What do the miners have to say about the price of bitcoin? Of course they are an essential piece in the ecosystem and also their generalized position can cause the price to rise or fall to a greater or lesser extent. More than setting prices, normally, the consequences are seen in them, you just have to look at the map of active nodes as nodes disappear when the bitcoin price is low. Many of them simply disappear because the reward is not enough to cover expenses and obtain benefits.
The miners are related to the price by pure logic. The price of each Bitcoin is represented by its mining value. But its mining value is not always the same. Due to the dynamic complexity in Bitcoin mining, it may cost more or less depending on the competition. Minar has high electrical consumption and those consumptions have a cost. In this way, if demand suddenly skyrockets, mining will be so profitable that many other miners will want to earn money, and by mining the complexity of mining increases, bringing the cost back to what people are willing. to give for each bitcoin, since otherwise it would not be profitable.
This model generates a tug of war that makes the price of Bitcoin always backed by its cost to mine, so the bitcoin has an intrinsic value, and is not FIAT.
Bitcoin is characterized by having, and is one of its best assets, the most powerful computer network on the planet. What would happen if a large part of the mining nodes disappear overnight? Would this affect its price?
Technically, the network would be readjusted instantaneously and follow its normal course, but possibly a similar event would affect the price, due, at least, to the generated mediatic echo.
Halving are curious events, because in theory they eliminate many miners at a stroke because the cost of mining does not compensate, unless the price of the bitcoin is doubled.
But the reality is not so simple. Of course the miners want high prices, their rewards and commissions are perceived in bitcoins, but on the other hand without miners the Bitcoin network loses strength, which in turn, and after a "butterfly effect", makes the price of bitcoin devalue.
We must also remember that a Bitcoin transaction has a commission, and the miners can always determine which transactions they accept based on the commission. In terms of decisions and policies can determine the price of bitcoin.
Warning! This user is on my black list, likely as a known plagiarist, spammer or ID thief. Please be cautious with this post!
To get off this list, please chat with us in the #steemitabuse-appeals channel in steemit.chat.