Post
Topic
Board Economics
Re: relationship of bitcoin prices and mining price
by
Erdogan
on 09/07/2015, 23:36:48 UTC
When the price of Bitcoins is higher, people are more likely to mine, especially people whose costs are close to their expected proceeds.
As the demand of bitcoin increase, mining prices also increase as it include hardware to purchase,supply of electricity (countinous flow of power)etc.
because of blockchain as it has to countinous update in transaction. Sad
as with decrease in demand of bitcoin ,mining price may effect as they have to overcome with their regular charges. Smiley


Correct. Higher price means more expenditure on mining. Note the direction of the causality.

So the direction is vice versa of what people including me think

Many people get this wrong. Do you think majority makes it right?