Quote from: Alex Beckenham on June 18, 2011, 01:26:13 AM

Quote from: TheGer on June 18, 2011, 12:44:48 AM

Directly no. Indirectly through its psychological effect on those mining coins yes.

Quote from: AbelsFire on June 17, 2011, 04:50:05 PM

Quote from: Vanquistador on June 17, 2011, 04:41:56 PM

I don't get how the price is going down after a difficulty increase... anyone able to englighten me (and others)?

The price of bitcoins is not determined by the difficulty of mining them.

This argument comes up so many times on this forum.

Imagine if the difficulty rose tomorrow to 10,000,000,000,000,000,000.

Do you think miners will want to sell you any coins for today's low low prices?

Or do you think they'll hold out for higher prices since the prospect of them mining more tomorrow is now diminished?

If the difficulty went that high without much higher prices first the price of bitcoin would go to $0. Because the only way that much computing power would be set to mining at current prices is if the owner of the computing power wanted to kill bitcoin. With enough computing power to drive difficulty that high they would succeed.