Price is dropping and Difficulty is increasing !!!

[newIndia]

How is this possible ? How come more miners are joining the league at such a low price ? Is not it obvious that miners will spend more than what they'll make from mining at this below 300 price and upcoming 12% difficulty jump ?

[waaat?]

How is this possible ? How come more miners are joining the league at such a low price ? Is not it obvious that miners will spend more than what they'll make from mining at this below 300 price and upcoming 12% difficulty jump ?

maybe it's an attack by a malicious party in anticipation of miners dropping out

see here:

https://bitcointalk.org/index.php?topic=912190.0

scenario:

malicious player comes in with additional hash causing higher diff. Next a selloff occurs, miners drop out, the malicous actor turns off his hash:

THE END

[Jamie_Boulder]

The next difficulty won't be here until 2017...

Price is dropping because of the influx of investors over the past 18 months slowly realizing it's a currency not an investment.

[waaat?]

The next difficulty won't be here until 2017...

you confuse difficulty with something else .

Retarget every 2 weeks.

[newIndia]

How is this possible ? How come more miners are joining the league at such a low price ? Is not it obvious that miners will spend more than what they'll make from mining at this below 300 price and upcoming 12% difficulty jump ?

maybe it's an attack by a malicious party in anticipation of miners dropping out

see here:

https://bitcointalk.org/index.php?topic=912190.0

scenario:

malicious player comes in with additional hash causing higher diff. Next a selloff occurs, miners drop out, the malicous actor turns off his hash:

THE END

Difficulty is steadily increasing for last one year. Recent two drops were due to PayCoin mining for immediate profit. As those miners are back, difficulty is on rise again.

Is it technically possible that at same hashrate, difficulty is increasing as blocks are being found faster because of random luck ?

[carlosiness]

i thought this is fundamental bitcoin rule, no dependence between price. i am not very aware about btc mining..so, sorry

[newIndia]

i thought this is fundamental bitcoin rule, no dependence between price. i am not very aware about btc mining..so, sorry

There is no direct dependency, but indirectly, there is. To keep miners switched on at a higher difficulty, bitcoin's FIAT value need to rise, because miners are expected to pay their bills in FIAT.

[carlosiness]

i thought this is fundamental bitcoin rule, no dependence between price. i am not very aware about btc mining..so, sorry

There is no direct dependency, but indirectly, there is. To keep miners switched on at a higher difficulty, bitcoin's FIAT value need to rise, because miners are expected to pay their bills in FIAT.

yes, it's logic. who wants to 'work' without profit.. after all, everything costs..

[BitCoinNutJob]

How is this possible ? How come more miners are joining the league at such a low price ? Is not it obvious that miners will spend more than what they'll make from mining at this below 300 price and upcoming 12% difficulty jump ?

technology evolution imo and also the fact that mining farms can mine for cheaper vs amateur they can keep mining for lower prices.  

[newIndia]

How is this possible ? How come more miners are joining the league at such a low price ? Is not it obvious that miners will spend more than what they'll make from mining at this below 300 price and upcoming 12% difficulty jump ?

technology evolution imo and also the fact that mining farms can mine for cheaper vs amateur they can keep mining for lower prices.  

U always need electricity to mine. So, the only option is if they can manage free electricity, like solar power.

[carlosiness]

How is this possible ? How come more miners are joining the league at such a low price ? Is not it obvious that miners will spend more than what they'll make from mining at this below 300 price and upcoming 12% difficulty jump ?

technology evolution imo and also the fact that mining farms can mine for cheaper vs amateur they can keep mining for lower prices.  

U always need electricity to mine. So, the only option is if they can manage free electricity, like solar power.

but maintenance and deterioration also needs extra money.

[turvarya]

i thought this is fundamental bitcoin rule, no dependence between price. i am not very aware about btc mining..so, sorry

There is no direct dependency, but indirectly, there is. To keep miners switched on at a higher difficulty, bitcoin's FIAT value need to rise, because miners are expected to pay their bills in FIAT.

So, I ask it here again:
Is there any proof that miners are selling their mined Bitcoin to pay their bills? Last time I checked recent block rewards, it seemed like they are hodling BIG.
(I expect people to ignore me again or come up with some more purely speculative statements)

[BitCoinNutJob]

How is this possible ? How come more miners are joining the league at such a low price ? Is not it obvious that miners will spend more than what they'll make from mining at this below 300 price and upcoming 12% difficulty jump ?

technology evolution imo and also the fact that mining farms can mine for cheaper vs amateur they can keep mining for lower prices.  

U always need electricity to mine. So, the only option is if they can manage free electricity, like solar power.

Solar power set ups on housing can often result in selling back electricity to electric company, sure the big miners have no problems.

[Madness]

The next difficulty won't be here until 2017...

Price is dropping because of the influx of investors over the past 18 months slowly realizing it's a currency not an investment.

I would say it's only exchanges websites Manipulations  btw , what do you mean exactly by saying the next difficultly won't be here until 2017 , if you mean the next halving block reward then that would be in July 2016 & not 2017 (Price should increase there obviously)

[LOBSTER]

The next difficulty won't be here until 2017...

Price is dropping because of the influx of investors over the past 18 months slowly realizing it's a currency not an investment.

I would say it's only exchanges websites Manipulations  btw , what do you mean exactly by saying the next difficultly won't be here until 2017 , if you mean the next halving block reward then that would be in July 2016 & not 2017 (Price should increase there obviously)

Why should they manipulate? I think not...it's game between whales...that's all.

[Q7]

Maybe too early to tell or it is at a stage whereby miners are still holding on. It is possible that despite their thin razor profit margin, they will still put their hardware into good use. Or either way, most miners are located in countries where electricity is cheap and thus they could still maintain profitability even at current price.

[leopard2]

same reason why oil producers still produce oil, although most of them are under water (Venezuela, fracking, Russia...) they need $80 and its at $55

reason: fixed cost remains, shutting down not so easy for large operations

It takes  awhile until the shutting down occurs, and no new wells are drilled too. In the upstream industry this takes around 3-6 months minimum to register

In BTC it may take afew weeks or months, and then?

---> HASHRATE STAGNATION MEETS BLOCK HALVING ---> PRICE COULD EXPLODE

[altcoin hitler]

How is this possible ? How come more miners are joining the league at such a low price ? Is not it obvious that miners will spend more than what they'll make from mining at this below 300 price and upcoming 12% difficulty jump ?

maybe it's an attack by a malicious party in anticipation of miners dropping out

see here:

https://bitcointalk.org/index.php?topic=912190.0

scenario:

malicious player comes in with additional hash causing higher diff. Next a selloff occurs, miners drop out, the malicous actor turns off his hash:

THE END

interesting how this possiblity is brought up but completely ignored by everyone else.

[1Referee]

How is this possible ? How come more miners are joining the league at such a low price ? Is not it obvious that miners will spend more than what they'll make from mining at this below 300 price and upcoming 12% difficulty jump ?

maybe it's an attack by a malicious party in anticipation of miners dropping out

see here:

https://bitcointalk.org/index.php?topic=912190.0

scenario:

malicious player comes in with additional hash causing higher diff. Next a selloff occurs, miners drop out, the malicous actor turns off his hash:

THE END

interesting how this possiblity is brought up but completely ignored by everyone else.

Most likely because he is quite new.

If it was posted from a Legendary account it would have gotten more attention.

It's definitely weird seeing the price drop quite a bit and the difficulty goes up with +13%

[BitCoinNutJob]

How is this possible ? How come more miners are joining the league at such a low price ? Is not it obvious that miners will spend more than what they'll make from mining at this below 300 price and upcoming 12% difficulty jump ?

maybe it's an attack by a malicious party in anticipation of miners dropping out

see here:

https://bitcointalk.org/index.php?topic=912190.0

scenario:

malicious player comes in with additional hash causing higher diff. Next a selloff occurs, miners drop out, the malicous actor turns off his hash:

THE END

interesting how this possiblity is brought up but completely ignored by everyone else.

Im fine being invested in markets with manipulation, you know you're on to a good thing.