574fb42ddca28f1f0ec11fe
http://blockchain.info/block-index/277922/000000000000067080669115c445f378f3dec19787558d0e03263b9dec5d7720