Hashrate and price

[czr5014]

I have a hypothetical situation i was thinking about it regards to the price and hashrate. Lets say for this situation, the demand remains the same and the block reward stays the same for this thought experiment. Now lets say brand new mining chips come out twice as powerful. Now the hashrate is double and everything else remains the same. Does this mean that bitcoins are twice as scarce? what would just the hashrate have on the price because i know eventually everyone will get the new chips and it will persist the whole way through the market.

For Liberty,
Charles

[medicine]

I think in this scenario because the block reward is unchanged this means supply is unchanged. You also stated demand is unchanged. If both supply and demand are unchanged than I would think the price will also unchanged. The only variable I see here is who is acquiring these new mining devices. Is it someone who wants to sell every single btc they mine, or someone who wants to hold every btc or something in the middle. This is the only way the supply side may change enough for the price to be effected.

Note: When the network hashing power increases the supply will not change over time because the network will automatically adjust the difficulty of the mining problem every 2016 blocks to continue the 10 minute block times.

That's how I see it.