With BTC at an all-time high (what's new), whats the demand for?

[Oldsport]

Spend bitcoins on getting more bitcoins:

[akspecs]

How would the entrance of ASICs make the price tank?

The initial increase in bitcoins prior to the mining difficulty adjustment will most likely cause a pullback due to supply demand metrics.  Using supply demand metrics this will likely cause a short term pull back in price.

-ak

[Surpbitcoin]

How would the entrance of ASICs make the price tank?

The initial increase in bitcoins prior to the mining difficulty adjustment will most likely cause a pullback due to supply demand metrics.  Using supply demand metrics this will likely cause a short term pull back in price.

-ak

Sorry buddy but I think your wrong here and I'll explain why. Even once the new asics are out and mining, there's still only going to be 25 coin rewards, the only thing that having an asic now will do for you is allow you and your pool to have more power and as such earn more of the rewards then normal, there wont be an abundance of coins because of the abundance of power.

I assume any smart miner will stack his newly acquired asic mining coins and not  cash them out every day upon payment. If anything the new asics will raise the price, because more people will believe in mining and get into it, and they'll do that by buying BTC and then spending them on miners, especially if Avalon only takes BTC!

[akspecs]

I assume any smart miner will stack his newly acquired asic mining coins and not cash them out every day upon payment. If anything the new asics will raise the price, because more people will believe in mining and get into it, and they'll do that by buying BTC and then spending them on miners, especially if Avalon only takes BTC!

You can be right - but this is a statement based on a scenario - on the scenario that miners will save / hoard their bitcoins.  IMHO this has many ill effects.  Whether or not you (hypothetical) as a miner will sell your produced bitcoins, there will be a miner who will. 

My personal insight regarding my mining output and other miner's outputs is sell like crazy when bitcoin is as expensive as it is today.  Not only is this happening, but it SHOULD happen.  Miners are there to make sure that the price of bitcoin doesn't spiral out of control.  They're also there to make sure bitcoin is trading at a fair price.  At the end of the day, honest miners need to pay for electricity.  Electricity payments aren't accepted in bitcoin - yet.

[Surpbitcoin]

I assume any smart miner will stack his newly acquired asic mining coins and not cash them out every day upon payment. If anything the new asics will raise the price, because more people will believe in mining and get into it, and they'll do that by buying BTC and then spending them on miners, especially if Avalon only takes BTC!

You can be right - but this is a statement based on a scenario - on the scenario that miners will save / hoard their bitcoins.  IMHO this has many ill effects.  Whether or not you (hypothetical) as a miner will sell your produced bitcoins, there will be a miner who will. 

My personal insight regarding my mining output and other miner's outputs is sell like crazy when bitcoin is as expensive as it is today.  Not only is this happening, but it SHOULD happen.  Miners are there to make sure that the price of bitcoin doesn't spiral out of control.  They're also there to make sure bitcoin is trading at a fair price.  At the end of the day, honest miners need to pay for electricity.  Electricity payments aren't accepted in bitcoin - yet.

Its not like mining is something new, people are mining everyday and some like you said, are cashing out to cover the bills. But why would the ratio of cashing out change?  I dont see the new rigs being able to create a sell frenzy. You may think this is a good time to sell while others disagree. This is all pure speculation all based on our "in-mind" scenarios but the fact remains that if more and more people get into bitcoins then supply and demand will come into play like it is now and the price will steadily rise to numbers we could only imagine. Here's to wishing!

[Anon136]

its probably a great time to cash in some bitcoins for silver. Silver is unusually low and bitcoin is unusually high.

Silver is useless, Bitcoin is not

Silver is one of the most useful materials on the planet. it has many amazing and unique properties that make it useful in electronics, photography, medicine, solar technology, mirror fabrication and of course as money. Silver has the highest conductivity to density ratio, it is a natural anti-microbial, it is the most conductive raw element as well as the most reflective substance in the universe. Im not saying that you should chose one over the other, but i will say they are both great investments and you would probably be wise to diversify into silver atleast a little.

[Anon136]

How would the entrance of ASICs make the price tank?

The initial increase in bitcoins prior to the mining difficulty adjustment will most likely cause a pullback due to supply demand metrics.  Using supply demand metrics this will likely cause a short term pull back in price.

-ak

you are failing to understand how markets work. Sure all things being equal an increase in supply will lead to a decrease in price but markets price these things in gradually over time. the switch to asics for example was probably priced in over a year ago.

[akspecs]

you are failing to understand how markets work. Sure all things being equal an increase in supply will lead to a decrease in price but markets price these things in gradually over time. the switch to asics for example was probably priced in over a year ago.

*gasp*

You mean the idea of ceteris paribus is impractical in the real world?

You're saying there's a chance that ASICS were already priced into the markets!?  

I can believe that.

But I don't think it's far fetched to think that a new technology will bring down the short term price of bitcoin.  I mean, this may be simple minded - but when new technologies make it more efficient to do something, won't the price go down?

The hash rate per watt of electricity will continue to decrease.  Meanwhile, it will become more common for miners to put more competitive prices of BTC/$ because more and more miners will be able to accept a smaller ROI due to the competition on the exchanges.

Also, bitcoin in it's CURRENT stage is an inflationary asset.  Inflation will continue to remain positive for many more years before official deflation hits.  But what do I know - the markets may have priced this in already as well.

[Surpbitcoin]

you are failing to understand how markets work. Sure all things being equal an increase in supply will lead to a decrease in price but markets price these things in gradually over time. the switch to asics for example was probably priced in over a year ago.

*gasp*


You're saying there's a chance that ASICS were already priced into the markets!?  

Believe it, I too have been told the same thing by many miners all whom have a very large stake in mining.

[skilo]

Now is a good time to sell, It peaked at $50 then the sell off started and the price tanked to around $38, It's gone parabolic and when the bubble pops again you might see BTC at 2011 prices again, That's my thoughts on it anyway.

I don't think $45 - $50 is a valid price for BTC.