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"assuming similar demand" relies on people believing that they'll be able to sell their BTC at an arbitrary point in the future to realize any profit they've ma
by onion2k 5y ago
"assuming similar demand" relies on people believing that they'll be able to sell their BTC at an arbitrary point in the future to realize any profit they've made - if they don't believe that then they won't buy. Banning bitcoin mining puts a huge negative pressure on people believing that will be the case. It's likely that would drag the price down more than the limited supply will push the price up.
- WorldMaker 5y agoBitcoin mining is also its transaction reconciliation process, so at some point too, it affects their ability to sell BTC at all. That point won't be reached easily at all (the "difficulty" adjustment will try to keep transaction processing rates steady as miners get shut down), but truly global enough ban with no miners means no further transactions may be processed ever. Again, that's not an easy or likely outcome knowing the nature of Bitcoin's intended resilience against it, but it is a possible outcome and knowing it is a possible outcome can indeed affect price today. (Markets take such uncertainties into account.) Bitcoin can't make transactions if it doesn't have miners. Miners are not just for coin production, but for all transaction processing.