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Author Topic: does mining cost affect btc price?  (Read 341 times)
GardenChristian
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March 25, 2018, 05:22:56 PM
 #41

there was a saying is that ,btc's price can not drop down bellow its mining cost.e.g,if btc's mining cost is 5000 $,btc cant drop bellow 5000 $,if the price is lower than 5000$ ,the mines could be paralysised ,so btc transacion cant work either.the statement sounds reasonable.to avoid this situation ,btc's price must be above its mining cost.
On other hand, the difficulty of mining btc is growing harder and harder ,if one day the mining cost goes up to the moon ,e.g, 100,000,000 $,would the price of btc  also go to that level of price?but the height of price cant be maintained that high,people would of course change their btc to fiat currency,so i think its quite contradictory to ballance btc price and the mining cost.what do you think of this paradox?
Yes, I think the cost of mining will affect the lowest price of bitcoin. When the lowest price of bitcoin is lower than the long cost of mining, the miners will stop working, which will affect the operation of the bitcoin network. So I don't think bitcoin will last much longer than the cost of mining.
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fetokun
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March 25, 2018, 06:00:24 PM
 #42

Theres no such thing. Suppose the price drops to $3k today then all the miners who aren't profitable will shut their miners down and this will cause the hash rate to drop and this drop will lower the bitcoin mining difficulty which in result will lower the cost to mine bitcoin. The miners will keep on shutting and the hash rate will keep on dropping until it reaches a point where its profitable to mine again.

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March 25, 2018, 06:10:22 PM
 #43

there was a saying is that ,btc's price can not drop down bellow its mining cost.e.g,if btc's mining cost is 5000 $,btc cant drop bellow 5000 $,if the price is lower than 5000$ ,the mines could be paralysised ,so btc transacion cant work either.the statement sounds reasonable.to avoid this situation ,btc's price must be above its mining cost.
On other hand, the difficulty of mining btc is growing harder and harder ,if one day the mining cost goes up to the moon ,e.g, 100,000,000 $,would the price of btc  also go to that level of price?but the height of price cant be maintained that high,people would of course change their btc to fiat currency,so i think its quite contradictory to ballance btc price and the mining cost.what do you think of this paradox?
Yes, I think the cost of mining will affect the lowest price of bitcoin. When the lowest price of bitcoin is lower than the long cost of mining, the miners will stop working, which will affect the operation of the bitcoin network. So I don't think bitcoin will last much longer than the cost of mining.
Media is a very strong tool for promoting something new in the society infact with the advent of the technology especially the internet it is very helpful for the information dissemination of bitcoin and other cryptocurrencies out their that are very helpful for the welfare of people and of the human development. With the help of social media outlets in the internet such as facebook, tweeter instagram and the likes bitcoin has a big chance to make people understand and open their eyes of how bitcoin can help them and everyone in the world.
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March 25, 2018, 06:15:56 PM
 #44

there was a saying is that ,btc's price can not drop down bellow its mining cost.e.g,if btc's mining cost is 5000 $,btc cant drop bellow 5000 $,if the price is lower than 5000$ ,the mines could be paralysised ,so btc transacion cant work either.the statement sounds reasonable.to avoid this situation ,btc's price must be above its mining cost.
On other hand, the difficulty of mining btc is growing harder and harder ,if one day the mining cost goes up to the moon ,e.g, 100,000,000 $,would the price of btc  also go to that level of price?but the height of price cant be maintained that high,people would of course change their btc to fiat currency,so i think its quite contradictory to ballance btc price and the mining cost.what do you think of this paradox?
It's beyond the calculations of the bitcoin creator and that puts pressure on the dev team of bitcoincore. I believe the future will have better bitcoin solutions. It is possible that the bitcoin is changed to a larger coin that has a larger number of tokens.

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April 01, 2018, 06:31:46 PM
 #45

However, the most important distinguishing feature of bitcoin is its decentralized nature. The treatment and release of bitcoins is not controlled by any institution.
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April 01, 2018, 06:35:50 PM
 #46

Miners selling coins to cover costs could affect the price of Bitcoin.
Mining costs could influence the transaction fees more than the price of Bitcoin imho.


Thats true but it is partly true about the selling affecting the prices of the bitcoin. I mean just imagine the number of miners who are immediate seller of the coins might be very less. If the big cartels do that then yeah off course its huge amount they might be dumping and thus making the major change on the market scale too.

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Mining costs could influence the transaction fees more than the price of Bitcoin imho.

Is this correct or is it exactly opposite to this one? I mean isn't it is when the prices of bitcoin increases a lot then the people start transacting heavily and thus increasing the load on miners. This in turn makes the miners to increase the fees heavily and the end result. I mean I am confused is it the way you say it or me?
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April 18, 2018, 05:48:00 PM
 #47

I don't actually agree with this one. though, mining increases the number of bitcoin a lot. Yet I think what really affects the price of bitcoin is really the matter of demand. It's a question of demand and supply. As long as we have demand for it the price is always gonna be high and could be low if there is correction or regulation.
jcmansah7
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April 19, 2018, 03:50:31 AM
 #48

Well, what I will say is that people tend to look at the dollar equivalent of bitcoin and think of mining dirsctly affecting mining but that isn't the real user case. The cost of mining is set to get faster transactions so anyone can choose whether low, medium or high. People compare the txn cost of eth with btc. Ask yourself that if eth and btc were of the same price, which of the two would have been charging higher?

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