History of ASICs introduction into Bitcoin Market - Question

[Honeycutt22]

I'm fairly new to the mining game and missed the period of time when ASICs and high powered miners started to hit the BTC scene. I'm trying to get into the new ASICs for scrypt and was trying to figure out what type of impact a large increase in hashrate would have...

1) Is it a fair assumption to say the new ASICs into scrypt would have the same/similar effect it did on Bitcoin?

2) If #1 is true - What type of effect did the large asic introduction have on the BITCOIN market, community, and price?

3) Is there any other things that could be expected from these changes that would effect the bottom line (ROI) that I haven't mentioned?

Any info would be awesome! Not sure if this thread belongs in alt currencies or speculation, so apologies if I posted in the wrong spot.

Also - If I used affect/effect incorrectly don't bash me for it, but feel free to correct me!

[1715051984]

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[1715051984]

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[1715051984]

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[vpitcher07]

1. Possibly. Many people saw Litecoin a better coin than bitcoin because it was "ASIC proof". However now that that has changed, I don't really see the benefit of LTC besides a faster block time. (I think a lot of people would agree)
2. It's hard to say if ASIC's effected the price at all. So much happened so quickly it would tough to prove if something had an affect on price more than the other.

Here's my opinion on mining. When people call bitcoin a scam I usually say they have no idea what they're talking about. However, mining on the other hand is almost always scam. If you're not looking to drop a significant amount of money on hardware then I can almost promise you, you won't make on ROI unless we see a significant price increase. If you want to mine just for the sake of doing it (for fun) then go for it! I was doing it for a while myself. But if you're looking to make money on it then really put your research into hardware and difficulty. Chances are if you're not dropping at least $10,000 on hardware you're not going to make money. It's a risky business. You have to bank on a price increase if you're going to be doing small time mining. But like I said, this is just my opinion and I could be very wrong. It's really all about chance and luck.

[ljudotina]

If you look at price: https://bitcoinwisdom.com/markets/btce/ltcusd and diff increase: https://bitcoinwisdom.com/litecoin/difficulty of Litecoin, you can see that it's going one way,diff or no diff. It just doesnt have affect. ASIC's only concentrate hashing power and that's it. Question is, do you have enough $$$ to fight with big boys. Price will continue to do down and you have to calculate with it.

[Honeycutt22]

If you look at price: https://bitcoinwisdom.com/markets/btce/ltcusd and diff increase: https://bitcoinwisdom.com/litecoin/difficulty of Litecoin, you can see that it's going one way,diff or no diff. It just doesnt have affect. ASIC's only concentrate hashing power and that's it. Question is, do you have enough $$$ to fight with big boys. Price will continue to do down and you have to calculate with it.

Well, I have dropped $14k on two gaw miner vault breakers - 1500mh total. I'm not sure if that qualifies me as a bigboy but it's a sizable investment I think. I still have the option two get a refund if something crazy happens before it's delivered.

[jjc326]

What a shame that LTC was meant to be for CPUs only and it is turning exactly into Bitcoin.  It just show that technology is always changing and improving so if there is money to be made, someone will find a way to do it.  LTC truly is almost the same as BTC now except, like the other poster said, it's a faster block time.  To answer your quetion, seems to me that BTC price went up as ASICs came into production, but was that just a coincidence or causation?  Hard to say, I think it's speculation, but seems like coincidence to me.

[Honeycutt22]

Appreciate all the responses... I found an article that's similar to the topic but doesn't actually address ASICs introduction. Neat little tidbit none the less.




http://www.reddit.com/r/Bitcoin/comments/2cby4a/bitcoin_price_chart_with_historic_events/

[jonnybravo0311]

I'm fairly new to the mining game and missed the period of time when ASICs and high powered miners started to hit the BTC scene. I'm trying to get into the new ASICs for scrypt and was trying to figure out what type of impact a large increase in hashrate would have...

1) Is it a fair assumption to say the new ASICs into scrypt would have the same/similar effect it did on Bitcoin?

2) If #1 is true - What type of effect did the large asic introduction have on the BITCOIN market, community, and price?

3) Is there any other things that could be expected from these changes that would effect the bottom line (ROI) that I haven't mentioned?

Any info would be awesome! Not sure if this thread belongs in alt currencies or speculation, so apologies if I posted in the wrong spot.

Also - If I used affect/effect incorrectly don't bash me for it, but feel free to correct me!

You used effect correctly in numbers 1 and 2, but incorrectly in number 3.  To understand the proper usage, you need to understand the meanings of the words:

Affect - to bring about, or to produce, a change in something
Effect - the result of something, or the ability to bring about a result

Generally, and a pretty good rule of thumb to use, affect is a verb, and effect is a noun.  Using this approach, you can substitute words in your sentences to see if they still make sense.  Substitute "consequence" for "effect" and "transform" for "affect".

ASICs affected mining difficulty. ("ASICs transformed mining difficulty" makes sense, whereas "ASICs consequence mining difficulty" does not)
The effect was a massive increase in mining difficulty. ("The consequence was a massive increase..." makes sense, whereas "The transform was a massive increase..." does not)

As with most everything else in the English language however, this is not always the case, which is why I started by stating you need to understand the meanings of the words.  For example:

Even though she was sad, she displayed a happy affect.
You can effect change by taking action.

So, how will you be affected by the effect?

[primer10]

1. Possibly. Many people saw Litecoin a better coin than bitcoin because it was "ASIC proof". However now that that has changed, I don't really see the benefit of LTC besides a faster block time. (I think a lot of people would agree)
2. It's hard to say if ASIC's effected the price at all. So much happened so quickly it would tough to prove if something had an affect on price more than the other.

Here's my opinion on mining. When people call bitcoin a scam I usually say they have no idea what they're talking about. However, mining on the other hand is almost always scam. If you're not looking to drop a significant amount of money on hardware then I can almost promise you, you won't make on ROI unless we see a significant price increase. If you want to mine just for the sake of doing it (for fun) then go for it! I was doing it for a while myself. But if you're looking to make money on it then really put your research into hardware and difficulty. Chances are if you're not dropping at least $10,000 on hardware you're not going to make money. It's a risky business. You have to bank on a price increase if you're going to be doing small time mining. But like I said, this is just my opinion and I could be very wrong. It's really all about chance and luck.

I agree and what you have said is quite similar to how stock market works.

Unfortunately this shifts bitcoin decentralized model towards a centralized one (pool)

[Vlad2Vlad]

ASICS didn't make the BTC price go up.  Higher difficulty doesn't mean higher price all on its own.

That said, LTC, doge and a few others will go up due to adoption by payment processors.