difficulty skyrocketing and price stagnant

[jjshabadoo]

This is bullshit, why the hell isn't bitcoin following the basic laws of supply and demand ?

What the hell is going on with the hashrate ? It can't be FPGA's yet and why the hell would people be throwing money at GPU's right now?

just weird.

[Clipse]

This is bullshit, why the hell isn't bitcoin following the basic laws of supply and demand ?

What the hell is going on with the hashrate ? It can't be FPGA's yet and why the hell would people be throwing money at GPU's right now?

just weird.

Botnets / mysterminer, not much more makes sense at this time.

[oldDirty]

my 24h earning just drop from 40 to 35€cent, it's ok.

[the joint]

This is bullshit, why the hell isn't bitcoin following the basic laws of supply and demand ?

What the hell is going on with the hashrate ? It can't be FPGA's yet and why the hell would people be throwing money at GPU's right now?

just weird.

Because the demand is driven by speculation and not driven by the desire to purchase goods/services.  Thus, the price of Bitcoin currently functions largely as a product of psychology and not much else, though this is slowly changing.

[jjshabadoo]

Also, I realize difficulty doesn't effect supply as the same amount of coins are always created until reward halving occurs.

Just saying this can be a hell of a squeeze for miners.

[drakahn]

This is bullshit, why the hell isn't bitcoin following the basic laws of supply and demand ?

What the hell is going on with the hashrate ? It can't be FPGA's yet and why the hell would people be throwing money at GPU's right now?

just weird.

Botnets / mysterminer, not much more makes sense at this time.

... butterfly / largecoin testing the rigs?

a lot of singles getting turned on?

lower electricity cost means they can sell cheaper to try and get rid of the GPU miners to get more coins for themselves...

[Clipse]

This is bullshit, why the hell isn't bitcoin following the basic laws of supply and demand ?

What the hell is going on with the hashrate ? It can't be FPGA's yet and why the hell would people be throwing money at GPU's right now?

just weird.

Botnets / mysterminer, not much more makes sense at this time.

... butterfly / largecoin testing the rigs?

a lot of singles getting turned on?

lower electricity cost means they can sell cheaper to try and get rid of the GPU miners to get more coins for themselves...

I find it just a bit coincidental that when BIP16 came out about 1.5-2TH got removed from the network and then the same amount reappeared a while later which bumped the difficulty up to where it is now.

I suspect its the same user(s) who returned.

[Littleshop]

This is bullshit, why the hell isn't bitcoin following the basic laws of supply and demand ?

What the hell is going on with the hashrate ? It can't be FPGA's yet and why the hell would people be throwing money at GPU's right now?

just weird.

Botnets / mysterminer, not much more makes sense at this time.

... butterfly / largecoin testing the rigs?

a lot of singles getting turned on?

lower electricity cost means they can sell cheaper to try and get rid of the GPU miners to get more coins for themselves...

I find it just a bit coincidental that when BIP16 came out about 1.5-2TH got removed from the network and then the same amount reappeared a while later which bumped the difficulty up to where it is now.

I suspect its the same user(s) who returned.

Agreed.  I think about 25% of mining is botnets. 

[eleuthria]

This is bullshit, why the hell isn't bitcoin following the basic laws of supply and demand ?

What the hell is going on with the hashrate ? It can't be FPGA's yet and why the hell would people be throwing money at GPU's right now?

just weird.

Supply: 7,200 BTC/day
Mt.Gox Daily Volume: Normally around 50k/day (30 day volume of 1,570,000)

Supply has very little to do with the price.

[-ck]

Price is determined by bitcoins actually being used for something, i.e. trading with it, and the perceived value by doing so along with speculation about its relative worth. Mining has zero effect on the value of bitcoins themself, but mining difficulty tends to slowly lag behind and parallel value since there is a point where people still find it profitable. As the bitcoin miners get more and more elaborate and professional about their operations, it gets harder and harder for the amateur miner to make a profit and will one day be impossible for anything but the hard hitters. Unfortunately for these hard hitters, making mining less and less profitable is not going to make bitcoins more valuable.

[organofcorti]

This is bullshit, why the hell isn't bitcoin following the basic laws of supply and demand ?

What the hell is going on with the hashrate ? It can't be FPGA's yet and why the hell would people be throwing money at GPU's right now?

just weird.

Supply: 7,200 BTC/day
Mt.Gox Daily Volume: Normally around 50k/day (30 day volume of 1,570,000)

Supply has very little to do with the price.

If miners decide to go long with their coin because they feel current exchange rates won't provide enough profit, then supply could be affected. Probably marginally, even if all miners go long, but there could still be a significant effect if a more people join the economy and demand rises.

[Clipse]

I still think most miners are mining to mine and dump with no long term outlook/prospect.

[gat3way]

This is bullshit, why the hell isn't bitcoin following the basic laws of supply and demand ?

What the hell is going on with the hashrate ? It can't be FPGA's yet and why the hell would people be throwing money at GPU's right now?

just weird.

It is following them. But the thing is, miners have little to do with supply and nothing to do with demand.

[nedbert9]

I still think most miners are mining to mine and dump with no long term outlook/prospect.

Dark operators of botnets leeching off of Bitcoin only promotes the need for legit miners to short their coins to recoup costs at higher difficulties.

Get rid of botnets.

[BinaryMage]

I still think most miners are mining to mine and dump with no long term outlook/prospect.

Dark operators of botnets leeching off of Bitcoin only promotes the need for legit miners to short their coins to recoup costs at higher difficulties.

Get rid of botnets.

Easier said then done, I'm afraid.

[Aseras]

Obviously we've found a way. Tweak the protocol every so often to throw the bot nets off and make it hard for them to adapt the changes to the zombie network, they'll give up eventually .

[Clipse]

Obviously we've found a way. Tweak the protocol every so often to throw the bot nets off and make it hard for them to adapt the changes to the zombie network, they'll give up eventually .

That would suck since looking at the BIP16 change that caused a ton of headaches for over a week on multiple pools.

[Steve]

I still think most miners are mining to mine and dump with no long term outlook/prospect.

Dark operators of botnets leeching off of Bitcoin only promotes the need for legit miners to short their coins to recoup costs at higher difficulties.

Get rid of botnets.

Easier said then done, I'm afraid.

It will take care of itself…as more and more mining starts to be done with specialized hardware (that is much more efficient than GPUs), botnets will become irrelevant (they might still be operated, but they'll quickly diminish in terms of their percentage of mining activity).

[terrytibbs]

Dark operators of botnets leeching off of Bitcoin only promotes the need for legit miners to short their coins to recoup costs at higher difficulties.

Get rid of botnets.

They aren't leeching. They secure the network just like everyone else, and are paid for it by the network... just like everyone else.

To be fair, they're more likely not to sell their coins, because they have no costs to recoup (unlike your friendly neighbourhood BFL miner).

[BCMan]

Dark operators of botnets leeching off of Bitcoin only promotes the need for legit miners to short their coins to recoup costs at higher difficulties.

Get rid of botnets.

They aren't leeching. They secure the network just like everyone else, and are paid for it by the network... just like everyone else.

LOL. They steal hardware resources and money paid for energy bills, but they're nice, because they secure the network! Let more botnets live and increase difficulty up to 1000%, its good for bitcoin anyway! So the whole network will be driven by botnets. It is good, isn't it?