Post
Topic
Board Mining speculation
Re: Miners DUMPING their ASICs
by
amspir
on 07/04/2014, 00:29:16 UTC
Not correct.  The bitcoin network self-adjusts to keep the creation of new bitcoin on schedule.  From an investor's point of view, the creation of new bitcoin has a known, tightly self-regulated rate of creation.
That's technically not correct either. On average 25 bitcoins are created every 10 minutes however that doesn't mean we can't find 5 blocks in 5 minutes adding 125 bitcoins in 5 minutes (Unlikely but possible). It's designed that on average it should be close to 10 minutes but that's not always true. To call it tightly regulated is a bit of an overstatement - it can be a lot quicker or a lot slower.
Compared to the decision making process behind a sovereign centralized bank currency, the rate of creation of bitcoin is much more known and tightly regulated than the creation of USD, for example.