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RE: Bitcoin Bulls - Silver Lining in China Mining Ban
Hi Lucy
Just to clarify ... the quantity of Bitcoin will not go down. It might slow transaction times but mining is like a horse race. If you own several horses and they all compete in the same race, it is likely that you will win. If you take your horses out of the race, the race will still continue ... just slower horses will win. I used to own a miner when BTC rose from $100 to $1000. If transaction times become slow, it is easier to exchange the BTC to LTC and transmit those. When people do so, the difficulty reduces (allowing the slower horses to be able to compete).
This chart shows that we had a difficulty drop starting in November.
Oh I see. I thought if 70% of mining farms are interrupted (stopped mining due to the ban) it would impact the supply of new Bitcoins in the market (lesser bitcoins being mined everyday). I trust your opinion on the matter. Thank you :)
Bitcoin uses the SHA-256 hashing algorithm with an average transaction confirmation time of 10 minutes. If fewer miners are on the system, the difficulty to calculate the algorithms adjust automatically. As long as one miner is on the system, the network will continue.
That's brilliant!