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

[FNG]

Hash rate continues to go mental    eom

[omgbossis21]

Price continues to drop and hold its going to be a interesting ride watching the hashrate decline. 

[findftp]

Hash rate continues to go mental    eom

Why? I don't see any strange things

https://bitcoinwisdom.com/bitcoin/difficulty
https://blockchain.info/nl/charts/hash-rate

[ChartBuddy]

Explanation

[FNG]

Hash rate continues to go mental    eom

Why? I don't see any strange things

https://bitcoinwisdom.com/bitcoin/difficulty
https://blockchain.info/nl/charts/hash-rate

The over 20% increase in a day. Or put it another way.. In 1 day the hash rate increased more than twice the entire hash rate at the beginning of this year.

[findftp]

Hash rate continues to go mental    eom

Why? I don't see any strange things

https://bitcoinwisdom.com/bitcoin/difficulty
https://blockchain.info/nl/charts/hash-rate

The over 20% increase in a day. Or put it another way.. In 1 day the hash rate increased more than twice the entire hash rate at the beginning of this year.

Yeah I know, but it's not right saying that behaviour is strange since it's going on for a long time already.
I like to say the network is doubling every two months.
I would start to worry when this behaviour significantly changes.

[HarHarHar9965]

Price continues to drop and hold its going to be a interesting ride watching the hashrate decline. 

I hadn't even thought about that. In the scope of things (from this point), we could be in for more downside only in the short term. I still think mid term reversal is possible. If $500s are gone for good, yes, you are right. It will be a ride, alright....

[omgbossis21]

Id have think with more acceptance comes more dumping.  I know a lot of people continue to buy more hardware but im not sure how much longer the new hardware will outweigh the hardware getting shut off.  With declining price, more acceptance (and with it more dumping) and the mining hardware seemingly near caught up with technology, I wonder where we go. 

[Adrian-x]

Hash rate continues to go mental    eom

Why? I don't see any strange things

https://bitcoinwisdom.com/bitcoin/difficulty
https://blockchain.info/nl/charts/hash-rate

The over 20% increase in a day. Or put it another way.. In 1 day the hash rate increased more than twice the entire hash rate at the beginning of this year.

It is crazy, we could be in for another 2011 down trend like we saw after the invention of GPU mining.

Around the last block halving $500 bought you 600 MH/s today it gets you 3,000,000 MH/s.

It just so happens that AsicMiner started shipping 8 TH/s @ 10 BTC just over a week ago they started hitting the the mass consumer market. And wouldn't you know it but as of today 8TH/s now costs Under 8 BTC, and you can expect that trend to go on quite a bit until the cost to mine is close to the cost of electricity.

It's going to look odd on that difficulty chart for sure, and given available resources ie. Total surpluses energy supply, it would be quite practical for the price to fall, to prevent a mining explosion.

Unfortunately disruption isn't always practical.

In my view it's safe to buy Bitcoin while the difficulty is increasing and the price is falling.
It's when difficulty and price stars falling together that you need balls.

[JorgeStolfi]

Hash rate continues to go mental    eom

The protocol gives out ~3600 BTC daily to miners, no matter what bitcoin is doing.

Each miner gets, from that amount, a slice proportional to his hashing power.

Hence every miner will try to get as much hashing power it can, as long its cost is less than what it earns.

Those with the most efficient equipment (or who steal equipment, or steal electricity) can reinvest more and grow faster.

Hence the hashrate will keep increasing nonstop.

So what?

[grappa_barricata]

Hash rate continues to go mental    eom

The protocol gives out ~3600 BTC daily to miners, no matter what bitcoin is doing.

Each miner gets, from that amount, a slice proportional to his hashing power.

Hence every miner will try to get as much hashing power it can, as long its cost is less than what it earns.

Those with the most efficient equipment (or who steal equipment, or steal electricity) can reinvest more and grow faster.

Hence the hashrate will keep increasing nonstop.

So what?

The point was that at these bitcoin price levels mining is impractical.

[falllling]

some people are right now talking about "wouldn't mind a few months of a $200 bitcoin"

are you also ready for that?

[JorgeStolfi]

GABI is shorting bitcoin with their $200 million dollars?

People are misreading the news and getting all sorts of fantasies about GABI.

Read carefully. What they said is Jersey is going to sell 200 million BTC to GABI who will give them out free to all Bitstamp traders who wear a red "KEEP CALM" T-shirt and buy some weed from Newegg, starting September 1st.

Well, OK, that is not what the news said either... but who cares about the truth in this community? 

[JorgeStolfi]

Wrong. The hashrate has decreased in the past ... if you cared to take a look and can read a plot.

I saw it stagnate at the last reward halving, maybe I did not look far back enough?

[thefunkybits]

Fully prepared to see $400 this week, but it looks like we could be hitting support here at 470-ish

Either way i'm happy  

[grappa_barricata]

Wrong. The hashrate has decreased in the past ... if you cared to take a look and can read a plot.

I saw it stagnate at the last reward halving, maybe I did not look far back enough?

It self-regulate. If mining is unprofitable people stop mining, hash rate drop and mining became profitable again. If prices remain at these levels hash rate MUST drop, unless vast majority of hash power is controlled by entities that have no economic interests in mining per se.

[ChartBuddy]

Explanation

[esse83]

http://www.bloomberg.com/news/2014-08-31/apple-said-to-team-with-visa-mastercard-on-iphone-wallet.html

Wonder if there will be any reaction in the price to this news if true. We will know september 9th.

[Davyd05]

Can't wait to hear what really happened at btc-e...hacked api of a trader, bad programming whatever it was, will make for an epic story lol.

I'd be more worried if it was android and visa.

[Teppino]

Are we sure them at GABI weren't talking about 200M Satoshis?