Production cost will determine price

[Jeremias]

The cost of producing a bitcoin will determine its price (the point of maximum pain), we will see more dumps and then it will stabilize, usage has already been accounted for and will not result in a spike until and unless there are new apps like silk road

[b!z]

The mining thing is already obvious.
Illegal markets won't do anything for the price.
Only mass adoption will, and by now, almost everyone has heard of bitcoin. There is no spike up ahead.

[Jeremias]

The mining thing is already obvious.
Illegal markets won't do anything for the price.
Only mass adoption will, and by now, almost everyone has heard of bitcoin. There is no spike up ahead.

Mining has still not been accounted, there will be more fall to come, until it reaches the agreeable production cost level, and only from that point onwards there will be a spike and price determination. I may sound bearish, but it does not harm to see the real picture, the price shot up without any support, happened partly china, partly due to horde for ASIC boom. Many ASIC farms will not be sustainable.

As for illegal markets, like or not they still are driving the price, take them all away and see the impact on the price.

[altcoin hitler]

Mining costs correlate with hashrate which correlates with price. The lower price goes the lower hashrate will go, the lower will be the costs of production.

I think it's time to get out entirely as i see a complete failure comming due to bitcoin being not scarce and thus not good to store value. What you want to do with a moneytoken that isn't a good store of value? Nothing. That's what.

[Nagle]

The cost of producing a bitcoin will determine its price (the point of maximum pain), we will see more dumps and then it will stabilize, usage has already been accounted for and will not result in a spike until and unless there are new apps like silk road

No, no. Read some of the threads in mining speculation. This has been discussed many times. Price drives difficulty, not the other way round.

[criptix]

The cost of producing a bitcoin will determine its price (the point of maximum pain), we will see more dumps and then it will stabilize, usage has already been accounted for and will not result in a spike until and unless there are new apps like silk road

No, no. Read some of the threads in mining speculation. This has been discussed many times. Price drives difficulty, not the other way round.

if you look at difficulty of the past year then this cant be true.

The mining thing is already obvious.
Illegal markets won't do anything for the price.
Only mass adoption will, and by now, almost everyone has heard of bitcoin. There is no spike up ahead.

i think this is only one of the possibilities.
the adoption of bitcoin by HNWI or UHNWI would be more then enough to stabilize and let the bitcoin price rise by several orders of magnitude.

[adaseb]

Well I agree to some point but instead of decreasing the value of BTC. They should just decrease the block reward.

[Jeremias]

so what happens if the price further goes down, do we expect more miners opting out as a result decrease in diff or they stay put, cause everyone knows moving out won't help, as we have already seen, two successive drops in diff was followed by an increase in diff.

[ramkumar]

so what happens if the price further goes down, do we expect more miners opting out as a result decrease in diff or they stay put, cause everyone knows moving out won't help, as we have already seen, two successive drops in diff was followed by an increase in diff.

i saw lots of bitcoin haters and lot of people already out. i just lost my hope here and this is failure drops

[Jeremias]

so what happens if the price further goes down, do we expect more miners opting out as a result decrease in diff or they stay put, cause everyone knows moving out won't help, as we have already seen, two successive drops in diff was followed by an increase in diff.

i saw lots of bitcoin haters and lot of people already out. i just lost my hope here and this is failure drops

Who says I am a bitcoin hater? I never knew that you become hater if you discuss price realities

[NUFCrichard]

The mining thing is already obvious.
Illegal markets won't do anything for the price.
Only mass adoption will, and by now, almost everyone has heard of bitcoin. There is no spike up ahead.

I think you are speaking as an "insider". In normal life no one talks about bitcoin, no one understands it, they have probably heard the name now but they think it is that weird internet money!
When it become easier to use than cash/card, then people will really hear about it!