Bitcoin Forum
December 09, 2016, 07:55:51 AM *
News: Latest stable version of Bitcoin Core: 0.13.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: Estimated price after Difficulty increase?  (Read 1873 times)
Notrem
Member
**
Offline Offline

Activity: 65


View Profile
June 15, 2011, 10:49:18 AM
 #1

Hi

quick question: how do you think difficulty increase will affect bitcoin price?
1481270151
Hero Member
*
Offline Offline

Posts: 1481270151

View Profile Personal Message (Offline)

Ignore
1481270151
Reply with quote  #2

1481270151
Report to moderator
1481270151
Hero Member
*
Offline Offline

Posts: 1481270151

View Profile Personal Message (Offline)

Ignore
1481270151
Reply with quote  #2

1481270151
Report to moderator
1481270151
Hero Member
*
Offline Offline

Posts: 1481270151

View Profile Personal Message (Offline)

Ignore
1481270151
Reply with quote  #2

1481270151
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
DamienBlack
Jr. Member
*
Offline Offline

Activity: 56


View Profile
June 15, 2011, 10:51:43 AM
 #2

I think most people buying and selling right now are informed enough to have already taken the difficulty increase into account.

The newbies are escaping their pen.

I trade bitcoin options at https://bitoption.org/ ... Join me.
I play poker at https://betco.in/ ... Join me.
Support the bitcoin economy, what do you do?
Tips: 1NfXhiTFEdKQTdLy49s6DYAP1K7MeFWyao
Nythain
Jr. Member
*
Offline Offline

Activity: 56



View Profile
June 15, 2011, 10:55:59 AM
 #3

*cough*difficulty doesn't drive price*cough*

saqwe
Full Member
***
Offline Offline

Activity: 224



View Profile WWW
June 15, 2011, 11:10:53 AM
 #4

*cough*difficulty doesn't drive price*cough*

well I hope your not right, and those 42 Mhash... is this a laptop?


Cheers
Jan

Notrem
Member
**
Offline Offline

Activity: 65


View Profile
June 15, 2011, 11:20:38 AM
 #5

difficulty "drives" price in my opinion. When you earn less bitcoin, the value of it is higher. It's like with gold. When there's less gold in the world, it would be more expenseive
DamienBlack
Jr. Member
*
Offline Offline

Activity: 56


View Profile
June 15, 2011, 11:25:54 AM
 #6

This has been hashed many times. The relationship between difficulty and price is clearly very complex and and goes both ways. When the price hit $30, I went out and bought two new graphics card. So in that small case, the price helped push the difficulty up, not the other way around.

I trade bitcoin options at https://bitoption.org/ ... Join me.
I play poker at https://betco.in/ ... Join me.
Support the bitcoin economy, what do you do?
Tips: 1NfXhiTFEdKQTdLy49s6DYAP1K7MeFWyao
Notrem
Member
**
Offline Offline

Activity: 65


View Profile
June 15, 2011, 11:28:43 AM
 #7

but every time difficulty increases, the price go up
Synaptic
Member
**
Offline Offline

Activity: 84


View Profile
June 15, 2011, 11:39:44 AM
 #8

This has been hashed many times. The relationship between difficulty and price is clearly very complex and and goes both ways. When the price hit $30, I went out and bought two new graphics card. So in that small case, the price helped push the difficulty up, not the other way around.

Still glad you made that purchase?  Especially since by the time you actually got the cards the price was far, far from $30 (assuming mail-ordered)!
DamienBlack
Jr. Member
*
Offline Offline

Activity: 56


View Profile
June 15, 2011, 11:44:31 AM
 #9

but every time difficulty increases, the price go up

Then we have a bunch of stupid traders on our hands that can't look a few days into the future at a pre-scheduled event.

The price for the next difficulty increase is already baked into the current price, because everyone knows it's coming. This isn't to say that the price might not increase anyway, but it will be for different reasons. Honestly, the amount of bitcoins sold on Mt Gox that are freshly minted is only a tiny fraction. That tiny fraction getting a little smaller shouldn't have a big effect on prices. Price increases are mainly due to popularity increases, not difficulty increases. Demand is the driving factor. There are already 6,500,000 bitcoins out there. The 7,000 mined each day aren't that big a deal.

I trade bitcoin options at https://bitoption.org/ ... Join me.
I play poker at https://betco.in/ ... Join me.
Support the bitcoin economy, what do you do?
Tips: 1NfXhiTFEdKQTdLy49s6DYAP1K7MeFWyao
DamienBlack
Jr. Member
*
Offline Offline

Activity: 56


View Profile
June 15, 2011, 11:46:28 AM
 #10

This has been hashed many times. The relationship between difficulty and price is clearly very complex and and goes both ways. When the price hit $30, I went out and bought two new graphics card. So in that small case, the price helped push the difficulty up, not the other way around.

Still glad you made that purchase?  Especially since by the time you actually got the cards the price was far, far from $30 (assuming mail-ordered)!

I grabbed them at a store. They'll still pay themselves off, make a little profit, even if the prices never rise. I might have been able to make more by buying bitcoins when they bottomed out around $10, but it depends on the size of future difficulty increases.

I trade bitcoin options at https://bitoption.org/ ... Join me.
I play poker at https://betco.in/ ... Join me.
Support the bitcoin economy, what do you do?
Tips: 1NfXhiTFEdKQTdLy49s6DYAP1K7MeFWyao
saqwe
Full Member
***
Offline Offline

Activity: 224



View Profile WWW
June 15, 2011, 12:11:42 PM
 #11

but every time difficulty increases, the price go up

 Price increases are mainly due to popularity increases, not difficulty increases. Demand is the driving factor. There are already 6,500,000 bitcoins out there. The 7,000 mined each day aren't that big a deal.

I guess you have a point there.

Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!