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I am having trouble understand the current BTC market.

Do current (technical) indicators like mining difficulty, hashing power, electricity costs not mean that the price should be trending upwards?

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Do current (technical) indicators like mining difficulty, hashing power, electricity costs not mean that the price should be trending upwards?

So far as I can tell, price of Bitcoin in other currencies is mostly determined by sellers and buyers, not by producers. It is mainly affected by buyer sentiment.

Miners don't really set exchange rates between Bitcoin and other currencies, certainly not directly. They don't even directly set transaction fee-rates - which must have a very limited effect, if any, on exchange rates.


To put it another way, rising electricity costs affect the costs to the US Bureau of Engraving and Printing, but that doesn't significantly determine whether the US dollar is falling or rising in value. The current cost of manufacturing a $10 banknote doesn't affect how many loaves of bread you can buy for old or new $10 banknotes.

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