if gold could be mined in someones back yard with just a spoon and a coffee filter ($2/ounce) the gold prices would not maintain at $1800.. people would sell it down to something like $6
yep with mining costs being say $900+ 'value' and then some speculative overpricing of an extra <100% brings gold to its 'price'
with bitcoin. in germany with $0.38/kwh electric it cost $72k to mine bitcoin. so if they can buy it cheaper than they can mine it for they will
and if china with $0.04/kwh electric it cost $21k to mine bitcoin. so if they can mine and then sell for higher they will*
its this value meter $21k-$72k that is the window of the bottom limit people would dare sell and the upper limit people would dare buy
yes america has a ~cost of $33k per btc uk has a $42k per btc
meaning if the price moved down below $42k UK miners will slow down on mining and go on a buying frenzy
meaning if the price moved down below $33k US miners will slow down on mining and go on a buying frenzy
as its far cheaper to buy it than mine it
these factors are all at play in the background giving bitcoin some background underlying value..
50% strong at ~$37k and 100% strong at $21k
yes the prices above $37k can feel speculative/volatile and full of just pure emotion trading. but there is actually underlying value at play hidden below
..
so play the gold backyard spoon or excavator game
if gold cost $900 because it requires expensive excavators and diesel to mine. is golds supply value 0 or somewhere above $900
yes the speculative 'bubble' is whatever is above $900 where a 2x might seem like a ready to burst bubble thats not sustainable where as a 30% profit is reasonable and of accepted value
so if you live in america knowing you could mine for $33k a coin.. or for a little extra you can just buy it and not have the hassle of setting up hardware and facilities and paying bills continuously.. how much premium would you consider as value and worth paying for a btc
*(mining hardware in the 165exa range is a $15k upfront cost spread over a 9 month ROI plus $1.5k per 1cent electric(i done the complicated maths then simplified it for this demo))
Not to mention that you can mine anonymously if you choose to do so.
You can write off many expenses.
You can push the income forward via buying more mining gear for expenses.
Better yet if you have a property that can use solar power as an improvement mining will allow you to make demand.
Lets say you have a dry goods warehouse for many tractor trailers.
It uses very little power. It has a huge roof.
You can put 1 megawatt of panels on the roof. But you use almost no power. Fill a small section with miners create a power bill big enough to allow the 1 megawatt solar array.
an array lasts about 25-30 years. it pays off in 10 years. unless coins go up an you pay off that array in 2 or 3 years.
So basically btc mining ⛏ has many values do to the power usage it can do.
Btw if you mine for five years on that array and move the miners to a new warehouse you could do it again.
this would allow you to have 2 one megawatt arrays that your mining gear helped to create.
