4 million effective BTC's have been made by FTC/CNC = 17% drop of BTC

[powdabam]

You can't do anything about it so who cares?

Pokemon cards make my mtg cards worth less....oh well?

[drawingthesun]

I am too lazy to do this, but a much better comparison is to compare the hash rates of all the coins together. (remember to divide by 1000 to compare SHA and Scrypt rates)

Also for a bonus cookie compare the increase in alt coin hash rate the the hash rate of Bitcoin and see if there is evidence of people moving away from Bitcoin.

[erk]

I am too lazy to do this, but a much better comparison is to compare the hash rates of all the coins together. (remember to divide by 1000 to compare SHA and Scrypt rates)

Also for a bonus cookie compare the increase in alt coin hash rate the the hash rate of Bitcoin and see if there is evidence of people moving away from Bitcoin.

Hash rates are largely irrelevant because each coin eventually changes it's difficulty to maintain a constant creation rate regardless of the hash rate.

[chriswen]

I am too lazy to do this, but a much better comparison is to compare the hash rates of all the coins together. (remember to divide by 1000 to compare SHA and Scrypt rates)

Also for a bonus cookie compare the increase in alt coin hash rate the the hash rate of Bitcoin and see if there is evidence of people moving away from Bitcoin.

Hash rates are largely irrelevant because each coin eventually changes it's difficulty to maintain a constant creation rate regardless of the hash rate.

Hash rate represents energy destroyed.

A high hashrate also means you'll get less coins per hash.

[Surpbitcoin]

BTC was already 17% down when FTC shows up on BTCe, and the price double.
So no.

Bouyaa! 

[Impaler]

Indeed sun, its not this meaningless 'market capitalization' calculation people throw around, its all about the rates of new coin creation and their sale.  So you should compare the actual sale of alts in dollar value to the sale of new BTCs in dollar value.  Hypothetically their is a finite pool of people willing to put their dollars into any crypto-coin and they divide it between the available coin choices.  These people bid up or down the price of the new coins with virtually no regard for the preexisting coins and miners move around their hash power to arbitrage it.  

Now we also need to consider that these new alts are seeing incredibly small volumes of actual liquidation by their miners, just a handful of newly mined coins are determining the valuation of mountains of other coins that just go directly into the miners personal hoard.  BTC suffers from the same problem but to a lesser degree.  So look at coin volumes produced AND determine how many are actually flowing into exchanges then determine how much money is spent to purchase that flow.

Also the BTC decline over the last 2 days has been entirely caused by a DDoS on SilkRoads.

[jubalix]

Indeed sun, its not this meaningless 'market capitalization' calculation people throw around, its all about the rates of new coin creation and their sale.  So you should compare the actual sale of alts in dollar value to the sale of new BTCs in dollar value.  Hypothetically their is a finite pool of people willing to put their dollars into any crypto-coin and they divide it between the available coin choices.  These people bid up or down the price of the new coins with virtually no regard for the preexisting coins and miners move around their hash power to arbitrage it.  

Now we also need to consider that these new alts are seeing incredibly small volumes of actual liquidation by their miners, just a handful of newly mined coins are determining the valuation of mountains of other coins that just go directly into the miners personal hoard.  BTC suffers from the same problem but costs to a lesser degree.  So lot at coin volumes produced AND determine how many are actually flowing into exchanges then determine how much money is spent to purchase that flow.

Good analysis

[erk]

Indeed sun, its not this meaningless 'market capitalization' calculation people throw around, its all about the rates of new coin creation and their sale.  So you should compare the actual sale of alts in dollar value to the sale of new BTCs in dollar value.  Hypothetically their is a finite pool of people willing to put their dollars into any crypto-coin and they divide it between the available coin choices.  These people bid up or down the price of the new coins with virtually no regard for the preexisting coins and miners move around their hash power to arbitrage it.  

Now we also need to consider that these new alts are seeing incredibly small volumes of actual liquidation by their miners, just a handful of newly mined coins are determining the valuation of mountains of other coins that just go directly into the miners personal hoard.  BTC suffers from the same problem but to a lesser degree.  So look at coin volumes produced AND determine how many are actually flowing into exchanges then determine how much money is spent to purchase that flow.

Also the BTC decline over the last 2 days has been entirely caused by a DDoS on SilkRoads.

Except that people aren't putting dollars into these alt-coins, they are putting BTC into them.

[GSnak]

MTGox is far more detrimental to BTC than FTC.

[drawingthesun]

I am too lazy to do this, but a much better comparison is to compare the hash rates of all the coins together. (remember to divide by 1000 to compare SHA and Scrypt rates)

Also for a bonus cookie compare the increase in alt coin hash rate the the hash rate of Bitcoin and see if there is evidence of people moving away from Bitcoin.

Hash rates are largely irrelevant because each coin eventually changes it's difficulty to maintain a constant creation rate regardless of the hash rate.

I think you misunderstand why I am using the network hash rate as a metric.

I'm not talking about hash rates because of the amount of coins, but rather hash rates as a metric for user interest. If Feathercoin is at 10% of Litecoins hashing power, that means Feathercoin is being trusted more and more. Remember crypto-currencies are network effect based value systems with no "metal" or "government trust" to fall back on. So more people using a coin will give that coin more value.

In this regard network hash rate is very important. If Litecoin was at the same hashrate as Bitcoin (after doing the divide by 1000 conversion) then we would expect Litecoins to much more valuable.

So if someone wants to gauge the "network effect" of each coin, start comparing network hash rates.

As a stupid guess I would expect the following:

Litecoin to be 3-10% of Bitcoins total network hash rate.
Feathercoin to be 5 % of Litecoins hash rate.

These are just my guesses, I would like someone to tell me how wrong they are!

[drawingthesun]

MTGox is far more detrimental to BTC than FTC.

Yeah, FTC and CNC and even Litecoin are having no effect of Bitcoin's value.

Bitcoin is not being adopted as fast as a lot of speculators hoped for and now SR is being smashed with a DDOS, things are looking a little more bleak in the Bitcoin world.

I really don't think the alternatives are doing anything at all to the Bitcoin price.