Might seem counter-intuitive but it is mining difficulty that drives price not the other way around.
How on earth did you come to such an erroneous conclusion? That makes zero sense.
Makes sense to me.
Mining ⛏ difficulty is the backbone of btc.
That does not mean that the BTC price follows mining or mining difficulties. You can wish that hashrate leads all that you like, but makes hardly any sense and it's going to lead you to the wrong conclusions on a variety of occasions if you continue to believe such crazy detached concepts and especially if you make your BTC allocation or reallocation decisions based on such a lagging indicator.. and/or fail/refuse to account for indicators that are likely more predictive of BTC price dynamics such as stock to flow, 4 year fractal and exponential s-curve adoption based on metcalfe principles and network effects (mining is one of the 7 or so network effects, so ONLY one of the network effects factors)
For sure there are some good aspects in terms of monitoring the presence, role and incentives of mining, especially if you are in the business of mining... and figuring out the extent that mining might be profitable or not or more profitable than buying bitcoin directly without getting involved in mining.
btc is created by converting energy to coin.
more difficulty means more power is needed to mine a coin.
thus the base value of a coin is determined by power needed to mine it.
base cost of a coin should help miners to determine whether they are going to mine or not mine.... including help them to decide the extent to which they will expand or shrink operations or attempt to make their operations more efficient in order to attempt to be profitable.
He is making perfect sense.
Does not make sense to me.
Any one that does not agree simply should go for pos coins and leave this thread 🧵
Yes.. you are coming off as quasi-delusional, argumentative for the sake of it and spouting out bullshit and hardly tied to reality proclamations.. including your attempt to make a nonsense framework that either BTC price is lead by hashrate or otherwise anyone who does not agree with that way of thinking about the matter then believes in POS... nonsense..
Actually in some sense, people who buy bitcoin or even support bitcoin might not even need to know the technical background of bitcoin, or the difference between bitcoin and other coins in order to participate in this thread and to develop some rationale for their own decisions to allocate or partially allocate some of their value into bitcoin.
You are showing your own ignorance and leading into arrogance with those kinds of lacking in insight claims, especially worse when you try to proclaim that you understand bitcoin by asserting that you are a miner who supports and supposedly understands POW.. also probably have to question even if you understand POW if you are trying to assert that it means that miners are in control and leading the price blah blah blah.
how is that for fighting words.
Now I stand by that.
Yes.. stand behind bullshit frameworks (and show your ignorance).. that makes a lot of sense and makes you look real good...
It's a bit ironic that you have been in bitcoin for more than 10 years, but only recently you realized that it might be good to hold some coins, and now all of a sudden you are an expert on bitcoin because you had learned how to mine and spend bitcoin.. more than 10 years ago, but you only recently learned that HODLing coins was something that might be a good thing, in case bitcoin were to catch on...
Surely seems to be some strange claims that you are making... even questioning your past judgements and experiences, and then all of a sudden you are an expert about what kinds of beliefs qualify members to participate in this thread, too?.
edit if you don't it means you don’t belong here as a btc person or a pow person or a satoshi person
Fuck off with that nonsense... .
second edit ✍️ it is okay if you don’t believe in the POW 💥 concept that satoshi coined when he first set btc into motion.
But the whole idea is energy is used to create wealth.
POW
not POS
You are repeating yourself, and also you seem to not even understand what kinds of frameworks you are creating or the trade offs between supporting bitcoin versus a shitcoin, participating in this thread or participating in bitcoin... .. and yeah.. you are giving permission for us to not understand even when we have to question your understanding.. and your supposedly being smarter than everyone else.
It should be pretty clear that quite a few longer-term bitcoiners have learned that bitcoin brought POW to the space, and so bitcoin is differentiated from a lot of coins by both its paradigm invention and application of POW including difficulty adjustments every 2016 blocks, and at the same that network effects including mining and other networking effects have grown around it... so you surely were creating some kind of false dichotomy when you are proclaiming that miners are leading bitcoin's price blah blah blah.. and that true believers in bitcoin need to sufficiently understand the power of mining, which surely any of us should be able to understand that mining is powerful, but also understand that a variety of factors - besides mining contributes towards BTC's price dynamics..
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