Quote from: Anon136 on March 09, 2013, 02:30:03 PM

you are failing to understand how markets work. Sure all things being equal an increase in supply will lead to a decrease in price but markets price these things in gradually over time. the switch to asics for example was probably priced in over a year ago.

*gasp*

You mean the idea of ceteris paribus is impractical in the real world?

You're saying there's a chance that ASICS were already priced into the markets!? Shocked

I can believe that.

But I don't think it's far fetched to think that a new technology will bring down the short term price of bitcoin. I mean, this may be simple minded - but when new technologies make it more efficient to do something, won't the price go down?

The hash rate per watt of electricity will continue to decrease. Meanwhile, it will become more common for miners to put more competitive prices of BTC/$ because more and more miners will be able to accept a smaller ROI due to the competition on the exchanges.

Also, bitcoin in it's CURRENT stage is an inflationary asset. Inflation will continue to remain positive for many more years before official deflation hits. But what do I know - the markets may have priced this in already as well.