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cost to hash, in electricity. If the cost of mining is greater than the price of the coin, the miners turn off their hashboards. Some like to think of this as a
by sdf43543t345 8y ago
cost to hash, in electricity. If the cost of mining is greater than the price of the coin, the miners turn off their hashboards. Some like to think of this as a floor, however if everyone turned off their miners the system would fail to produce blocks. The network difficulty will take 2 weeks to adjust, and the miners will start mining again if it is profitable.
- tedunangst 8y agoIf the difficulty adjusts down to make mining profitable, that's because the miner is earning more coins, but each coin is still worth less than before.
- sdf43543t345 8y agoNot necessarily. While there is a positive correlation to hashrate and price, the market sets the value of the coin. Just because miners are making more or less coins does not make them worth less or more. Miners choose when and if they release the coins to the market.