This is the reality of the past 3.5 years of bitcoin history. You can use it to benefit yourself. Some coins are close to their creation cost other coins are far away. If you want to truly profit in crypto you must jump from wave to wave, entering and exiting well on each coin. It is the only way.
https://www.amsinger.org/
Or just believe the herds and hodl a $19k bitcoin. The choice is yours to make.
Topic: Bitcoin Creation Cost vs Price: Finding The Real Bottom - page 2. (Read 306 times)
No miner will tell you what their costs are. No one needs to care what the cost of creating a coin is.
The market doesn't give a shit what miners pay. The market can push the cost lower than any miner pays. No miner can afford to hold back the tide. It's their problem and no one else's. If they go bust someone else will replace them.
OP's irrelevant fixation with mining continues.
The market doesn't give a shit what miners pay. The market can push the cost lower than any miner pays. No miner can afford to hold back the tide. It's their problem and no one else's. If they go bust someone else will replace them.
OP's irrelevant fixation with mining continues.
If you are not an institution with millions of dollars to invest, Bitcoin mining is not profitable on longterm for individuals, except if you have completely free electricity.
With every halving the mining difficulty increases and with time is more and more difficult to recover the price of mining devices.
With every halving the mining difficulty increases and with time is more and more difficult to recover the price of mining devices.
And on what numbers do you base this on?
I think it's entirely possible to have a small-scale mining operation, without completely free electricity and still make a profit.
People do manage to buy low quantities of miners on discount, you know. Sure, it might take a couple of months to get your original investment back, but I wouldn't say it's impossible.
Check the Mining Speculation boards and you'll see multiple scenarios where people manage to make money with just a couple of S9's for example.
https://bitcointalk.org/index.php?board=81.0
If you are not an institution with millions of dollars to invest, Bitcoin mining is not profitable on longterm for individuals, except if you have completely free electricity.
With every halving the mining difficulty increases and with time is more and more difficult to recover the price of mining devices.
With every halving the mining difficulty increases and with time is more and more difficult to recover the price of mining devices.
This chart demonstrates the reality that the creation cost represents the lowest feasible price that bitcoin can naturally go.
Or it demonstrates the reality that the price of a bitcoin represents the highest feasible creation cost.
Not quite. The highest creation cost is infinite because you will never mine a bitcoin with a cpu. You can spend trillions in electricity mining with cpus and never get a single bitcoin.
Price above the creation cost is manipulation and speculation.
This chart demonstrates the reality that the creation cost represents the lowest feasible price that bitcoin can naturally go.
Or it demonstrates the reality that the price of a bitcoin represents the highest feasible creation cost.
Historical Price Vs Creation Cost
This chart demonstrates the reality that the creation cost represents the lowest feasible price that bitcoin can naturally go.
This chart demonstrates the reality that the creation cost represents the lowest feasible price that bitcoin can naturally go.
Notes
- The historical creation cost was found with various BTC ASIC’s. The best you could buy at the time (S9’s at various prices until December 2018 when S15’s came out)
- November 2018 there is a massive drop off in price and creation cost. In the 11 days before the price dropped off, the creation cost dropped 33%. This price drop followed the creation cost until the price was halved as the creation cost was halved.
- This historical chart looks very similar to the recent boom.
- Crypto is seasonal, if you want to make actual money in it you must know the creation cost and buy when the price is near it.
- Allowing intelligent investments to mature over time is VERY important in crypto (for example a buy in December 2018 would have been excellent, but it wouldn't have matured for 4-7 months depending on your exit point).
- There is no way to identify the bottom, “bargain” price for bitcoin or any crypto without knowing the creation cost.
You will not be able to know where this market will land if you do not know the current creation cost. Find it on my site here:
https://www.amsinger.org
My masterclass is 100% free and is exceptionally helpful.
Much Love and Hard Work,
Aaron
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