Quote from: inca on January 20, 2015, 12:34:41 AM

Quote from: thompete on January 19, 2015, 11:46:39 PM

Quote from: NotHatinJustTrollin on January 19, 2015, 08:42:02 PM

Quote from: inca on January 19, 2015, 08:04:25 PM

The bitcoin price is unrelated to mining costs or coin inflation (block reward).

Wow dude, just wow.
You are insane.

Its actually realted to a large level. 3600 coins are generated from mining and can be dumped daily. If halving happens, then that dump would decrease. So in a way, price fall will slow down, and possible rise will happen.

Well how do you account for the price rising as inflation has fallen since 2009?

I'll say it again. The bitcoin price is not related to the cost of bitcoin mining.

Inca is correct. There is a relationship but it is exceptionally small and to help the Noob from looking a total clown 3600/13,000,000 equals the increase in supply so thats like the effect of a running tap into a reservoir!

Just to add, if miners elect to "turn off" their programes then there wil be less in the pool to solve the maths problem. This being the case the time to solve will rise above the 10 minute target time. Should this happen then the system will reduce the difficulty of the maths problem to compensate.. So mining isnt a major issue.

What Inca probably wishes to say is stop commenting on something you dont understand as the current BTC market is so small that it is purely driven by sentiment.

Majority of coins are held as long term investment. Each day the price drops, mainly from panicky fools who dont understand markets and BTC technology so think BTC will crash to nothing, then more people are buying and storing for the long term. The rest are being traded by smart arse traders who will make money irrespective of the market falling or rising. They just need volatility.

If you really understood markets and basic maths then you would apply one to the other and understand that the current levels of trading i.e. thin is the main reason for the price dropping...

To summarise, mining has little, or no effect on current price fluctuation. Its purely sentiment!