Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

[BitofaN1]

It just occurred to me that @$456, assuming miners are on average selling all their coins, the market has to absorb $1.6 million in sales just to stay at the same price.  You gotta wonder how long bulls can keep that up, considering we're going to run out of room in blocks in the next couple of months at this rate.

The market can be irrational way longer than your shorts can. That on top that the market does not seem to be overheated at the moment.

Anyone here thinks there is a strong correlation between the huge increase in hash rate and the actual price of BTC?
I mean all that mining hardware has to ROI as fast as possible so that miners can see some nice profits.Look at the hash rate graph: https://blockchain.info/charts/hash-rate  
Hash rate jumped from 510mil GH/s  to 770mil GH/s in less than a month.
Now here comes the speculation bit and I could be well off here, but: We all know Chinese miners work close together with Chinese exchanges, maybe too close, if you get what I'm saying.Couldn't they artificially pump up the price so all that mining hardware that must have cost fortunes,
can pay for itself as soon as possible? I'm not saying demand for BTC didn't increase also, but did it almost double in 60 days like the hash rate or the price did? I find that hard to believe.I also think that doubling of the BTC price and maintaining it at that level is a trivial task for China's bitcoin industry.  
Long story short, I think China is way too invested in Bitcoin and is going to try and sell it to the rest of the world, for as high as possible for as long as possible from now on.That's why shorting bitcoin right now seems like a bad idea to me.    

[fisheater22]

Couldn't they artificially pump up the price so all that mining hardware that must have cost fortunes,
can pay for itself as soon as possible?

If they could, why didn't they do it before their hardware became unprofitable, to simply boost their profits?
And why would anyone invest in a virtual asset which could be so easily manipulated?

[Karpeles]

When will we start to skyrocket again?

[jbreher]

Hash rate jumped from 510mil GH/s  to 770mil GH/s in less than a month.

ASICs at the next smaller process node have just become available. For miners, this requires a response to either pony up for the new more efficient equipment, or start your exit from the mining game. As long as the older gear is still revenue positive, it will stay in service. Given the rate of adoption of the new generation, this may not be very long.

IOW, this hash rate boost is driven by chip geometries, and does not require collusion with exchanges to be beneficial for the miners.

[GreekGeek]

When will we start to skyrocket again?

The way I see it :      soon

[Auxi]

When will we start to skyrocket again?

2016

[ChartBuddy]

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Explanation

[billyjoeallen]

When will we start to skyrocket again?

I don't know, Newbie. As soon as you start buying, I guess. All I know is that if we don't get a new ATH or a scaling solution by the time of the halving, I'm dumping my cold storage coins.

[GreekGeek]

When will we start to skyrocket again?

I don't know, Newbie. As soon as you start buying, I guess. All I know is that if we don't get a new ATH or a scaling solution by the time of the halving, I'm dumping my cold storage coins.

Shh  don't scare  the newbies man!!!!
What's wrong with you?

[billyjoeallen]

When will we start to skyrocket again?

I don't know, Newbie. As soon as you start buying, I guess. All I know is that if we don't get a new ATH or a scaling solution by the time of the halving, I'm dumping my cold storage coins.

Shh  don't scare  the newbies man!!!!
What's wrong with you?

My bad. BUY BUY BUY!!!!

[podyx]

When will we start to skyrocket again?

I don't know, Newbie. As soon as you start buying, I guess. All I know is that if we don't get a new ATH or a scaling solution by the time of the halving, I'm dumping my cold storage coins.

All of them??

[billyjoeallen]

When will we start to skyrocket again?

I don't know, Newbie. As soon as you start buying, I guess. All I know is that if we don't get a new ATH or a scaling solution by the time of the halving, I'm dumping my cold storage coins.

All of them??

Probably. at least 90%. If it don't scale, they're on sale.

[podyx]

When will we start to skyrocket again?

I don't know, Newbie. As soon as you start buying, I guess. All I know is that if we don't get a new ATH or a scaling solution by the time of the halving, I'm dumping my cold storage coins.

All of them??

Probably. at least 90%. If it don't scale, they're on sale.

Wow, you seem really afraid of it. How come it wasn't anything you feared before? Not aware of it?
You know conflict about the issue is a good thing. If everyone would be quiet about it, it'd be much worse.

[BitofaN1]

Couldn't they artificially pump up the price so all that mining hardware that must have cost fortunes,
can pay for itself as soon as possible?

If they could, why didn't they do it before their hardware became unprofitable, to simply boost their profits?
And why would anyone invest in a virtual asset which could be so easily manipulated?

Because the mining gear that accounts for the 220 mil GH/s network hash rate increase, came online only recently. Probably early
november.That investment needs to brake even fast. There is clearly demand out there, even at these prices but not to sustain it with out China's "help".
As for the second question: Only invest what you can afford to lose.Personally, I think China's greed will bring the death of bitcoin, unless we  magically get audited and regulated Chinese Bitcoin exchanges somehow without crashing the entire BTC economy.

[billyjoeallen]

When will we start to skyrocket again?

I don't know, Newbie. As soon as you start buying, I guess. All I know is that if we don't get a new ATH or a scaling solution by the time of the halving, I'm dumping my cold storage coins.

All of them??

Probably. at least 90%. If it don't scale, they're on sale.

Wow, you seem really afraid of it. How come it wasn't anything you feared before? Not aware of it?
You know conflict about the issue is a good thing. If everyone would be quiet about it, it'd be much worse.

Probably. Maybe that's why we crashed so low in the first place. People were trading on the information before I and most everyone else knew about it. And it's very possible that we could go a lot higher before the issue actually affects network performance, but eventually it will.  and then god help anyone caught long. 

[Paashaas]

Check out this pic, a great view how small Bitcoin is if you compare it with worlds money&markets.

That derivatives market

http://money.visualcapitalist.com/all-of-the-worlds-money-and-markets-in-one-visualization/

[fisheater22]

Couldn't they artificially pump up the price so all that mining hardware that must have cost fortunes,
can pay for itself as soon as possible?

If they could, why didn't they do it before their hardware became unprofitable, to simply boost their profits?
And why would anyone invest in a virtual asset which could be so easily manipulated?

Because the mining gear that accounts for the 220 mil GH/s network hash rate increase, came online only recently. Probably early
november.That investment needs to brake even fast. There is clearly demand out there, even at these prices but not to sustain it with out China's "help".

So what you're saying is until now, miners could afford to make less money, but now that they're stuck with all the new HW, they have to get serious? Is that the gist of it, or am I missing something?
Chinese exchanges are in business to make money. Miners going broke doesn't add any new tools to the exchanges' manipulation arsenal. If they could manipulate the price, they're already doing it.

[AlexGR]

Check out this pic, a great view how small Bitcoin is if you compare it with worlds money&markets.

That derivatives market

http://money.visualcapitalist.com/all-of-the-worlds-money-and-markets-in-one-visualization/

Silver is clearly off.

1 billion oz isn't the world's above ground supply, it's closer to the annual supply

Typical production of gold is 80-90mn oz per year, silver ~800mn oz.

[spooderman]

everybody ready for bitcoin's largest ever increase in difficulty?

[ChartBuddy]

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