Dude, there is NO CORRELATION between price and difficulty period lol. Price got pumped last year due to hype and good news from media. That seems to have died down for now.
If there is a correlation, dash price needs to be 2-3 times higher than it is now due to the difficulty's phenominal rise. Antminer D3 will then make some significant profit instead of wat it is doing now.
Sorry to say that but you might be wrong here because there is some correlation between price and difficulty. It may indeed take some time to get established and revealed, especially when there are huge price swings in the short term. Nevertheless, if the price goes up in the long term, new miners will join the club, and the rise in difficulty will definitely follow after some adjustment period until profitability sets at some typical value.
On the other hand, when the price goes down, it becomes less profitable or just no longer profitable to mine for some or most miners, they fall off, and difficulty goes down too. Obviously, it is not as simple as it looks for there are a lot of factors at play here. Volatility is likely the most important one of them, which massively complicates the matter, but certainly not the only factor. Another likely factor is that miners may be mining at a loss for some time expecting the price to rise in the future.
Dude, there is no correlation. Tbat is just u thinking someone is looking out for u lol.
More miners = higher difficulty
Price has nothing to do with difficulty
Price may have nothing to do with difficulty but difficulty definitely has everything to do with price. When will there be more miners - when the price rises or when the price falls long-term? Rising prices will undoubtedly increase profitability of mining at the current difficulty simply because the same number of coins mined will cost more, but if profits increase in some field or activity, they will invariably attract a lot of new players.
Therefore, the rise in Bitcoin prices will attract new miners and the rise in difficulty will follow as you say yourself. More miners means higher difficulty. Price is the cause and difficulty is the effect in this case but all causal relationships are necessarily statistically correlated, though the opposite is not always true, of course. It seems like you are looking at one side of the equation or in one direction only.
Dude, u are dead wrong. There is no relationship besides people checking mining profitability before a purchase. That doesnt affect much and is made alot WORSE when there are more manufacturers.
Look at dash mining. So many people using the antminer D3 will not break even. Bitmain is nice enough to give us coupons to help some. The most efficient dash miner via innosilicon is also a bad investment because it takes too long to break even for the cost. Dash price has risen about 100% in last 3 months and 200% in last 6 months and Bitmain has stopped selling the D3 and yet, it is bad. This is because there are TOO MANY miners since then.
Everyone looks at the profitability of the coin and orders the miners. The miners come 2 months later from 2 different manufacturers. The difficulty skyrockets when all the miners are online (2 months later) and people realize it will take many months to break even. The problem is that new more efficient miners appear before they can break even and thus, their miner is obsolete.
That is made worse when instead of ordering from 2 manufacturers, miners can now order from 3 manufacturers ....there will be MORE miners that suddenly appear after the 2 month delivery time because there are now MORE manufacturers selling more amounts of machines....
And as someone pointed out that while we buy miners at 1300-2300 USD, the manufacturers can create it at a fraction of the cost, under 1000 USD. There is nothing stopping them from just making more machines and mining it for themselves. Their breakeven is alot faster than any buyer. It is even possible that in future, only asic miner manufactures may be miners. At the moment, it looks unlikely though.