JayJuanGee
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How much alt coin diversification is needed? 0%?


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June 09, 2016, 07:52:03 AM


JJG are you also saying that BTC price depends on the hashrate (production costs) and not the other way around???

I doubt that any of us can paint any kind of accurate formulation of bitcoin prices by simplifying that relationship to  hashrate, but instead BTC prices are likely an ongoing search in terms of mining power and overall market demand and speculation. 

The hashrate will adjust accordingly in ongoing attempts at price discovery, but then the hashrate will also speculate about future price with some investors being better suited to withstand long periods of being incorrect.

 We have speculation on many ends that is not necessarily in equilibrium but in a state of ongoing price discovery and is adjusting all the time with some folks being wrong about their bets and then the market reacting and then individuals and/or companies going into areas based on perceived needs and based on the actions and inactions of others whether that be their mining investments (and hashing power) or other market developments, speculations and demand pressures.