Post
Topic
Board Economics
Re: The Fallacy of Mining Cost and Bitcoin Price
by
drknark
on 26/06/2011, 16:24:33 UTC
Since the difficulty adjusts to keep the supply constant, I don't think that argument is valid. There is no reason for the price to track the difficulty. There are however some reasons why the difficulty should follow the price. When the reward for mining increases, more people are likely to start mining or to expand.