Rampion
Legendary
*
Offline Offline

Activity: 1120
Merit: 1000


View Profile Personal Message (Offline)

Ignore
July 16, 2013, 08:04:18 PM


Price isn't driven by miners, but by traders and commodity speculation as has been amply demonstrated elsewhere.


This.

It's obvious that price is not driven by difficulty, but inflation does have an impact on price - at this stage inflation in BTC its non negligible, and its in fact built into the system to pay for the work and costs of mining during the early days of Bitcoin. Thus, looking at growing difficulty and expecting growing price is a fallacy (in fact its the other way around) - but nevertheless Bitcoin is currently inflating at a 12.5% yearly rate, and what miners do with those newly minted coints has inevitably an impact on price.

I believe that there will be lots of newly minted coins hitting the exchanges in late 2013, will just wait and see.

EDIT: in fewer words, wether miners decide to speculate (holding) or to pay for their fiat costs (selling the coins for good) has inevitably an immediate impact on price.