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Silk Road discussion / Re: Raising BTC prices
« on: February 04, 2013, 02:36 pm »This is sort of what i was looking for - Has mining not proved as cost-effective for those engaged in it? Are there less/more btc in circulation?
Miners are making money, if that's what you're asking.
https://blockchain.info/charts/miners-revenue
https://blockchain.info/charts/miners-operating-profit-margin
Im also curious to see what % of bitcoins are spent on SR, and other websites alike - I mean if you are buying on clearweb, its a hassle to get btc in the first place, why would you bother?
Researcher Nicolas Christin estimates $1.2 million in monthly SR seller revenue, so you just have to figure out how much fiat currency is converted to BTC per month. That's hard to determine because there are so many ways of buying bitcoins, and you don't know from analyzing the block chain which are purchases (or conversions from fiat currency to BTC) and which are just bitcions moving around between addresses. It's trivial to determine the transaction volume (ie, BTC moving between addresses) but lots of that activity is people moving BTC around to mix it, obscure it, etc., and that doesn't represent purchases of BTC.
Methinks for one its speculators that are buying them in hopes of making a profit
Yes, I think it's mostly speculators, various anarchist types who support non-state sponsored currency, and people buying illegal things.