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Topic: Does Mining Equipment & Electricity Cost Not Add to the Market Cap?? (Read 1117 times)

sr. member
Activity: 434
Merit: 250
Why wouldn't, when someone pays 120$ per TH to mine bitcoins, that not add to the market cap of Bitcoin and other coins for instance?

Is base support really much higher than expected due to this?

Mining equipment and electricity cost does not effect the market cap. Maybe we can just consider it as part of our capital but it won't be a factor for market cap. Market cap will depend on the investors or people considering the market
hero member
Activity: 884
Merit: 500
Why wouldn't, when someone pays 120$ per TH to mine bitcoins, that not add to the market cap of Bitcoin and other coins for instance?

Is base support really much higher than expected due to this?

No, miner hash wont add to coinmarketcap, miner hash will accumulate as difficulty factor in bitcoin, you can read at coinwarz for difficulty. coinmarketcap only accumulate price movement in a cryptocurrency, when some coin getting huge buy market so it will listed in coinmarketcap with better number
legendary
Activity: 4256
Merit: 8551
'The right to privacy matters'
Equipment cost and electric cost have ZERO effect on market cap, and have no direct input into price at all.

 Price effects the profitability of mining, NOT the other way around.

 The same number of coins are generated no matter how many - or how few - miners are competing for the block rewards and block fees - and number of coins generated is what affects price, NOT how difficult it is to mine those coins.


 Market cap is STRICTLY the product of the number of coins in existence times the price per coin.



https://coinmarketcap.com/


1   Bitcoin Bitcoin   $40,521,038,263   $2468.65       16,414,250 BTC     


@op   market cap  by definition is coins x price   so 2468 usd x 16,414,250 coins = 40,521,038,263

your question is the same as asking why does 2 x 4 = 8     the answer is by definition it does.

basically the human race agrees to it!   amazing we humans can actually agree to some things.


as to the cost of the gear to mine btc  

Hash rate is 5,094,526,985 gh  is about

410,000 s-9s  so say 1132 + 108 psu + 130 shipping = 1370 usd

so

410,000
    1,370

561,700,000   say 600  million in gear
legendary
Activity: 1498
Merit: 1030
 Equipment cost and electric cost have ZERO effect on market cap, and have no direct input into price at all.

 Price effects the profitability of mining, NOT the other way around.

 The same number of coins are generated no matter how many - or how few - miners are competing for the block rewards and block fees - and number of coins generated is what affects price, NOT how difficult it is to mine those coins.


 Market cap is STRICTLY the product of the number of coins in existence times the price per coin.

legendary
Activity: 1582
Merit: 1006
beware of your keys.
mining equipment and/or electricity are not counted in the market capitalisation, as they are not relevant to what bitcoin is traded with, ie. fiat. if they were counted in that market cap, including the current traded value of those mining equipment active for that currency, those hash power, the sum of the cap would more likely be half of what Apple gets IMO.
member
Activity: 214
Merit: 12
Why wouldn't, when someone pays 120$ per TH to mine bitcoins, that not add to the market cap of Bitcoin and other coins for instance?

Is base support really much higher than expected due to this?
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