Miners are still mining at the price of $265/BTC.
Bears would have you believe that those miners that are "selling all of their bitcoin to pay for electricity" now will be selling all of their bitcoins to pay for electricity when the price is $2650/BTC.
The numbers obviously do not add up, if they can mine now at this price then they can mine and hold at a higher price.
I must ask, how do you come up with these numbers? Seems odd that in Jul of 2014, it cost $500-600 to mine a BTC, but it now costs less, without an appropriate drop in network hashrate, cost of mining equipment, or electricity.
Don't believe me?
Capital expenditure
Theoretically, breaking the 110 million GH/s hashrate down into equivalent KnCMiner Neptune ASIC units (3,000 GH each), this results in approximately 36,670 units, at a price of $9,995 each – a total of $366.5m.
Assuming this has to be spent twice a year, capital expenditure (CAPEX) of around $733m needs to be invested in the network. At the current block reward of 25 bitcoins per 10 minutes, 1,314,900 bitcoins are mined per year. This equates to yearly capital expenditure of $733 m/1.3149m bitcoins = $557.45 per bitcoin.
Using the less efficient CoinTerra miner as a benchmark network average, yearly CAPEX would equate to $659.9m per year, or $501.85 per coin.
For the purposes of this report, I will take an average figure of $530 per coin, or $696.9m.
Operational expenditure
As calculated earlier, yearly electricity operational expenditure (OPEX) for a CoinTerra-average network would be $106.1m, or $80.69 per coin.
Using KnCMiner consumption figures, running costs per coin would be $70.71 million, or $53.77 per coin
For the purposes of this report, I will take an average figure of $67.23 per coin, or $696.9 million.
Total cost
Adding the CAPEX and OPEX figures results in a cost to mine a bitcoin of $597.23, and a total yearly cost of $785.3m. Interestingly, this is the exact bitcoin price at time of writing.
It should be expected that price of bitcoin should grow proportionally with the cost of network CAPEX and OPEX based on hash rate from this point forward.
This goes a long way to explain the cyclical bubble nature of bitcoin’s market price, and gives us insights into local minimum prices after a burst bitcoin cycle bubble.
http://www.coindesk.com/microscope-economic-environmental-costs-bitcoin-mining/