Post
Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
Killerpotleaf
on 13/01/2017, 00:16:42 UTC
One reason price might follow difficulty is that mining should not be too profitable (because nothing should be too profitable, the world doesn't leave free money lying around). Therefore the price of Bitcoins can't rise too much above the cost of mining (counting equipment depreciation among the costs of course). The cost of mining is proportional to the difficulty (approximately). Therefore we might expect to see price proportional to difficulty.
...

Hal Finney, November 30, 2010, 09:46:21 AM

... Message from the future ... Smiley
dif has more than tripled in the past year, while price has doubled.