Price of Bitcoin after ASIC revolution?

[Bendex]

Hi,
So if the new ASIC machines are going to speed up BC production over 10 fold, won't that have a big impact on the price of BC in the medium term?

[AMuppInTime]

Not really. It actually already has, and it should be taken into account when looking at the current price rise.
What this adds to the currency itself is that it becomes a more secure platform as a whole, and less likely to be the victim of a Botnet trying to disrupt the system. BUT there is now room for a botnet targeting ASICS farms.

[noeatnosleep]

No, because the way the algorithm works, they don't find bitcoins any faster. They just have a larger chance of being the one actually finding the bitcoins.

[organofcorti]

The price usually drives the network hashrate.

If supply increases 10 fold, then it will only be for a short period until the difficulty adjustment. It probably wouldn't be a ten fold increase for long enough to create a drop in price.

OTOH, as if the hashrate continually increases difficulty doesn't completely negate the effect and there could be a long term increase of ~10 to 20% in supply. Whether that could have a significant effect on the price remains to be seen.

[Bendex]

Not really. It actually already has, and it should be taken into account when looking at the current price rise.
What this adds to the currency itself is that it becomes a more secure platform as a whole, and less likely to be the victim of a Botnet trying to disrupt the system. BUT there is now room for a botnet targeting ASICS farms.

Is it true that 3 new miners popped up recently and took over 60% of the hash power?

[tinyfox266]

It will increase rapidly, I think.

[MegatonWarrior]

The miners' computing arms race is the natural progression for bitcoins and ASIC's are just a part of it.  Without them, they would not follow Moore's law which is a required part of the Satoshi's design of bitcoin.

It's why I don't understand the proclaimed "advantages" of litecoin.  Why force miners to use slower technology?  And how long will that last before someone overruns the blockchain with a litecoin ASIC?  Litecoin was designed to deter GPU's and ASIC's but now miners are using GPU's.  Next will come the ASIC's.  Then a litecoin crash?

[advanced]

I think that the price of BTC will highly depend on the attitude of ASICS miners in the short term... Which I cant tell..