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Author Topic: Will the surge of ASIC's decrease value?  (Read 488 times)
idividebyzero
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March 21, 2013, 11:41:48 PM
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I was thinking of buying some coins but am worried about the Avalon shipments causing a decrease in value since they make so much money. I dont really understand how mining works and how it affects the market. Is it a bad idea to buy now? Or a bad idea NOT to buy now because of the new mining tech?
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rudeguy
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March 22, 2013, 12:28:58 AM
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I was thinking of buying some coins but am worried about the Avalon shipments causing a decrease in value since they make so much money. I dont really understand how mining works and how it affects the market. Is it a bad idea to buy now? Or a bad idea NOT to buy now because of the new mining tech?

I bought a good bit of coins last week @ $47 USD. Based on my cursory knowledge, I think it's not a bad time to buy- not a good time either. With less people buying BTC due to rising prices, it will eventually start to come back down in price with no demand.

However, from what I've read about the dedicated mining devices, it seems like the BTC network adjusts difficulty based on the current processing power. This is to prevent someone from "strong-arming" the network and controlling transaction records. Hopefully this will mean that even with the mining devices, the BTC value should at least remain stable.

I'd like to know more as well! That's just my view on things, I could be mistaken.
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March 22, 2013, 12:31:59 AM
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I was thinking of buying some coins but am worried about the Avalon shipments causing a decrease in value since they make so much money. I dont really understand how mining works and how it affects the market. Is it a bad idea to buy now? Or a bad idea NOT to buy now because of the new mining tech?
Over about the next four years there will be about 25 BTC "made" every 10 minutes.  The network will adjust to make this happen no matter how many people mine or how much mining happens.

One less thing for you to worry about...

The amount of mining and the number of miners is driven by price, not the other way around.  In other words the higher the price goes the more people get into mining thinking that they will make money.  They don't since the more people there are the less each one gets since the number of new bitcoins available each day is constant.

See?

Our family was terrorized by Homeland Security.  Read all about it here:  http://www.jmwagner.com/ and http://www.burtw.com/  Any donations to help us recover from the $300,000 in legal fees and forced donations to the Federal Asset Forfeiture slush fund are greatly appreciated!
DannyHamilton
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March 22, 2013, 12:44:08 AM
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Approximately every 10 minutes on average 25 brand new bitcoins come into existence.  Running an ASIC miner allows you to get more money because you get more of that 25 BTC (or are more likely to be the miner who gets that 25 BTC if you are solo mining), not because more than 25 BTC are created. The absolute bes you can do as an ASIC miner is get every new bitcoin that is created, but to do that you have to be solo mining and have to be providing more hash power to the network than all other miners in the entire world combined.  Even then, you can't get more than 25 BTC per block, and the blocks won't be solved much faster than 144 blocks per day.  (That's the same 25 BTC per block and 144 blocks per day that would be created even if the ASIC miner wasn't getting all of them to themselves).

Gator-hex
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March 22, 2013, 01:44:40 AM
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Short term no, the only one on sale required 88BTC to buy driving up demand for Bitcoins
Long term yes, they require less power to hash.

techne
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March 22, 2013, 04:32:01 AM
 #6

I think there are more important factors.
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