Bitcoin Forum
September 23, 2021, 05:19:02 PM *
News: Latest Bitcoin Core release: 22.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Why doesn't BTC price eventually rise with mining difficulty  (Read 438 times)
Captimiz
Full Member
***
Offline Offline

Activity: 130
Merit: 100


Hoqu.io – Decentralized Affiliate platform


View Profile
March 18, 2017, 08:38:55 PM
 #1

Which it should, as its mining which helps add more bitcoins to the market.

1632417542
Hero Member
*
Offline Offline

Posts: 1632417542

View Profile Personal Message (Offline)

Ignore
1632417542
Reply with quote  #2

1632417542
Report to moderator
1632417542
Hero Member
*
Offline Offline

Posts: 1632417542

View Profile Personal Message (Offline)

Ignore
1632417542
Reply with quote  #2

1632417542
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1632417542
Hero Member
*
Offline Offline

Posts: 1632417542

View Profile Personal Message (Offline)

Ignore
1632417542
Reply with quote  #2

1632417542
Report to moderator
1632417542
Hero Member
*
Offline Offline

Posts: 1632417542

View Profile Personal Message (Offline)

Ignore
1632417542
Reply with quote  #2

1632417542
Report to moderator
1632417542
Hero Member
*
Offline Offline

Posts: 1632417542

View Profile Personal Message (Offline)

Ignore
1632417542
Reply with quote  #2

1632417542
Report to moderator
STT
Legendary
*
Offline Offline

Activity: 2954
Merit: 1286


Crypto Casino & Sportsbook


View Profile WWW
March 18, 2017, 08:50:26 PM
Last edit: March 18, 2017, 09:29:13 PM by STT
 #2

Price is free market.   The cost of any commodity can fall below its available free market price, the force to determine a correct level is with the market not with the miners difficulty which is why difficulty is adjustable I think.   Its very normal for operations to become unprofitable unfortunately, thats really a task for bitcoin to negotiate


██████████████████████████████████████████████████████████████████████
████████▀▀▀        ▀▀█████████████████████████████████████████████████
██████▀    ▄▄▄▄▄▄▄▄    ███████████████████████████████████████████████
█████    ▄█████████▌   ▐█████▀  ▐███████████████▌  ▀██████████████████
████▌   ▐██████████    █████    ████████████████    ██████████████████
████▌   ▐█████████▄▄▄▄█████▌   ▐███████████████▌   ▐███▀▀█████████████
█████    ▀███████████████▀▀        ▄███████████    ██▀   ▐████████████
██████▄     ▀▀███████▀▀         ▄▄███▀▀▀▀█████▌   ▐▀   ▄███▀▀   ▀█████
█████████▄▄     ▀▀███▄  ▄▄    ████▀    ▄   ███       ▄███▀   ▄█  ▐████
█████████████▄▄     ▀████▌   ▐███▀   ███   ██▌      ████    ██▀  █████
██████▀▀   ▀█████▄    ███    ████   ███▌  ▐██    ▌  ▐██▌      ▄▄██████
█████    ▄████████    ▐██    ██▀▀   ██▀   ▐▀    ▐█   ██▌   ▀██▀▀  ████
████▌   ▐████████▀    ███▄     ▄▄▄     ▄    ▄   ▐██   ██▄      ▄▄█████
████▌   ███████▀    ▄███████████████████████████████▄  ▀▀██████▀▀ ████
█████    ▀▀▀▀     ▄█████████▀    ▀█▀    ▀█       ▀████▄▄         ▄████
██████▄▄    ▄▄▄▄████████████  █████  ██  █  █  █  ████████████████████
█████████████████████████  █▄    ▄█▄    ▄█  █  █  ████████████████████
██████████████████████████████████████████████████████████████████████
▄▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▄
█  ▄▀▄             █▀▀▐▀▄▄
█  █▀█             █  ▐  ▐▌
█       ▄██▄       █  ▌  █
█     ▄██████▄     █  ▌ ▐▌
█    ██████████    █ ▐  █
█   ▐██████████▌   █ ▐ ▐▌
█    ▀▀██████▀▀    █ ▌ █
█     ▄▄▄██▄▄▄     █ ▌▐▌
█                  █▐ █
█                  █▐▐▌
█                  █▐█
▀▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▀█
▄▄█████████▄▄
▄█▀▀▀█████████▀▀▀█▄
▄█▀    ▄▀█████▀     ▀█▄
▄█▄    █        ▀▄   ███▄
▄████▀▀▀▀▄       ▄▀▀▀▀▀███▄
████      ▀▄▄▄▄▄▀       ███
███     ▄▄███████▄▄     ▄▀█
█  ▀▄ ▄▀ ▀███████▀ ▀▄ ▄▀  █
▀█   █     ▀███▀     ▀▄  █▀
▀█▄▄█▄      █        █▄█▀
▀█████▄ ▄▀▀ ▀▀▄▄ ▄▄███▀
▀█████        ████▀
▀▀█▄▄▄▄▄▄▄█▀▀
● OVER 1000 GAMES
● DAILY RACES AND BONUSES
● 24/7 LIVE SUPPORT
-ck
Legendary
*
Offline Offline

Activity: 3388
Merit: 1356


Ruu \o/


View Profile WWW
March 18, 2017, 08:58:00 PM
 #3

Which it should, as its mining which helps add more bitcoins to the market.
Mining adds a fixed amount of bitcoin regardless of the amount of mining hardware thrown at it and the difficulty so difficulty and total hashrate is almost completely dissociated from the amount of bitcoin generated (it can only transiently affect it for up to 2 weeks but then the network balances out.) Additionally the perceived value of bitcoin is related to its perceived economic utility, affected by trade of/with bitcoin, and this has absolutely nothing to do with the mining process itself. The only relationships between mining and the value of bitcoin are indirect, related to the fact that miners tend also to be traders of bitcoin, and investors of money into mining hardware/entities/securities trade with bitcoin to do so. Confidence in bitcoin can be affected by the existence of miners/mining hardware/hashrate/investors into mining hardware, but again this relationship is only indirect.

Developer/maintainer for cgminer, ckpool/ckproxy, and the -ck kernel
2% Fee Solo mining at solo.ckpool.org
-ck
jonald_fyookball
Legendary
*
Offline Offline

Activity: 1302
Merit: 1002


Core dev leaves me neg feedback #abuse #political


View Profile
March 18, 2017, 09:29:52 PM
 #4

Which it should, as its mining which helps add more bitcoins to the market.

Well, it does correlate but you have the causality reversed.

Supply and demand control the price.  Miners compete to stay in the game given those parameters. (and the mining difficulty
is a consequence of that.)

Yakamoto
Legendary
*
Offline Offline

Activity: 1218
Merit: 1007


View Profile
March 18, 2017, 09:34:28 PM
 #5

Which it should, as its mining which helps add more bitcoins to the market.
It does.

Inefficient miners get forced out while the miners with the lowest bottom line continue to survive and make money. That's how it works. It trades equality for efficiency.

Investors and speculators, along with everyone else, dictate the value most of the time. Miners adjust or sell it for what they can at the absolute minimum to keep themselves alive, and if they get it sold, they continue onwards. If it fails to sell, they fall off, difficulty falls are miners get turned off, now it becomes cheaper to mine.

It all works, technically.
erpbridge
Legendary
*
Offline Offline

Activity: 954
Merit: 1000


View Profile
March 18, 2017, 11:39:30 PM
 #6

Which it should, as its mining which helps add more bitcoins to the market.
It certainly does. That is one of the reasons that the price didn't drop below 500 this time. If the price dips below 500, then the miners can't profit by running their gigs. Price will always rise when the mining reward halves and difficulty increases.
Hydrogen
Legendary
*
Online Online

Activity: 1932
Merit: 1035



View Profile
March 18, 2017, 11:54:46 PM
 #7

How bitcoin is traded on exchanges hs the biggest impact on price.

News stories have the biggest impact on how crypto is traded on exchanges.

Mining difficulty isn't something that factors into the price of btc much.

Bitcoin traded on exchanges is a double edged sword.

On one hand it allows the price of bitcoin to go from $15 to $1,000 within the span of 5 years or so.

On the other hand, in times of uncertainty like the current doubt & fear with forks, the price can also decline.

bncbnc
Hero Member
*****
Offline Offline

Activity: 840
Merit: 500



View Profile
March 19, 2017, 06:51:10 AM
 #8

Which it should, as its mining which helps add more bitcoins to the market.
It certainly does. That is one of the reasons that the price didn't drop below 500 this time. If the price dips below 500, then the miners can't profit by running their gigs. Price will always rise when the mining reward halves and difficulty increases.
i do not think that the price of bitcoin is going to fell down below 1000 USD . i think it will stay here for a very little time and hoe that very soon its price will increase again and again.

▄▄▄▄
▐████▌
▀██▀
▐▌
▄██▄
▄▄▄▄ ▐████▌ ▄▄▄▄
▐████▌ ▀▀▀▀ ▐████▌
████  ▄▄▄▄  ████
▐████▌
▄▄▄▄        ▄▄▄▄  ▀██▀  ▄▄▄▄        ▄▄▄▄
▐████▌      ▐████▌  ▐▌  ▐████▌      ▐████▌
▀██▀  ▄▄▄▄  ▀██▀  ▄██▄  ▀██▀  ▄▄▄▄  ▀██▀
▐▌  ▐████▌  ▐▌  ▐████▌  ▐▌  ▐████▌  ▐▌
▄██▄  ▀██▀  ▄██▄  ▀██▀  ▄██▄  ▀██▀  ▄██▄
▐████▌  ▐▌  ▐████▌  ▐▌  ▐████▌  ▐▌  ▐████▌
▀▀▀▀  ▄██▄  ▀▀▀▀  ▄██▄  ▀▀▀▀  ▄██▄  ▀▀▀▀
▐████▌      ▐████▌      ▐████▌
▀▀▀▀  ████  ▀▀▀▀  ████  ▀▀▀▀
▐████▌      ▐████▌
▀▀▀▀        ▀▀▀▀
ivy|..FACILITATING SECURE, TRANSPARENT...........
..
BUSINESS PAYMENTS ON A GLOBAL SCALE....

..─────────  ❱❱  WHITEPAPER  ❰❰  ─────────..
|
▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
|.JOIN US NOW!.|
ImHash
Hero Member
*****
Offline Offline

Activity: 910
Merit: 506


View Profile
March 19, 2017, 07:11:13 AM
 #9

Actually mining difficulty should have much greater impact on price other than the already psychological impact that it has on determining the market price. if you are buying 1 bitcoin for $1000 then tell me if you can mine 1 bitcoin investing in mining? people often compare things like scarcity and supply and the amount of work required to obtain something and if you can easily obtain bitcoin all by yourself without the need for large investment in mining field then others would never pay $1000 for the coin that you mined by spending $100 or $200.

Tell me how many TH per second is needed to mine 1BTC and the average electricity cost of it?
In my opinion bitcoin is very much cheap and the real price is not yet in sight.
Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!