No coin, let alone bitcoin, knows its cost of production. An individual node/miner is always unaware of it, because a bitcoin network can not independently determine any FIAT representation. Hence, built in anti bubble algorithm is a fallacy.
It doesn't represent fiat, but it somewhat expresses its electricity costs. PoW works as transport of value, it destroys X value in electricity and produces Y value in bitcoin, if by 'knowledge' we mean that information outside of the system is imported into the system, then yes it has it, to some degree. Of course this is not predictive or very accurate knowledge. Bitcoin is a system designed to increase the hashpower behind the network, and consequently its value, the problem is when the users become separated from miners (pools and ASICs). If the initial Satoshi's assumption would have been correct, this would be the anti-bubble algo, just because the userbase would increase proportionally with network hashpower, yet this balance was soon destroyed by pools and ASICs. The anti-bubble algorithm (bubbles form because exchange value exceeds power of costs + artificial scarcity) of course can't know what exactly should the value be, because of the inherent speculative moment of artificial scarcity, yet it knows the costs and it can distribute them.
