The Bitcoin Thread

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garp said:
Difficulty is adjusting lower, though.
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How does the mining difficulty work? My interpretation is that if it becomes easier to mine (lower difficulty) the supply of Bitcoin will be higher in the future thus lowering the Bitcoin the price over a period of time. Also vice versa. I'm guessing the market reacts to it in such a way that the present value of the lower price hits Bitcoin immediately instead of over time.
 
SaiyanZ said:
How does the mining difficulty work? My interpretation is that if it becomes easier to mine (lower difficulty) the supply of Bitcoin will be higher in the future thus lowering the Bitcoin the price over a period of time. Also vice versa. I'm guessing the market reacts to it in such a way that the present value of the lower price hits Bitcoin immediately instead of over time.
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The BTC mining difficulty is set by an algorithm every 2016 blocks mined, based on an average mining time for the previous 2016 blocks, so that the average mining time per block stays at 10 minutes.
 
SaiyanZ said:
How does the mining difficulty work? My interpretation is that if it becomes easier to mine (lower difficulty) the supply of Bitcoin will be higher in the future thus lowering the Bitcoin the price over a period of time. Also vice versa. I'm guessing the market reacts to it in such a way that the present value of the lower price hits Bitcoin immediately instead of over time.
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Well it’s only going to adjust by 3% apparently. The issue at the moment is not so much about supply but where the miners go, and the speed of transaction processing. There’s some kind of dynamic I don’t fully understand TBH between the BCH difficulty and the BTC difficulty adjustments that might cause miners to switch from BTC. But there’s so much FUD it’s hard to tell what is or isn’t significant.
 
So BTC in $ has dropped over the last few days and has been slowing going down the last few hours, plus the Rand has strengthened, yet Luno is closing in an another all time high. :wtf: ?!?
 
I may have timed this poorly but I have just entered the world of bitcoin! Going to be hard to go to bed now...
 
JaseZA said:
I may have timed this poorly but I have just entered the world of bitcoin! Going to be hard to go to bed now...
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Noooo, just HODL and forget that it even exists. Then 5 years from now have another look. :D
 
Voicy said:
Noooo, just HODL and forget that it even exists. Then 5 years from now have another look. :D
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Yeah, buy and hold seems like a good strategy, at least for now. I just got into it a couple weeks ago and have just been trading. I never hold. It requires some effort/time and if I just bought and held two weeks ago I would have gotten almost the same return as I have so far from trading.
 
SaiyanZ said:
Yeah, buy and hold seems like a good strategy, at least for now. I just got into it a couple weeks ago and have just been trading. I never hold. It requires some effort/time and if I just bought and held two weeks ago I would have gotten almost the same return as I have so far from trading.
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Remember:

If you buy, buy at the low price you want for it, not the high price someone else wants to sell it for.
If you sell, sell at the high price you want for it, not the low price someone else wants to buy it for.

(I realize that can be a bit tricky on luno without stop/loss orders to manage your sells)
 
Sensorei said:
So BTC in $ has dropped over the last few days and has been slowing going down the last few hours, plus the Rand has strengthened, yet Luno is closing in an another all time high. :wtf: ?!?
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I call BS on LUNO sorry....
 
Sensorei said:
So BTC in $ has dropped over the last few days and has been slowing going down the last few hours, plus the Rand has strengthened, yet Luno is closing in an another all time high. :wtf: ?!?
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The BTC/USD and BTC/ZAR markets are separate markets. It just means that demand is higher here at the moment. And arbitrage is not very easy, which means that even though it will tend to keep prices in line with global markets, it does so slowly with a lot of scope for variation. Its the same reason why BTC can sell at a 50% premium in Zimbabwe.
 
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garp said:
The BTC/USD and BTC/ZAR markets are separate markets. It just means that demand is higher here at the moment. And arbitrage is not very easy, which means that even though it will tend to keep prices in line with global markets, it does so slowly with a lot of scope for variation. Its the same reason why BTC can sell at a 50% premium in Zimbabwe.
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gut feeling is that rating downgrades are to a certain extend always priced in , "overrated"
No ways that big funds will be stranded with huge losses by an unexpected downgrade.They are not black swans , they are expected.

However political/stupid economic events are closer to black swans in SA: so expect a lot of positioning for bad news over the next few months.First big thing is the ANC conference--can Lame Cyril pull something off?
So : make sure you have access to Luno, some funds in the wallet and buy when Luno price approximates the dollar equivalent in the rest of the world
swop your SA shares for rand hedges
have something offshore
and watch the canaries
 
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