Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
I voted "disagree" on the poll, because i believe there is more HODLING and real economic activity ( BTC is chasing all kinds of goods services, altcoins, bitcoin company stocks ... etc..) then ever b4. the BTC/USD market just dosnt have a big enough float to paint this "high volume" bottom. we'd need some truly horrific news to see this happen, blokchina.info bugging just dosnt cut it.
@stolfi: its always the chinese.
You said it.
I think you may be right tho this time:
How Discus Fish Became Chinas Largest Bitcoin Mining Pool
http://www.coindesk.com/chinese-mining-pool-discus-fish-bitcoin/
Lemme guess... AM?!
http://www.coindesk.com/chinese-mining-pool-discus-fish-bitcoin/
Lemme guess... AM?!
AM franchises maybe...
Even the Wall Street Journal is considering this rumor:
http://blogs.wsj.com/moneybeat/2014/09/19/bitbeat-more-pain-for-bitcoin-prices-are-chinese-miners-to-blame/
Excerpt: "Still, it is the China theory and it is only a theory that is most intriguing, in part because it explains a striking anomaly in the bitcoin system: That the summer-long price fall has coincided with an explosion in bitcoin mining. Over the same three-month period in which the price dropped from above $600 to below $400, there has been a doubling in the hashrate, a measure of the network-wide computational power with which bitcoin miners compete to solve a mathematical puzzle and win the right to a fresh issuance of 25 new coins at 10-minute intervals. Theres an arms race going on in bitcoin mining. But that begs the question: why would anyone rush to buy mining rigs and pay for ever-greater electricity consumption when both the proportional share and value of the bitcoins you can earn are plummeting?"
Mining company killing the competition.. ^^
That is believable. They are running into a central issue though: if the price falls too far, it takes too many coins to move money. Forget free equipment and free power, if they are escaping currency regulation: to move a USD, it would take 3x more coins today than in November. Since they apparently can't repurchase from exchanges, they can only sell a coin once.
In their own interests, I would expect there is a high price that allows them to both gain coins from mining and have enough coins to move a significant amount of money out of China.
i dont think so if your pockets are deep enough.
you instant dump everything you mine to kill the competition then afterwards when you control a big chunk of the nethash you pump the price.
You are assuming their customers can wait 6 mo-2 years to move money out of China. I don't know the right kind of people, but I would assume they would not want anyone to know that far in advance that they were breaking the law.
One flaw with the story: even if exchanges are monitored, it should still be possible to buy btc using an intermediary (family, friends, etc., as is normal for Chinese doing this). It would be so much simpler than cornering the mining market to generate virgin coins.