Bitcoin price cannot fall infinitely

[Sevvero]

Miners ? what about the other 12 million Bitcoin ? if only 5% of that 12 million hit these thin book orders of today's exchanges...Bitcoin will not hold $100 and not $400

Exactly, this shit is going down. $413 already. Still holding fools?

[mmitech]

How comforting is that to you ?

[hayabusa911]

I don't think BTC/$ will fall a lot below $400 simply because miners will stop selling coins below cost of production. Miners currently provide large percentage of the bitcoins sold on exchanges.

I don't understand this logic, so they will stop selling and pay their electricity cost out of pocket? which will end up costing them more money out of pocket. No, they will sell Bitcoin at any market price to get at least something back to pay for their hardware and electricity. If anything, dropping price will prompt them to sell even more if they have hoarded some coins, so they could afford to pay their bills.

PoW mining expense is the reason the price is dropping.

Exactly, some people here are delusional.

And some are just dicks.

[dree12]

I disagree that Bitcoin price cannot decrease further, because miners are a very small proportion of Bitcoin sellers.

But I'm currently bullish and believe that we're near a minimum.

[spiderbrain]

Power used to be a significant cost in bitcoin mining, now it's hardware deprecation. If you don't mine for a month the difficulty will have gone up so much you will have lost out on 20% of your potential income. However, the way prices are going now, I think there will be less and less people investing in new mining hardware, so the difficulty rate will stop increasing as fast. This will go on to make it easier for people who already own mining hardware by reducing the deprecation rate, consequently taking the price pressure off bitcoin. That will be where the bottom forms, but how low does it have to go to get there? Who knows, 400 might hold, 340 is more likely, 270 very likely in my opinion.

[giantdragon]

However, the way prices are going now, I think there will be less and less people investing in new mining hardware, so the difficulty rate will stop increasing as fast. This will go on to make it easier for people who already own mining hardware by reducing the deprecation rate, consequently taking the price pressure off bitcoin.

Even if hash rate growth will slow down it won't stop completely. Miners will fear depreciation of their rigs and run them even at loss (likely saving mined coins in hope of price increase and paying electric bills from own money).

[piramida]

Power used to be a significant cost in bitcoin mining, now it's hardware deprecation. If you don't mine for a month the difficulty will have gone up so much you will have lost out on 20% of your potential income. However, the way prices are going now, I think there will be less and less people investing in new mining hardware, so the difficulty rate will stop increasing as fast. This will go on to make it easier for people who already own mining hardware by reducing the deprecation rate, consequently taking the price pressure off bitcoin. That will be where the bottom forms, but how low does it have to go to get there? Who knows, 400 might hold, 340 is more likely, 270 very likely in my opinion.

That's true, although this is a process with high inertia - hash power put online today was probably paid for and ordered quite a while back. Also, some businesses have investor money to spend and they can expand keeping in mind the future price of bitcoin - not selling now.

I agree that this should all form a solid shortage of coins, once the panic cools down.

[Amph]

Miners ? what about the other 12 million Bitcoin ? if only 5% of that 12 million hit these thin book orders of today's exchanges...Bitcoin will not hold $100 and not $400

you sold everything right? it's normal to react in this way, when you are not attached to your thing again

[devphp]

Miners ? what about the other 12 million Bitcoin ? if only 5% of that 12 million hit these thin book orders of today's exchanges...Bitcoin will not hold $100 and not $400

you sold everything right? it's normal to react in this way, when you are not attached to your thing again

It's actually Investing 101 lesson that you should not have an emotional attachment to your investment

[nemo]

Listen. Some miners are fucked. They bought un returnable, unsellable rigs, they rent storage space. They have absolutely no choice whatsoever but to sell their coins. They're run by businessmen who made a mistake. Not 16 year old boys who suck off satoshi and have wet dreams about the Fed burning down. Not spartans who hodl. This is how the game is. Some miners buy their chips for 1/10th of what you and I would have to pay. Some countries are cold and have cheap electricity. Saying a bitcoin costs $400 to make is naive. Saying this is a good price is retarded. Ontop of that you have tons of factors. Miners will sell because they have no choice. They have to pay their shit using fiat. Some of you guys are so dumb.

[twiifm]

Some of you guys are so dumb.

I'm gonna miss all the comedy gold when bitcoin dies.   

[cbeast]

Listen. Some miners are fucked. They bought un returnable, unsellable rigs, they rent storage space. They have absolutely no choice whatsoever but to sell their coins. They're run by businessmen who made a mistake. Not 16 year old boys who suck off satoshi and have wet dreams about the Fed burning down. Not spartans who hodl. This is how the game is. Some miners buy their chips for 1/10th of what you and I would have to pay. Some countries are cold and have cheap electricity. Saying a bitcoin costs $400 to make is naive. Saying this is a good price is retarded. Ontop of that you have tons of factors. Miners will sell because they have no choice. They have to pay their shit using fiat. Some of you guys are so dumb.

You would say the same thing about gold, right?

[twiifm]

Listen. Some miners are fucked. They bought un returnable, unsellable rigs, they rent storage space. They have absolutely no choice whatsoever but to sell their coins. They're run by businessmen who made a mistake. Not 16 year old boys who suck off satoshi and have wet dreams about the Fed burning down. Not spartans who hodl. This is how the game is. Some miners buy their chips for 1/10th of what you and I would have to pay. Some countries are cold and have cheap electricity. Saying a bitcoin costs $400 to make is naive. Saying this is a good price is retarded. Ontop of that you have tons of factors. Miners will sell because they have no choice. They have to pay their shit using fiat. Some of you guys are so dumb.

You would say the same thing about gold, right?

Have you seen gold miners ETF?

[Wilhelm]

Listen. Some miners are fucked. They bought un returnable, unsellable rigs, they rent storage space. They have absolutely no choice whatsoever but to sell their coins. They're run by businessmen who made a mistake. Not 16 year old boys who suck off satoshi and have wet dreams about the Fed burning down. Not spartans who hodl. This is how the game is. Some miners buy their chips for 1/10th of what you and I would have to pay. Some countries are cold and have cheap electricity. Saying a bitcoin costs $400 to make is naive. Saying this is a good price is retarded. Ontop of that you have tons of factors. Miners will sell because they have no choice. They have to pay their shit using fiat. Some of you guys are so dumb.

Unless having a Solar farm high in the Siberian mountains for mining. Then after initial investment free coins

[yefi]

How comforting is that to you ?

Yeah, the Bitstamp order book looks horrible. You'd think more people would want to catch a btc-e style flash crash, but obviously not.

[Amph]

Miners ? what about the other 12 million Bitcoin ? if only 5% of that 12 million hit these thin book orders of today's exchanges...Bitcoin will not hold $100 and not $400

you sold everything right? it's normal to react in this way, when you are not attached to your thing again

It's actually Investing 101 lesson that you should not have an emotional attachment to your investment

who said that was emotional?

[mmitech]

Miners ? what about the other 12 million Bitcoin ? if only 5% of that 12 million hit these thin book orders of today's exchanges...Bitcoin will not hold $100 and not $400

you sold everything right? it's normal to react in this way, when you are not attached to your thing again

It's actually Investing 101 lesson that you should not have an emotional attachment to your investment

who said that was emotional?

I am not attached to this investment or any other investment, I try to be as objective as possible... and this didnt fail me, the only time I lost money was when I listened to perma-bulls or perma-bears, you have to find a healthy balance and more objectivity.

[valdepretium]

Unless having a Solar farm high in the Siberian mountains for mining. Then after initial investment free coins

But what kind of network connection do you think you could get in a location like that? Satellite bandwidth surely ain't cheap.

[devphp]

I am not attached to this investment or any other investment, I try to be as objective as possible... and this didnt fail me, the only time I lost money was when I listened to perma-bulls or perma-bears, you have to find a healthy balance and more objectivity.

+1 we all have to remind ourselves to remember to follow these wise words.