Bitcoin

someprimetime · Post by **someprimetime** » Mon May 11, 2020 11:47 pm

Gotcha. I'm curious how miners are benefitting from lower oil prices, and if that means we see less miners selling off even in lieu of lower block rewards.

nikol · Post by **nikol** » Tue May 12, 2020 6:30 am

> I'm curious how miners are benefitting from lower oil prices

Directly

https://en.wikipedia.org/wiki/Diesel_generator

someprimetime · Post by **someprimetime** » Tue May 12, 2020 6:37 am

You really think some random joe can compete with a well-funded operation or are you suggesting that some of these miners are actually using diesel generators behind the scenes? I want to believe...

nikol · Post by **nikol** » Tue May 12, 2020 7:06 am

Dont know 100% about now but back in 2017news were full of stories about Venezuelans who used subsidized (=cheap) diesel/gazoline to mine. Venezuela was one of the leading mining country by then. I see no reason why this time should be different.

EspressoLover · Post by **EspressoLover** » Tue May 12, 2020 8:45 pm

Can the resident crypto experts weight in. Is there really any fundamental justification for why halving is bullish for BTC (besides simply the fact that people believe its bullish)?

My understanding is that the current rate of seniorage is basically de minims at this point. At least relative to the exchange rate volatility.

Kitno · Post by **Kitno** » Tue May 12, 2020 8:55 pm

@EL if mining capacity is fairly unch then it is bullish, no?

That is to say the system is now economically viable (transactions fees charged by platforms & mining costs/efficiency). Given this was a known event few are likely to have switched off overnight but slowly decreased.

I would think the greater risk is a false sense of security with low energy prices. That surely is a greater system risk?

Its Grisha · Post by **Its Grisha** » Tue May 12, 2020 9:16 pm

Anyone come across any thoughtful research on how btc moves? The observed jump risk seems massive relative to its "normal" volatility profile. Is this big orders hitting phantom liquidity? I assume if you got far enough to have a huge order to trade, you would execute more carefully. Really feels like some more sinister form of manipulation is happening.

Its Grisha · Post by **Its Grisha** » Tue May 12, 2020 9:16 pm

edit: sorry, double post

nikol · Post by **nikol** » Tue May 12, 2020 9:33 pm

BTC utilizes binary twits schema through twitter pricing engine:

Twit up, twit down

Twit jump is rare.

someprimetime · Post by **someprimetime** » Wed May 13, 2020 12:42 am

Halving is bullish because it means less new coins rewarded per block mined thus reducing inflation. Same thing in a way for ZCash (ZEC), but they started the project later, so it's still trying to "catch up". Same concept though.