Quote:
Originally Posted by moltuae
I think the guy in the video missed a couple of points (though admittedly I didn't watch the entire video). The first being that there are so many sha256 miners out there already, including some massive mining farms, that I think it will take many months and lots of batches before the hash rate increases by a significant percentage from what's already online. And, secondly, you have to take into account the regulatory effect that difficulty has on the price and vice versa. If mining becomes unprofitable because the price is low and/or difficulty is high, miners will either hold (stop selling) or stop mining. The latter will cause a reduction in difficulty while the former will tend to cause an increase in price.
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Agreed. It's going to take a lot of additional miners to make a difference, but I think that it is happening as the rate of minting coins has certainly dropped since Christmas. It'll probably be slower than his estimations.
Also a fair point that the network effectively self regulates, there's definitely a point at which price and how worthwhile mining is to the hashrate. The more people that switch coins or turn off old miners the easier it will get IF it gets too saturated. Miners ARE needed to keep the network secure and the only way to ensure that is to make mining worthwhile etc.
@ainarssems - SNEAKY....I like that. Buy a wad of hashpower and get in fast and early
