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Author Topic: Bitcoin price vs. hash rate?  (Read 11766 times)
ElOmmy
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March 30, 2014, 05:16:15 PM
 #1

Hi all,
Given the recent flurry of posts on how bitcoin's value will keep on dropping, how does one think about the ever-increasing bitcoin hash rate?
http://blockchain.info/charts/hash-rate
http://blockchain.info/charts/hash-rate?timespan=60days&showDataPoints=true&daysAverageString=1&show_header=true&scale=0&address=

Looks like miners, the core backers and long-term investors in bitcoin, still have plenty of optimism left? And the current market is just speculators' short-term panic?

-ElOmmy
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roslinpl
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March 30, 2014, 06:17:10 PM
 #2

As we know it has some connections but hash rate is growing and growing Smiley

About price we cannot say the same. But - it is growing according to the price from a last year.

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Erdogan
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March 30, 2014, 10:59:51 PM
 #3

The cost of mining follows the bitcoin price. Hashrate per cost unit increases due to better equipment. Then there is a time lag to produce equipment. Then there is speculative errors on the hand of the miners.

durrrr
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April 01, 2014, 12:09:42 AM
 #4

i have always wondered what happens to bitcoin when everyone stops mining because its not worth it and the hash is to difficult? will bitcoin die then?

TwinWinNerD
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April 01, 2014, 01:19:32 AM
 #5

The thing is that most people that just now setup their mining machines bought them in the biggest upswing ever. Now that they received them, they barely cover the electricity cost but what else would they do with it?

aminorex
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April 01, 2014, 05:03:17 AM
 #6

The thing is that most people that just now setup their mining machines bought them in the biggest upswing ever. Now that they received them, they barely cover the electricity cost but what else would they do with it?

They will hoard their coins until  they are well paid for them.

Give a man a fish and he eats for a day.  Give a man a Poisson distribution and he eats at random times independent of one another, at a constant known rate.
Swordsoffreedom
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April 01, 2014, 05:10:49 AM
 #7

The thing is that most people that just now setup their mining machines bought them in the biggest upswing ever. Now that they received them, they barely cover the electricity cost but what else would they do with it?

They will hoard their coins until  they are well paid for them.

Time tells no lies after all either they break even or they just keep running until it just becomes way to costly to do so even with giant price increases
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April 01, 2014, 06:52:37 AM
 #8

i have always wondered what happens to bitcoin when everyone stops mining because its not worth it and the hash is to difficult? will bitcoin die then?
the hashrate will drop significantly because only a few ppl mining it
and transaction confirmation i slooooww

No, I will not disclose my real name on the Internet. The very simple reason I’m anonymous is so that I can talk freely about a free web. One mistake people often make is having the faulty assumption that knowing my real name or my association with a respected person, group or organization might get them to trust me more. In fact, I have no authority here. Elastic Project is a loosely associated group of developers which constantly changes over time. If you prefer projects with a more centralized structure, then please move on. Specifically, I kindly ask you to refrain from any messages that try to convince me of the contrary. My time is too valuable to be wasted with the same discussion again and again.
Erdogan
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April 01, 2014, 09:01:05 AM
 #9

i have always wondered what happens to bitcoin when everyone stops mining because its not worth it and the hash is to difficult? will bitcoin die then?
the hashrate will drop significantly because only a few ppl mining it
and transaction confirmation i slooooww


And the remaining miners' profit goes up. So no, it will not die.


roslinpl
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April 01, 2014, 04:26:26 PM
 #10

i have always wondered what happens to bitcoin when everyone stops mining because its not worth it and the hash is to difficult? will bitcoin die then?
the hashrate will drop significantly because only a few ppl mining it
and transaction confirmation i slooooww



Wll this is like impossible Smiley
This will NEVER happen Smiley you can only speculate.

But if all miners switch off -- there is NO coin. NO transaction. NO confirmation. Smiley

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bobdutica
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April 01, 2014, 04:44:43 PM
 #11

i have always wondered what happens to bitcoin when everyone stops mining because its not worth it and the hash is to difficult? will bitcoin die then?
The Bitcoin specification provides that if the mining becomes too difficult, and the time for confirmations gets too long, the difficulty is adjusted to become easier so that the average confirmation time will remain at 10 minutes.
hungpham
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April 02, 2014, 01:41:01 PM
 #12

btc will die if no one use it
top10merchant
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April 02, 2014, 08:52:20 PM
 #13

btc price falling down but hash rate raise up ...  Huh
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April 02, 2014, 09:09:25 PM
 #14

Higher difficulty -> higher each BTC cost of production -> higher BTC/USD price.
Therefore if the difficulty will continue rising, the price will catch up almost certainly!
Erdogan
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April 02, 2014, 09:33:04 PM
 #15

Higher difficulty -> higher each BTC cost of production -> higher BTC/USD price.
Therefore if the difficulty will continue rising, the price will catch up almost certainly!

Higher price of bitcoins -> more profitable to mine -> more mining -> higher difficulty.

Don007
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April 02, 2014, 09:37:19 PM
 #16

Higher difficulty -> higher each BTC cost of production -> higher BTC/USD price.
Therefore if the difficulty will continue rising, the price will catch up almost certainly!

Higher price of bitcoins -> more profitable to mine -> more mining -> higher difficulty.

Agree. And then it goes back around from higher difficulty > higher price I guess.

Maybe if the developers of mining gear don't follow up, we will reach a point where mining isn't profitable anymore (regarding to the energy costs it take), and then it will stay at a stable level.
But this won't be the fact of the developers keep developing more efficient gear.

<< Curently quite inactive as I'm really busy in my private life. I will get back soon! >>
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roslinpl
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April 02, 2014, 10:03:18 PM
 #17

Higher difficulty -> higher each BTC cost of production -> higher BTC/USD price.
Therefore if the difficulty will continue rising, the price will catch up almost certainly!

Higher price of bitcoins -> more profitable to mine -> more mining -> higher difficulty.

That's how this works.
I remember when BTC price hits the record in 2013 Smiley wow so many new miners come in few weeks Cheesy
So many new Bitcoin users Smiley


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Don007
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April 02, 2014, 10:09:19 PM
 #18

So, according to that we will hit the 2000$ this year?

Let's see if this is going to happen. I would love to Smiley. But not yet, yet I keep trading my fiat for more BTC Smiley.

Edit; this post was in reaction to a post which just dissapeared with a graph.

<< Curently quite inactive as I'm really busy in my private life. I will get back soon! >>
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April 02, 2014, 10:23:37 PM
 #19

There seems to be a strong correlation between fiat price and hashrate.

Below I present you a composite graphic showing overlay of hashrate and price.

Both graphed on log scale so we can see the details over the whole time range.

Quite fitting!




CORTEX7 Multi exchange Bitcoin trading client for Win, Mac, Nix, Android.
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April 02, 2014, 10:30:28 PM
 #20

So, according to that we will hit the 2000$ this year?

Let's see if this is going to happen. I would love to Smiley. But not yet, yet I keep trading my fiat for more BTC Smiley.

Edit; this post was in reaction to a post which just dissapeared with a graph.

Sorry dude, quick edit and now it's back...

The price function has more noise because it depends on ape brains, easily spooked and easily elated, but the system will rise relentlessly.

Resistance is FUTILE!


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