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> Needing more GPUs to mine the same number of coins raises the price. Ridiculous. Price is determined by how much people are willing to buy or sell it at, whi
by jallen_dot_dev 5y ago
> Needing more GPUs to mine the same number of coins raises the price.
Ridiculous. Price is determined by how much people are willing to buy or sell it at, which they decide based on speculation. The amount of GPUs that will be put to the task of mining is dependent on price. Not the other way around.
I could create an alt coin that requires some arbitrarily large number of hashes to mine a single block and receive 1 coin as reward. Yet I cannot command a higher price for it, because no one wants to buy my coin.
- dataangel 5y agoMiners will only sell at prices that cover their costs. Yes you need demand too, but it's a question of equilibrium. If demand is high, price will go up, attracting more miners. But if the cost of energy/gpus goes up, miners won't be willing to sell for the same price as before, which will also increase the price.