Bitcoin price vs. hash rate?

[Swordsoffreedom]

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!

That seems about right since part of the price of bitcoin aside from services and utility is the amount of electricity miners use to create the bitcoins and build up the network

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[go4nature]

With this difficulty level bitcoin price should be at $900 range. Most miners are not making money in mining.

[Don007]

With this difficulty level bitcoin price should be at $900 range. Most miners are not making money in mining.

Most people will think about the future. As soon as the Bitcoin hits the $900.- , $1000.- or even more, they've got a nice stack of Bitcoins. And then it's up to them whether they are going to sell any. (For me, I keep buying BTC and hashrate instead of selling any. I believe in the future).

[Erdogan]

With this difficulty level bitcoin price should be at $900 range. Most miners are not making money in mining.

With bitcoin price at the $450 range the difficulty should be lower. Most miners are not making money in mining, and should quit.

[pabloangello]

With this difficulty level bitcoin price should be at $900 range. Most miners are not making money in mining.

With bitcoin price at the $450 range the difficulty should be lower. Most miners are not making money in mining, and should quit.

Some of them mine because they believe that value will be much higher than now.

[BitchicksHusband]

But what if ASIC miners made the hash rate much cheaper?  Is this overlaid chart still valid?

[g4c]

But what if ASIC miners made the hash rate much cheaper?  Is this overlaid chart still valid?

I guess so, the chart already covers quite a diverse range of dollar per hashrate.

[g4c]

With this difficulty level bitcoin price should be at $900 range. Most miners are not making money in mining.

agreed, currently it's probably a better bet to buy coin than mining gear.

[TwinWinNerD]

With this difficulty level bitcoin price should be at $900 range. Most miners are not making money in mining.

agreed, currently it's probably a better bet to buy coin than mining gear.

there was NO SINGLE point in time, where buying hardware was better than buying coins. Bet this will not change ever

[right wing authoritarian]

This is true but mining gives a continuous bitcoin flow to the miner. People can and have at various times made a bitcoin profit from mining. That is more bitcoins mined than bitcoins spent on hardware. Don't forget that bitcoin is worth more to the miner than the NPV of the investment. This is obvious otherwise no one would ever do it. If you want to truly understand the connection between price and hash rate you have to understand this point. Some people will mine at a loss.

[TwinWinNerD]

This is true but mining gives a continuous bitcoin flow to the miner. People can and have at various times made a bitcoin profit from mining. That is more bitcoins mined than bitcoins spent on hardware. Don't forget that bitcoin is worth more to the miner than the NPV of the investment. This is obvious otherwise no one would ever do it. If you want to truly understand the connection between price and hash rate you have to understand this point. Some people will mine at a loss.

I know that people have made a profit from investing into BTC hardware with FIAT. But at no time, where a Investment into mining hardware with BTC profitable in terms of USD.

(I don't count the time when BTC was 1200 USD and then some hardware was bought)

[Erdogan]

But what if ASIC miners made the hash rate much cheaper?  Is this overlaid chart still valid?

It is really the cost of mining that should follow the price. Depends how accurately it follows. Miners also do speculate when they buy equipment.

[right wing authoritarian]

In the long run miners will be able to make sufficient profit to cover there investment plus a risk premium. The hash rate will adjust to allow this to happen. However bitcoin mining can remain unprofitable with respect to buying new hardware for a long time. My prediction is that the new hardware market will die first and then there will be cheap secondhand hardware bought up by people mining for fun from people mining for profit. The hash rate will stay high until existing asic starts to wear out because unlike gpu's there is no other market for them.

[TwinWinNerD]

Next difficulty retarget occurs at block 294335.0 (eta 1.5 hrs): 6132793309.73 / +22.5% [est.]
crazy climb up difficulty 

if miners buy mining rig using BTC, it will be fine because BTC price is cheap now

Ha?

Quite the opposite is the case! If you buy with cheap BTC you pay much more BTC. But you don't earn more BTC because of that. It is good to invest into hardware at HIGH prices.!

[romneymoney]

There should be a long, uninterrupted supply of miners.
Existing miners say nothing when they are losing money and brag endlessly about their gross income.  Bottom line, the perception non-miners have about mining is generally more positive than the reality, so people continue to enter with exaggerated expectations.
At this time I believe it's unrealistic to expect any significant hash rate drop and without an extreme external event, no chance it will approach 0.

[Don007]

Next difficulty retarget occurs at block 294335.0 (eta 1.5 hrs): 6132793309.73 / +22.5% [est.]
crazy climb up difficulty  

if miners buy mining rig using BTC, it will be fine because BTC price is cheap now

Ha?

Quite the opposite is the case! If you buy with cheap BTC you pay much more BTC. But you don't earn more BTC because of that. It is good to invest into hardware at HIGH prices.!

Indeed, you're right.   When the value of the BTC is low, you've to pay more BTC for a price in fiat.  For example: 1 BTC = $100.  You pay 1 BTC for an item of $100. If 1 BTC = $50, you pay 2 BTC for an item of $100.  So you've to earn 2 BTC by mining, instead of 1 to ROI, Lannister.

[greenlion]

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!

The labor theory of value has never been correct.

[TwinWinNerD]

Next difficulty retarget occurs at block 294335.0 (eta 1.5 hrs): 6132793309.73 / +22.5% [est.]
crazy climb up difficulty 

if miners buy mining rig using BTC, it will be fine because BTC price is cheap now

Ha?

Quite the opposite is the case! If you buy with cheap BTC you pay much more BTC. But you don't earn more BTC because of that. It is good to invest into hardware at HIGH prices.!

Scratch that!

It is BETTER to invest into hardware at HIGH prices COMPARED to low prices. Still not good though !!!

[g4c]

With this difficulty level bitcoin price should be at $900 range. Most miners are not making money in mining.

agreed, currently it's probably a better bet to buy coin than mining gear.

there was NO SINGLE point in time, where buying hardware was better than buying coins. Bet this will not change ever

Damn! I never knew that, but yes it makes sense.

If only a quick time-trip to 2010 was possible. Buy 1000 BTC and cold wallet them on an engraved stainless steel sheet, bury it and time travel back.

Well I suppose we can pretend we are time travelling back from 2018.

[TwinWinNerD]

With this difficulty level bitcoin price should be at $900 range. Most miners are not making money in mining.

agreed, currently it's probably a better bet to buy coin than mining gear.

there was NO SINGLE point in time, where buying hardware was better than buying coins. Bet this will not change ever

Damn! I never knew that, but yes it makes sense.

If only a quick time-trip to 2010 was possible. Buy 1000 BTC and cold wallet them on an engraved stainless steel sheet, bury it and time travel back.

Well I suppose we can pretend we are time travelling back from 2018.

exactely. I don't think we are anywhere near a alltime high. Before 2018 we will hit 5 digits. All fundamental analysis says that.