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Originally Posted by e306
dont f%$§&/ing tell me that i didnt do enough research. clearly everyone in this thread knows more about bitcoin profitability than you do.
you can replace "1million years" with "1 year". doesnt make any difference. you wont get any new coins by then, because the difficulty is so high.
You don't even make one god damn bit of sense. Maybe this actually thought out response by someone on the bitcoin forum will help you understand.
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Please allow me to 'sperg out' for a moment. But people need to understand this.
Difficulty and $/BTC are inexorably linked.
Price leads Difficulty, always. Difficulty drives price, never. This relationship has remained constant during all recored history, and it will take a very fundamental change in this relationship for this ever to be any different.
It is very important to understand this relationship if you hope to ever make sense of change in Difficulty and what causes it.
The correlation coefficient of this relationship is .977, which means it is very robust. (a value of 1 would mean it is an exact match)
The moving average is a simple 12 week moving average of price, which always lags the current price. This correlation can be slightly enhanced by applying a special weighting to this moving average. It is not useful for projecting beyond the next increase in Difficulty unless you know what is going to happen to price. However, if you are trying to produce a business plan with contingencies relating to $/BTC and Difficulty you just might find this information useful.
Furthermore, you have to understand currency in the first place. Whenever our government prints off more money, the value of our dollar loses value.
With Bitcoin, their will only ever be 21 million coin in circulation, so if Bitcoin were to succeed, then soon Bitcoins would commonly be traded as fractions like this: 0.00000008 -- This is the max they can be divided into.
With 21 Bitcoins, the price cost of them will ALWAYS be going up just like gold. If the US were to print double of the amount of bills we have today, Bitcoin would go up in double value.
Basically if what YOUR saying is right, then your saying Bitcoin will fail, which it HAS to if what your saying is correct.
I for one don't believe it will fail.
A lot of this is mind-boggling at first to comprehend, but once you actually understand it then you'll stop making your idiotic statements.