Richy_T
Legendary
*
Offline Offline

Activity: 1344
Merit: 1000


1RichyTrEwPYjZSeAYxeiFBNnKC9UjC5k


View Profile Personal Message (Offline)

Ignore
September 28, 2014, 08:36:04 PM

They turn off the miners and use the electric bill money to buy instead. They're in the Bitcoin business, mining is just a tool. That pressure will keep the price up.

Unfortunately, I think the mining business has moved from Bitcoin accumulators to Bitcoin sellers. People saw the $$$ signs and jumped in, pushing the believers aside. This is not necessarily a bad thing but I do believe it has had some effect in dampening the price rise we were seeing.

if few thousands coins mined everyday (~3600BTC) could constantly bring the price down, then maybe the price is not where it suppose to be, the price should be where demand and supply meets but consedering huge volumes because 3600BTC is nothing...

Dumping a million dollars worth of BTC a day into a thinly traded market would have an effect (though not all are, of course). And yes, the price is where it is "supposed" to be (for whatever that means). I'm not "woe is us"ing about it or cursing dumpers. I just think it's a mitigating factor in considering the price history through 2014. In fact, it's possible these miners selling now were also partially responsible for the 2013 rally since some equipment was purchasable for Bitcoin only.