Bitcoin price vs. hash rate?

[ElOmmy]

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]

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

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

[Erdogan]

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]

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]

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]

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.

[Swordsoffreedom]

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

[Lannister]

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

[Erdogan]

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]

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
This will NEVER happen you can only speculate.

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

[bobdutica]

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]

btc will die if no one use it

[top10merchant]

btc price falling down but hash rate raise up ... 

[giantdragon]

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]

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]

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.

[roslinpl]

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 wow so many new miners come in few weeks
So many new Bitcoin users

[Don007]

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

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

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

[g4c]

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!

[g4c]

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

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

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!