Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
So is the high price of BTC maintainable?
With the steady increases in the price of bitcoin, I find myself wondering if it will continue.  It seems that most of the activity is with the miner community themselves.  As the price increases, more miners get involved which increases the difficulty which ends up having miners purchase more equipment to keep the profits up.  This seems to have been the latest cycle.  Fortunately there is a limited supply of BTC which will keep it valuable.

My feeling is that the increases are largely due to the hype of crypto currency by the news media which is introducing more common tire kicker / investor newcomers to the fold - myself included.  And yes, it seems that a huge part of the difficulty increases is all this "doubling down" of mining equipment - which because of the massive interest has driven hardware costs up.  I have bought a couple things with crypto - but all mining related.  I am also mining ETH, and cards and power supplies are more than double what they were a year ago.  I am tracking the backlog of BTC transactions, and I think that BTC may not be able to support direct mainstream consumer purchases.  I suppose there are other coins or mediums like the debit card that can consolidate small transactions for a substantial percentage fee.  There have also been announcements about IRA's looking to offer bitcoin as an option, so that will probably help to push crypto-currency into the mainstream as well.  It will be interesting to see how things continue to evolved.
Mike is the president of StrandVision Digital Signage.  He started BitCoin mining in 2017 and soon invested in other crypto-currencies.  Seeing the need, this site was created as a crypto knowledge repository and miner performance tracker.

Forum Jump:

Users browsing this thread: 1 Guest(s)