Does mining affect the price of Bitcoin?

[BrolySSJ]

The price of Bitcoin is dependent on two factors and that is the supply and the demand of the coin. The question that has recently crossed my mind is if the price of Bitcoin is dependent on the number of mining activities that take place for this coin? If you think about it when they are more miners of Bitcoin then the supply of the coin that is in circulation at that point is likely to increase quite drastically. If this is the case and the supplies extremely high and if the demand has remained the same, then wouldn't the value of bitcoin also drop in order to accommodate this?

I'm not sure if I'm thinking about it in the right frame of mind or in the right context, but does not seem to be a direct relationship between mining and the supply of Bitcoin? And will this inevitably affect the value of the coin as well? What do you guys think? Can you please clarify whether this is possible.

 

[Taimoor Jutt]

There are bundles of software which is all about mining, but i don't know and trust on them because how can we take or access too easily to the mining Apps or softwares without cost. May be there will be some apps but I'm not sure about that.

 

[giddy]

As we know by now, when minersprocess blocks of transactions, newBitcoin is created and introduced tothe market. ... Once that cap is reached, miners will no longer be rewarded with new BTC for verifying transactions. When that happens, the halving of block rewards every four years may not impact BTC's price.

 

[Blakejhe06]

Contrarily, bitcoin prices are influenced by the following factors: ... The cost of producing a bitcointhrough the mining process. The rewards issued to bitcoin miners for verifying transactions to the blockchain. The number of competing cryptocurrencies.

 

[Afrinish]

The price of the bitcoin of the two option sone person purchased high value bit coin so scall down loss on the bit coin some person low value bit coin purchased reding the scall high level so loss of the bit coin market bit coin market is very high lwvel internet marketing

 

[Yan]

The price of Bitcoin is dependent on two factors and that is the supply and the demand of the coin. The question that has recently crossed my mind is if the price of Bitcoin is dependent on the number of mining activities that take place for this coin? If you think about it when they are more miners of Bitcoin then the supply of the coin that is in circulation at that point is likely to increase quite drastically. If this is the case and the supplies extremely high and if the demand has remained the same, then wouldn't the value of bitcoin also drop in order to accommodate this?

I'm not sure if I'm thinking about it in the right frame of mind or in the right context, but does not seem to be a direct relationship between mining and the supply of Bitcoin? And will this inevitably affect the value of the coin as well? What do you guys think? Can you please clarify whether this is possible.

So basically you have answered the question for yourself. When there are more miners of bitcoin, the overall quantity of bitcoin will rise which means if the demand for it rises then the supply might be able to meet it and stabilize things, if the supply can't meet the demand the value of bitcoin will rise and if there are more bitcoin than demands then the value will drop.

 

[Seun4luv]

To my understanding when miners process blocks of transactions, a new Bitcoin is created. Once that cap is reached, miners will no longer be rewarded with new BTC for verifying transactions.

 

[BrolySSJ]

As we know by now, when minersprocess blocks of transactions, newBitcoin is created and introduced tothe market. ... Once that cap is reached, miners will no longer be rewarded with new BTC for verifying transactions. When that happens, the halving of block rewards every four years may not impact BTC's price.

What the number of miners that we have been seeing recently, there's a very good chance that we will reach the Bitcoin cap in its supply a lot sooner than we expected to happen. In this case like you said the halving event will not have much of an effect. So indirectly this is an effect that my name is having on the value of Bitcoin.

 

[KURTAULI]

In my opinion 70% of the price of Bitcoin is dependent on manipulation. Who is the main manipulator? Of course Tether. Today, 89% of Bitcoin is mined. When the amount of Bitcoin is further reduced of course the price will increase even more

 

[BrolySSJ]

In my opinion 70% of the price of Bitcoin is dependent on manipulation. Who is the main manipulator? Of course Tether. Today, 89% of Bitcoin is mined. When the amount of Bitcoin is further reduced of course the price will increase even more

Wow this is a very large portion of the Bitcoin that already mined and circulation. Based on this value I don't see there being many more halving events. This is actually a very good point. I did see that in 2018 I think that tether accounted for 80% of the Bitcoin trading volume. At the start of that year it was just 10%.

 

[KURTAULI]

If you are interested I will share a link where you can read interesting information about Bitcoin. Mining block, how many bitcoins are in circulation, when will the next block be created and ETC www.bitcoinblockhalf.com .

This is one of the proofs of how Tether affects the price of Bitcoin

 

[Lascolee]

There are lots of App and software for mining GUI is a typical relied but it take a lot of time to $1 even more than 3months and don't believe one can wait till this time.... Every of us want to make quick money so there are lot

 

[Suba]

Of course mining will affect the price of Bitcoin, because the increase in supply will increase the offering, Bitcoin is mined with a decreased reward rate (halving), so the price does not fluctuate too much.

 

[GoldenLady]

Of course mining will affect the price of Bitcoin, because the increase in supply will increase the offering, Bitcoin is mined with a decreased reward rate (halving), so the price does not fluctuate too much.

So it's the halving that seems to control the amount of Bitcoin that is mined.

This will definitely not allow too many bitcoins to be mined, even if the number of miners increased.

What I'm wondering is what the reward for the miners will be if there's no more Bitcoin to be mined again.

 

[Suba]

What I'm wondering is what the reward for the miners will be if there's no more Bitcoin to be mined again.

Ok, sis, if you want to know what the rewards are for miners if Bitcoin has been mined, of course they (the miners) will get rewarded for each transaction fee, which of course will be bigger than now.

 

[Shivay]

Yes , Mining of bitcoin affects its price because bitcoin's price is dependent of some factors such as demand , which also includes mining . So there are many people mining right now. Keeping so many bitcoins out of the market.

 

[Emma Aneni]

This will definitely not allow too many bitcoins to be mined, even if the number of miners increased. Based on this value I don't see there being many more halving events being taken place.

 

[Akinwale701]

The price of Bitcoin is dependent on two factors and that is the supply and the demand of the coin. The question that has recently crossed my mind is if the price of Bitcoin is dependent on the number of mining activities that take place for this coin? If you think about it when they are more miners of Bitcoin then the supply of the coin that is in circulation at that point is likely to increase quite drastically. If this is the case and the supplies extremely high and if the demand has remained the same, then wouldn't the value of bitcoin also drop in order to accommodate this?

I'm not sure if I'm thinking about it in the right frame of mind or in the right context, but does not seem to be a direct relationship between mining and the supply of Bitcoin? And will this inevitably affect the value of the coin as well? What do you guys think? Can you please clarify whether this is possible.

Yes, it does. Bitcoin mining makes bTC to be available to some people who might not have had any of it without mining. The effect of this on the price of bitcoin is that it reduces the price because there will be much coin in circulation. Hoarding is one big reason why the price of bitcoin is higher.

 

[Kehinde]

“As real-world mining efficiency increases, which is a likely result of competition, the break-even price for bitcoin producers will tend to decrease. Low-cost producers will compete in the marketplace by offering their product at lower and lower prices,” Hayes wrote. But that hasn't happene.

 

[BrolySSJ]

Yes, it does. Bitcoin mining makes bTC to be available to some people who might not have had any of it without mining. The effect of this on the price of bitcoin is that it reduces the price because there will be much coin in circulation. Hoarding is one big reason why the price of bitcoin is higher.

I do agree with you. One says an increase in the amount that is in circulation of a certain cryptocurrency then there's bound to be a price reduction. However, seeing that so many people are, turning to mining it could be that the extra supply is being met with an extra demand as well which is why we are seeing a stable Bitcoin price currently despite many people being involved in mining. Perhaps a limit should be set when it comes to mining to try and maintain a constant flow of supply into the market in the Bitcoin world.