How mining demand affects Bitcoin prices.

[nutschig]

It is often said there is no relation between mining and the value of Bitcoin.

I propose there is some overlap, due to the forces of miners themselves. Miners choose between investing in Bitcoin, or investing in mining. This unites the two in economics.

When Bitcoin:fiat is low, they buy Bitcoin. When Bitcoin:fiat is high, they buy into mining.

Hence, the difficulty of mining and the exchange rate of Bitcoin are somewhat related.

I make no claims about how strong this relationship is.


Thanks for hearing me out, what do you think?

[1715373307]

1715373307

[dani]

I agree though this logic won't apply to most miners. Many are immune to math etc. But i feel people are not so much willing to sell their coins for low anymore because they can't roi, which most miners want to achieve. So they will like to keep the higher prices instead of selling low because they now saw its no big deal to keep around the new price. We should see this again when difficulty goes mad again. And it sure will.

edit: sure there was some speculation into this last price race as well, we ran too high too fast, like last time, therefore another dip and a little rollercoast.

[the joint]

Those who think price only affects difficulty as a one way function are logically impaired.

[dani]

Those who think price only affects difficulty as a one way function are logically impaired.

Great contribution. Keep it up.

Nobody said one way connection anyway

[the joint]

Those who think price only affects difficulty as a one way function are logically impaired.

Great contribution. Keep it up.

Nobody said one way connection anyway

Correction:  dozens of people in (probably) dozens of threads have said that it's a one way function.  No need for the snide remark, it's a common misconception on this forum.

[dani]

Those who think price only affects difficulty as a one way function are logically impaired.

Great contribution. Keep it up.

Nobody said one way connection anyway

Correction:  dozens of people in (probably) dozens of threads have said that it's a one way function.  No need for the snide remark, it's a common misconception on this forum.

I apologizie, I didn't know  . I don't bother much with mining speculation anyway, so I don't read the other threads. So yes, people who think this is a one way connection are pretty much retarded, like people not able to do the math.