Quote from: jonald_fyookball on August 27, 2014, 01:10:31 AM

Quote from: Delarock on August 26, 2014, 08:46:06 PM

Quote

The Citi analysis points to the increased sophistication and cost of mining as a major driver for growth in bitcoin supply.

As mining costs rise, miners come under pressure to sell their freshly unearthed bitcoin to recoup the costs of their investment in equipment. Citi notes that about 3,500 BTC are mined daily, against a backdrop of 60,00010,000 BTC in daily trading volume in recent months. The research note says:

If the miners are a steady source of supply and there is no increase in final demand, we have this overhang of bitcoin being sold in the market. In consequence, we have downward price pressures.

I'm interested in knowing more about this, specifically about the downward pressure caused by miners selling their bitcoin. What type of pressure could this be causing? Anything measurable?

It's a pretty accurate article, but its really nothing new... Downwards pressure has been in effect the whole time.

Bitcoin demand just needs to "hang on" for a few years... As the rewards keep halving, the demand will outpace
the supply... and price will rise. Hold for at least 5-10 years if you're an investor and don't get rattled if the
price drops in next 1-2 years.

A lot of people who want to get rich in a few months entered bitcoin when its price was shooting up. They burnt their fingers in the last bubble.