Why is the hashrate going up while price going down

[Miner159]

Hi gents,

So question in the subject. Is it miners loading up on cheap gear, or maybe new asic's are manufactured, but not yet available for public, and the companies are just mining it off?

Cheers.

[mgoz]

Probably a combination of both. For many, mining is still profitable until price goes below $6k. Even then, many will probably still mine at a loss believing the price will go up. There are numerous 20-30+ TH/s ASICs available now or coming out in the next several months. Who knows if any manufacturers are also mining with them or not.

[fanatic26_]

Mining and hodling bitcoin is a long game, only the uninformed and ignorant panic at every dip. When you are in the business of mining, you dont just shut your machine off because you dont like that the profit is low, thats a sure fire way to go out of business. You have to ride the highs and lows to be successful

[Miner159]

fantastic26_, i understand that people wont turn off their devices, but that doesnt explain huge hashrate increase, you would expect it to stay the same.

[sidehack]

And for those of us more in the bitcoin marketplace than mining - that is to say, the people who use bitcoins as a means of exchange for goods and services (you know, a currency) rather than an investment platform or whatever, the volatility and price dips absolutely suck. If bitcoin had no utility it would have no value, but the speculators driving the swings looking for short-term profits are crippling its utility.

[fanatic26_]

fantastic26_, i understand that people wont turn off their devices, but that doesnt explain huge hashrate increase, you would expect it to stay the same.

No you wouldnt, not at all.

Again this is a long game and the vast majority of hash rate is controlled by mining farms these days. We do not stop expanding just because of a few bumps in the road. The price literally has nothing to do with expansion or putting more miners online when it comes to running a business.

I really think you are just not looking at it through the right lens, you are looking at day to day profit which might matter to someone at home running 2-3 miners, but the larger players just arent worried about it.

[rifleman74]

fantastic26_, i understand that people wont turn off their devices, but that doesnt explain huge hashrate increase, you would expect it to stay the same.

new machines are mining already.