Direct Link Between the Cryptocurrency, Gold and Mining Hardware

kuzetsa

sr. member

Activity: 369

Merit: 250

Printed circuit boards, chips, and all the electrical bits to make everything stick together is not reliant on gold or silver:

Gold is a very poor conductor of heat and electricity, and the current processes for making a circuit board using copper are mature and much more cost-effective.
The poorer mechanical properties of silver, to say nothing working with it safely (more than one silver chemical process produces hazardous by-products) completely offsets any improvement in electrical or thermal conductivity.

Or did I misunderstand the original post?

In what way is there a "direct link" ?

johnyj

legendary

Activity: 1988

Merit: 1012

Beyond Imagination

Price will only drive up the mining cost when it is much higher than the cost, a projection of sharp rise in future mining cost will drive up the price. Current price rally indicated that there will be another big wave of hash power increase in a few months

xxjs

sr. member

Activity: 280

Merit: 250

Quote from: Viscera on August 30, 2013, 11:25:51 PM

Mining Cryptocurrency is the direct connection between the trading value of BTC vs precious metals. As precious metals are required proportionally to what they can achieve in computing power their necessity requires producers to consider it's value relative to Cryptocurrency

Although I'm confident in my conclusion this has only created more questions that I've not yet been able to answer. If you are involved in the creation of mining chips or have some other evidence with regard to the amount of physical gold required that you are willing to share, I would love to hear your input.

How much silver and gold is required to make the most advanced mining units? Should we measure the mining units actual gold, or it's total value relative to some arbitrary Fiat unit?

Something else to consider

Bitcoin Infation vs Time https://bitcointalksearch.org/topic/chart-bitcoin-inflation-vs-time-130619

Thanks for reading

Gold and silver in mining equipment is probably a small part of the cost.

It has no relation to bitcoin price, as price drives cost, not the other way around.

Viscera

sr. member

Activity: 660

Merit: 250

Mining Cryptocurrency is the direct connection between the trading value of BTC vs precious metals. As precious metals are required proportionally to what they can achieve in computing power their necessity requires producers to consider it's value relative to Cryptocurrency

Although I'm confident in my conclusion this has only created more questions that I've not yet been able to answer. If you are involved in the creation of mining chips or have some other evidence with regard to the amount of physical gold required that you are willing to share, I would love to hear your input.

How much silver and gold is required to make the most advanced mining units? Should we measure the mining units actual gold, or it's total value relative to some arbitrary Fiat unit?

Something else to consider

Bitcoin Infation vs Time https://bitcointalksearch.org/topic/chart-bitcoin-inflation-vs-time-130619

Thanks for reading

Topic: Direct Link Between the Cryptocurrency, Gold and Mining Hardware (Read 1029 times)