Does mining affect the price of Bitcoin?

[Nurudeen]

No mining can never affect the price of Bitcoin because had it been the mining is even easy to do now that when we can be saying whether it's going to affect the price of Bitcoin but right now it's even as tough more than when Bitcoin mining was introduced some years back to people

 

[Profuk57]

I think mining affects the price of Bitcoin in market. If there is a lot of bitcoin produced by Miner then I think the price of Bitcoin will drop to accommodate the large number, but it is less then the price rise. it is just my opinion though I am not an expert in cryptocurrency.

 

[Mastercoded]

It does not, how many bitcoin can an individual mine a day, what about the cost of such Equipment. Mining is not easy and people are easily discorage

 

[Sheun450]

Yes Bitcoin mining affect the price of Bitcoin market price because since Bitcoin market price depends on demand and suppliy in the market so Bitcoin mining will have alot of effect on the price

 

[Debola]

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.

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 happened.

 

[Eodine]

Ever since the inception of the digital currency,Bitcoin, the price has been fluctuating due to demand and supply. Bitcoin mining helps to tap into the demand of bitcoins to pool resources electronically so I think mining also affects the price of Bitcoin.

 

[Adeyoola7]

Contrarily, bitcoin prices are influenced by the following factors: The supply of bitcoin and market demand for it. The cost of producing a bitcoin through the mining process. The rewards issued to bitcoin miners for verifying transactions to the blockchain

 

[Luckboy]

The supply of bitcoin is impacted in two different ways. First, the bitcoin protocol allows new bitcoins to be created at a fixed rate. New bitcoins are introduced into the market when miners process blocks of transactions and the rate at which new coins are introduced is designed to slow over time.

 

[Princeeffiong]

I can't give 100% t my answer but i know in stock trading the volume of traders trading do determine the price of the stock. I also want to believe that mining could also be an influence to increase the value of crypto currency. When the demand is too much there is tendency that the price could go up and when the demand is low the price could come down.

 

[BrolySSJ]

Ever since the inception of the digital currency,Bitcoin, the price has been fluctuating due to demand and supply. Bitcoin mining helps to tap into the demand of bitcoins to pool resources electronically so I think mining also affects the price of Bitcoin.

The supply and demand you see the major factor that affects the price of Bitcoin and other cryptocurrencies however when you are mining cryptocurrency you are increasing the supply that is in circulation at that time and therefore this will seem like the supplies a lot higher in relation to the demand causing a reduction in the price from my point of view.

 

[grabthe.com]

Yes the more that is mined the more scarce it becomes therfore it should increase the amount once its capped.

 

[OderuMiracle]

The supply of bitcoin and market demand for it.
The cost of producing a bitcoin through the mining process.
The rewards issued to bitcoin miners for verifying transactions to the blockchain.
The number of competing cryptocurrencies.
The exchanges it trades on.
Regulations governing its sale.
Its internal governance.

 

[Justin]

I don't know the exact answer but I believe mining affect the price. When more coins are mined, the market will have more supply of the coins, which will decrease the price.

 

[Nomad]

Mining affects the price of bitcoins When a lot of coins are circulation due to mining, the price of coin falls, however, when there is limited circulation, the price becomes high

 

[BrolySSJ]

Mining affects the price of bitcoins When a lot of coins are circulation due to mining, the price of coin falls, however, when there is limited circulation, the price becomes high

I definitely agree with your viewpoint when it comes to how mining can affect cryptocurrency prices and I think that many people are realising that we are getting closer and closer to reaching the limitation of Bitcoin and other cryptocurrency.. And whilst the impact might not be seen now we will definitely see a rising price in the future.

 

[Nomad]

Mining affects the price But mining is not the only reason for the price of bitcoin, there are other factors involved, for example, if a lot of people are buying the price goes up

 

[Senator]

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.

You seem to understand the workings of the mining process involved with the Bitcoin stuff. Mining is not as simple as websites claiming to help you mine cryptocurrency are putting it out there

 

[BrolySSJ]

Mining affects the price But mining is not the only reason for the price of bitcoin, there are other factors involved, for example, if a lot of people are buying the price goes up

In order for the price to go up the amount that has been bought in Bitcoin has to be greater than that which is being mined and also that which is being sold by other investors.

 

[FreshKaz11]

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.

I don't think mining of Bitcoin could affect the price in anyway, because most app that do mining will encourage you to mine that at the end you will get some profit on your Bitcoin but at the end the reward is always small.

 

[BrolySSJ]

I don't think mining of Bitcoin could affect the price in anyway, because most app that do mining will encourage you to mine that at the end you will get some profit on your Bitcoin but at the end the reward is always small.

Mining of bitcoin increases the supply of the coin that is in circulation at that time and as a result there is an offset of the supply and the demand of the coin. Therefore decreasing the price in that way.