<story><title>Bitcoin Falls Below $400</title><url>http://techcrunch.com/2014/04/10/bitcoin-falls-below-the-400-mark-down-more-than-60-from-its-all-time-high/?utm_campaign=fb&amp;ncid=fb</url></story><parent_chain><item><author>paul</author><text>Is anyone tracking how much money miners are pulling out of bitcoin on a daily basis? I assume they have to sell some fraction of their earnings in order to pay for hardware and power. This should create a constant downward pressure on the price, since there always has to be new money flowing into the system, but very few people &amp;quot;need&amp;quot; to buy bitcoin in the way that miners &amp;quot;need&amp;quot; to sell (most buying is for speculative purposes).&lt;p&gt;This is almost the opposite of public companies, which rarely issue new shares, and have a constant buy pressure coming from 401k plans and other automatic investment vehicles.</text></item></parent_chain><comment><author>tpeng</author><text>If the market were efficient, it would already price in the dilution from newly minted coins, as it does for share dilution in the stock market (which is actually quite common due to employee stock options). However, every indication is that the bitcoin market is not at all efficient. It is largely driven by speculators playing a greater fool game, not investors who are betting on intrinsic value per bitcoin based on a future estimate of coins outstanding. The result has been a series of manias and panics, which will continue until real buyers enter the market.</text></comment>
<story><title>Bitcoin Falls Below $400</title><url>http://techcrunch.com/2014/04/10/bitcoin-falls-below-the-400-mark-down-more-than-60-from-its-all-time-high/?utm_campaign=fb&amp;ncid=fb</url></story><parent_chain><item><author>paul</author><text>Is anyone tracking how much money miners are pulling out of bitcoin on a daily basis? I assume they have to sell some fraction of their earnings in order to pay for hardware and power. This should create a constant downward pressure on the price, since there always has to be new money flowing into the system, but very few people &amp;quot;need&amp;quot; to buy bitcoin in the way that miners &amp;quot;need&amp;quot; to sell (most buying is for speculative purposes).&lt;p&gt;This is almost the opposite of public companies, which rarely issue new shares, and have a constant buy pressure coming from 401k plans and other automatic investment vehicles.</text></item></parent_chain><comment><author>harryh</author><text>3600 coins are currently added to the system per day. There are currently ~12.6M coins in circulation.&lt;p&gt;So that&amp;#x27;s an increase of .02% per day.&lt;p&gt;This doesn&amp;#x27;t come close to accounting for the price swings we&amp;#x27;ve seen in the last 6 months. There are much larger forces at work. What these forces are exactly is...difficult to determine.</text></comment>