Quote from: dree12 on July 06, 2013, 12:56:47 AM

Quote from: DPoS on July 06, 2013, 12:53:26 AM

Quote from: newguy05 on July 05, 2013, 10:43:02 PM

Quote from: computerparts on July 05, 2013, 10:08:15 PM

As more asics flood the market, bitcoin value will continue to tank

what does asic = increased difficulty have to do with bitcoin tanking?

there are a few things but they lead to the same situation

increased diff by some big miners, instead of increased diff by more people with smaller mining rigs put more XBT into less hands.. what does that do? same thing that the miner makers are dealing with. A few big players with piles of XBT trying to beat the other guy in grabbing what ever bids are out there buying XBT...

if the XBT are spread around smaller piles to more people it would take a pure panic to get everyone to go sell at once.. here you have the prisoner's dilemma... it would be best if both prisoner's don't fess up and the cops have nothing, but usually one will fess up first since they don't know for sure if the other guy will keep quiet.

If the big miners and miner makers all took their time in a slow sell, then it would be best to all.. but since they cant really trust each other they do what they know is good for them right now.. and that is sell as fast as they can

so enjoy the low XBT price until probably next spring when it evens out.. then you got the Winklefools that are going to dump their pile in an ETF that will bring bad publicity. rough times for XBT next 8 months

ASICs being pumped into the market means increased profitability, with revenue in BTC. Basic economics indicates that with higher profitability comes inflation, so currently some inflation is expected. This is a consequence of a healthy economy.

Increased profitability with revenue in BTC for those with asics, and decreased profitability i.e, less BTC for those without asics, and increased cost requirement in BTC for those who want asics.