The price of any commodity tends to gravitate toward the production cost.
In Bitcoin, the difficulty provides a means to gravitate the production cost towards the price.
Topic: How much does it cost to produce one Bitcoin? (Market Value Comparison) - page 3. (Read 11724 times)
January 08, 2014, 07:20:04 AM
In Bitcoin, the difficulty provides a means to gravitate the production cost towards the price.
January 07, 2014, 06:13:57 PM
I just stumbled upon Satoshi's famous quote ...
"In the absence of a market to establish the price (of bitcoin, estimates) based on production cost is a good guess and a helpful service (thanks). The price of any commodity tends to gravitate toward the production cost. If the price is below cost, then production slows down. If the price is above cost, profit can be made by generating and selling more." Feb. 21, 2010 Satoshi Nakamoto
... and asked myself: What is the current cost of production of one Bitcoin?
I found the following figures:
"According to Blockchain, over the last 24 hours Bitcoin miners used an estimated 135,950.77 megawatt hours of electricity." That is round about $195.000 a day. Daily there are 5.000 new Bitcoins mined. So that would equal to $39 cost of electricity per Bitcoin. Far away from current market price. Sure, to "produce" a Bitcoin you need hardware.
So the cost of hardware is the big unknown to calculate the real cost of production. And here you - fellow Bitcoin Enthusiasts - come into play:
Do you know reliable cost figures for mining hardware like price, operating lifetime and so forth to calculate the cost to produce one Bitcoin (and therefore get comparison to the current market value of a Bitcoin)?
Thanks,
Bitone
"In the absence of a market to establish the price (of bitcoin, estimates) based on production cost is a good guess and a helpful service (thanks). The price of any commodity tends to gravitate toward the production cost. If the price is below cost, then production slows down. If the price is above cost, profit can be made by generating and selling more." Feb. 21, 2010 Satoshi Nakamoto
... and asked myself: What is the current cost of production of one Bitcoin?
I found the following figures:
"According to Blockchain, over the last 24 hours Bitcoin miners used an estimated 135,950.77 megawatt hours of electricity." That is round about $195.000 a day. Daily there are 5.000 new Bitcoins mined. So that would equal to $39 cost of electricity per Bitcoin. Far away from current market price. Sure, to "produce" a Bitcoin you need hardware.
So the cost of hardware is the big unknown to calculate the real cost of production. And here you - fellow Bitcoin Enthusiasts - come into play:
Do you know reliable cost figures for mining hardware like price, operating lifetime and so forth to calculate the cost to produce one Bitcoin (and therefore get comparison to the current market value of a Bitcoin)?
Thanks,
Bitone
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