Post
Topic
Board Speculation
Re: Lets talk BTC price over the next few months (downward move imminent?)
by
johnyj
on 26/08/2013, 14:09:58 UTC

Quote
* Supply for bitcoin might drop due to less and less bitcoin income per miner (mass distribution of ASIC devices). If there are 360 miners each mining 10 coins per day, and each of them will sell 5 coins per day, that will be 1800 coins for sell. But if there are 36000 miners each mining 0.1 coin per day, most likely they will hold the coins, instead of selling 0.05 coins per day

That's certainly possible but the majority of network speed was sold to big orders (look at the orderbook distribution on bfl.ptz.ro for example). These are people who are investing and want to make a return on their investment. That requires selling coins. Hopefully people with that much money to spend can afford to hold their Bitcoins for a while and don't have to sell to pay their electricity. But BFL has delayed over a year for lots of early orderers who thought they would be getting a money printing machine and become filthy rich long long ago.

The competition is getting harder every day. In GPU mining era, you could easily spot some large miner with more than 40 mining rigs, over 100G hash power, they received 50 coins per day at a cost of huge electricity bill. Today, same power can run 40 ASIC rigs, but that will only get you 20 coins per day, and the income is dropping quickly. The initial investment in ASIC rigs are much higher than GPU miners,  and if they don't hold on to their coins and wait for a price rally, they will never make it back