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If it becomes unprofitable to continue mining, and miners physically stop (selling gear etc...), will the change in Target just re-inflate the bubble again furt
by wastedhours 9y ago
If it becomes unprofitable to continue mining, and miners physically stop (selling gear etc...), will the change in Target just re-inflate the bubble again further down? Or have I misunderstood in difficulty/incentive structure?
From here it looks like the flood of market actors with an unsustainable price have created a crash, the flakes will get out of the game (pushing the price south), and then it might begin to get more profitable again?
Not sure what the outcome will be, but looks like a grass-burning point for those with skin in the game.
- roywiggins 9y agoIf nobody wants to buy Bitcoin, it doesn't really matter what the difficulty is to the price.
- wastedhours 9y agoBut don't the same market forces come back into play? Shortened transaction times, "brand name" for speculative buyers, more attractive price. It'll burn a lot of people, but another one born every minute...
- Zamicol 9y agoYes. A price drop will result in hardware going offline, meaning the difficulty should drop.