Miners are killing bitcoin

[ujka]

they have no choice but to sell coins to meet costs, the question on my mind is how does anyone still think proof of work was a good idea

That is the basic goal of mining - mining cost aproaching the cost of mined coins! Miners have to sell the coins, so coins can circulate to the market.
That equilibrium happened with GPU mining back then in 2011, now has to with ASICs.

[1715352515]

1715352515

[Flashman]

I'm pretty sure that if the price was going the other way hard, there would be whines about the miners hoarding and not putting fresh coins in circulation. 

[gog1]

I'm pretty sure that if the price was going the other way hard, there would be whines about the miners hoarding and not putting fresh coins in circulation. 

I doubt it - this is certainly not true for the 'corporate' miner

[MarketNeutral]

Bitcoin is fine. Miners help give it value.

You noobs need to get used to price fluctuations.

I'm sorry you all bought higher than the current spot price, and therefore cannot sell your bitcoins for a profit, but everyone here knows Bitcoin, as an investment, is high risk. You ALL knew that.

Many people are doing just fine with the current price. Sure, a higher price would be nicer, but some of us bought BTC at $5 and $10 and $20 each. Or GPU mined a ton of bitcoins.

The noobs are panicking and making a noise about their losses. Ok. Then maybe you're not ready for bitcoin.

Here's a novel suggestion, use Bitcoin to buy and sell things. That's what a lot of us do. Ask people if they accept bitcoin or are willing to accept it. Don't just camp out on the exchanges all day. Use it for goods and services. Satoshi gave us this gift of bitcoin. It's amazing technology. Use it.

[monotone]

they have no choice but to sell coins to meet costs, the question on my mind is how does anyone still think proof of work was a good idea

Proof of Work is terrible idea, I vote for abandoning it completely especially offline, where I wanna be paid for doing no work whatsoever. 

[OleOle]

I have a lot to lose, when Bitcoin fails, but I still enjoy this threads. A lot to laugh about.

Yeah, nothing has really changed though, it's still the little guy getting ground into the floor. As the price goes lower more people feel the pain and then they start to get angry - some of that anger is boiling over on this thread.

Some people feel that they were duped by all the "To the Moon!" ranting when the price was high, they believed that by getting in they'd be early adopters before the masses got on board... now they're thinking that the masses won't get on board... the dream is over, bitcoins bought between $500 - $1000 are worth less than $250, corporate miners are depressing prices further as they sell into weakened demand... yeah they are mad, angry and hurting.

Tough times for some folks... tough times.

 

[MarketNeutral]

One thing is clear: Bitcoin is many people's first investment. What people are experiencing with the price drop happens every single day in other investment markets. People must learn the hard way.


Watch this video from the ol' days MtGox, and pay attention to the price. Remember, this was BEFORE the big spike up over $1000.

https://www.youtube.com/watch?v=K2ku1A5Ox8U


People panic. Prices go up and prices go down. It's all part of the game.

[AGD]

Most of the postings atm can be described in one only word: Panic
Y'all can go over to the dumping part now, instead of extending your pain.

[MarketNeutral]

Most of the postings atm can be described in one only word: Panic
Y'all can go over to the dumping part now, instead of extending your pain.

haha. Well said.

[JamesBlack72]

One thing is clear: Bitcoin is many people's first investment. What people are experiencing with the price drop happens every single day in other investment markets. People must learn the hard way.


Watch this video from the ol' days MtGox, and pay attention to the price. Remember, this was BEFORE the big spike up over $1000.

https://www.youtube.com/watch?v=K2ku1A5Ox8U


People panic. Prices go up and prices go down. It's all part of the game.

Thanks! Just watched it in some other thread on this forum, and was mesmerized by how price was dropping before the 2013 craze. I'm holding my breath and observing the whole picture to unveil.

[MarketNeutral]

The price drop in 2011 was especially painful. >$25 per BTC to <$5 per BTC. That one really hurt.

And yet, mining continued. 

[mayax]

The price drop in 2011 was especially painful. >$25 per BTC to <$5 per BTC. That one really hurt.

And yet, mining continued.  

Yes, mining continued because the electricity bill was OK for that year, 2011.
 Now, you have to spend a lot of money on electricity and hardware otherwise you won't make any profit.

You have the cost of the mining computers, storage space, and energy for cooling and powering the mining machines.

The profit in bitcoin mining is all about making sure that the selling price (or stored trading value) of the mined bitcoins is greater than the cost to mine them in the first place.

As the Bitcoin mining profitability is all about getting the hash rate (speed of calculation) high enough, while the cost of hardware and energy is low enough. Even so, because bitcoins become more difficult to create, the existing hardware (no matter how large its current hash rate) will quickly obsolete.

You cannot mine  by using your PC anymore.


If 1 BTC = 5 USD = NO miner

[MarketNeutral]

The price drop in 2011 was especially painful. >$25 per BTC to <$5 per BTC. That one really hurt.

And yet, mining continued. 

Yes, mining continued because the electricity bill was OK for that year, 2011.
 Now, you have to spend a lot of money on electricity and hardware otherwise you won't make any profit.

You cannot mine  by using your PC anymore.

That's funny. Run a room full of overclocked GPUs in the middle of summer, then wait till you see the electricity bill.

[MarketNeutral]

If 1 BTC = 5 USD = NO miner

I will mine, and so will others. In fact, I've never sold a single bitcoin that I've mined, and I've been mining since 2010.

Low difficulty? No problem. Open the Bitcoin console and type "setgenerate true" and keep the hashes coming.

People are panicking now, because the price is falling. When price rises again, people will feel differently.

Mining isn't going away.

[mayax]

If 1 BTC = 5 USD = NO miner

I will mine, and so will others. In fact, I've never sold a single bitcoin that I've mined, and I've been mining since 2010.

Low difficulty? No problem. Open the Bitcoin console and type "setgenerate true" and keep the hashes coming.

People are panicking now, because the price is falling. When price rises again, people will feel differently.

Mining isn't going away.

you will be on loss. I am not sure why someone would do that.

One miner alone can earn up to 1-2 BTC per month

calculate yourself :    http://blockchained.com/profit/index.php

[johnyj]

The fixed daily supply nature will make exchange rate's rise and fall much dramatic than traditional currency, since the supply can not be adjusted to demand, exchange rate is the only variable

But this is considered as the best feature of bitcoin, just by looking at exchange rate you will know the demand is weak currently. With fiat money it is much more difficult to see the demand since FED is changing the money supply all the time

[MarketNeutral]

If 1 BTC = 5 USD = NO miner

I will mine, and so will others. In fact, I've never sold a single bitcoin that I've mined, and I've been mining since 2010.

Low difficulty? No problem. Open the Bitcoin console and type "setgenerate true" and keep the hashes coming.

People are panicking now, because the price is falling. When price rises again, people will feel differently.

Mining isn't going away.

you will be on loss. I am not sure why someone would do that.

One miner alone can earn up to 1-2 BTC per month

calculate yourself :    http://blockchained.com/profit/index.php

It's only a loss if I sell, and I have never sold. I mine because I like to mine.

[MarketNeutral]

The fixed daily supply nature will make exchange rate's rise and fall much dramatic than traditional currency, since the supply can not be adjusted to demand, exchange rate is the only variable

But this is considered as the best feature of bitcoin, just by looking at exchange rate you will know the demand is weak currently. With fiat money it is much more difficult to see the demand since FED is changing the money supply all the time

Good food for thought. A few other points to consider. The rate at which bitcoin supply increases is known and predictable to a fairly precise degree. The rate at which the supply of new dollars increases is neither known nor predictable. (The Fed doesn't change the money supply, but your point still stands.)

Also consider the velocity of bitcoin, which is often overlooked by speculators.

In a strange way, bitcoin has far more in common with the US dollar than with other traditional currencies or even cryptocurrencies, insofar as bitcoin has a quasi-reserve status, much like the US dollar, treasuries, and gold.

[mayax]

If 1 BTC = 5 USD = NO miner

I will mine, and so will others. In fact, I've never sold a single bitcoin that I've mined, and I've been mining since 2010.

Low difficulty? No problem. Open the Bitcoin console and type "setgenerate true" and keep the hashes coming.

People are panicking now, because the price is falling. When price rises again, people will feel differently.

Mining isn't going away.

you will be on loss. I am not sure why someone would do that.

One miner alone can earn up to 1-2 BTC per month

calculate yourself :    http://blockchained.com/profit/index.php

It's only a loss if I sell, and I have never sold. I mine because I like to mine.

maybe you are an eccentric millionaire and you want to have some "fun" (i am not sure where it is the fun to mine..in the end, it's your choice) BUT 99% from miners are doing it for pure profit. They mine, the mining has a cost and they sell for a price.

If they get a lower amount than the costs, that means bankrupt.

[LiteCoinGuy]

Miners to da Mooon!