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The creation rate of BTC is fixed every 10 minutes. More ASIC power does not equal more BTC.


Not quite. The difficulty is set to average that a new block is found approximately every 10minutes. However, if lots of capacity is added all at once, the difficulty might not change for several days, and blocks will be generated at a faster rate during that time, as it is only updated every 2016 blocks.

https://en.bitcoin.it/wiki/Difficulty


Somewhat splitting hairs... it's adjusted to 10 minute blocks, and there's also a huge variability in how frequently they are discovered. Even if the average was 10 min, there are blocks found within the same minute, or with 30+ minute gaps.


Variability wouldn't matter if the average over time was alright. But it's not just spitting hairs: BTC generation is significantly ahead of schedule. https://news.ycombinator.com/item?id=5780861


Creation is indeed fixed and constant, but the supply of BTC within the exchanges isn't. The new owners of these ASIC boxes will find themselves in an excess of supply and they'll quite happily flood the market with this increased supply, or they'll spend the coins at merchants.

Contrastingly other miners with inferior machines will find themselves behind the curve with a smaller source of income.


Agreed... I don't really understand why it moves opposite of gold either. Does that mean that bitcoin is considered a high risk asset instead of a safety asset?


I would say yes, with the volatility of bitcoin, at this stage in its life, it is considered a high risk asset. It doesn't have the historical precedent to be considered a safe asset, like other commodities


Is that just because gold is strongly anti-correlated to the dollar? I don't know for sure, just speculating.


Yup, people are pretty crazy to be paying that much.


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