Post
Topic
Board Beginners & Help
Re: invest in bitcoin a good idea with ASICs around the corner?
by
Cubic Earth
on 21/02/2013, 07:05:18 UTC
3. difficulty going up is guaranteed to drive bitcoin value up

There's no argument I know of that says an increasing difficulty that wasn't itself caused by a higher price would lead to a higher price.

Here is the argument:  A higher difficulty makes a 51% attack on the network harder to achieve.  Since that is widely recognized, a higher difficulty makes people more confident in the long term viability of bitcoin, which leads to more hording and acceptance, and THAT drives up the price.