Post
Topic
Board Bitcoin Discussion
Re: New article: Price as a factor of difficulty
by
SgtSpike
on 14/06/2013, 17:58:55 UTC
You are technically correct, it is a new BLOCK that is generated every 10 minutes.

However, that doesn't change my conclusion:  The is very little correlation between price and difficulty.

Price is determined by the public agreeing on what they think a Bitcoin is worth - nothing else.

And what they think a Bitcoin is worth is partly determined by changes in the difficulty. Not totally, but partly.
I would agree.  As mining becomes more difficult with specialized mining equipment required, people will be more likely to buy instead of mine to acquire the BTC they want.