Reply to post: Re: If it's a bubble, someone blowing really hard

Bitcoin price soars amid technical troubles for exchanges

GeneralCustardpie

Re: If it's a bubble, someone blowing really hard

"The thing is, if it were a bubble then you'd see the price going up without any serious support behind it ... but look at the hash rate on some of the larger mining pools - it's going through the roof. The hash rate is based on people investing in the hardware that supports bitcoin .."

The hardware used to mine crypto currencies has no bearing on the actual "value" of the coin.

The "value" of the coin dictates the hardware people are willing to use to mine the coin, low price - low hashrate equipment due to the power costs.

Value of the coin is dictated on the exchanges based on the same principle of stock markets - what someone is willing to pay.

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