Author

Topic: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion - page 23090. (Read 26609512 times)

legendary
Activity: 1470
Merit: 1007

It is not compatible. I don't give a shit about that article, or the concept of velocity of money. I have written about that numerous times. Although it can be computed, giving a number, the parameter says exactly nothing of the value of money.

I don't get. At least at its core, this isn't some economical conjecture, this is just what you can or cannot do given a set of constraints on your medium of exchange.

If we agree on a medium that consists of a total of 10 tokens, we know that we'll buy and sell goods worth $100 each day, each transfer causes the tokens used in that transfer to be out of circulation for one day, then there is no way around an associated valuation per token of at least $10, or one of the other constraints has to give in (more tokens, less value transferred, less time before token is back in circulation).

At least to my understanding, velocity of money is essentially a formalization of the intuition behind the trivial example I just gave.

But feel free to correct my lack of understanding on this matter. It's possible that I'm missing something very fundamental here.
sr. member
Activity: 280
Merit: 250
The current average cost of production of bitcoins is in excess of $300. Purchasing a good below cost of production is considered cheap. Make the most, it wont last.


The actual cost is around 90$, for some miners even less.

There are huge upfront costs to be able to mine a BTC for $90.  

Maybe if you are mining in mommy's basement with cheap electricity, but even then you are limited by your electric service.

quite a few people just plug directly into the street power supply or hot wire and bridge over their meter.

Even then the numbers don't add up.

If you spend $1000 on hardware, you'd need about 3 or 4 years of 24/7/365 electricity to break even.
legendary
Activity: 1148
Merit: 1001
things you own end up owning you
Look at the bears go

1-2% decline in price and they start gigglin like a schoolgirl
It's cute Cheesy

True.

Haha.

-28.78% in last 30 days , still funny?

+10000% in 4 years. Yep, hilarious

yes, but did you buy 4 years ago @ $2 ?
legendary
Activity: 2380
Merit: 1823
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legendary
Activity: 1456
Merit: 1000
The current average cost of production of bitcoins is in excess of $300. Purchasing a good below cost of production is considered cheap. Make the most, it wont last.


The actual cost is around 90$, for some miners even less.

There are huge upfront costs to be able to mine a BTC for $90.  

Maybe if you are mining in mommy's basement with cheap electricity, but even then you are limited by your electric service.

quite a few people just plug directly into the street power supply or hot wire and bridge over their meter.
sr. member
Activity: 280
Merit: 250
The current average cost of production of bitcoins is in excess of $300. Purchasing a good below cost of production is considered cheap. Make the most, it wont last.

How did you get this figure of cost of production?


Easily resolved by lowering the difficulty. Next.
legendary
Activity: 3920
Merit: 2349
Eadem mutata resurgo
The current average cost of production of bitcoins is in excess of $300. Purchasing a good below cost of production is considered cheap. Make the most, it wont last.


The actual cost is around 90$, for some miners even less.

Average cost ... reading comprehension problems?
hero member
Activity: 700
Merit: 500
The current average cost of production of bitcoins is in excess of $300. Purchasing a good below cost of production is considered cheap. Make the most, it wont last.


The actual cost is around 90$, for some miners even less.

There are huge upfront costs to be able to mine a BTC for $90.  

Maybe if you are mining in mommy's basement with cheap electricity, but even then you are limited by your electric service.

What are the upfront costs?  Paying losers to promote their scam mining companies in sigs on btc talk?
donator
Activity: 1057
Merit: 1021
The current average cost of production of bitcoins is in excess of $300. Purchasing a good below cost of production is considered cheap. Make the most, it wont last.


The actual cost is around 90$, for some miners even less.

There are huge upfront costs to be able to mine a BTC for $90.  

Maybe if you are mining in mommy's basement with cheap electricity, but even then you are limited by your electric service.
legendary
Activity: 3920
Merit: 2349
Eadem mutata resurgo
The current average cost of production of bitcoins is in excess of $300. Purchasing a good below cost of production is considered cheap. Make the most, it wont last.

How did you get this figure of cost of production?
legendary
Activity: 2002
Merit: 1040
“There are years that ask questions and years that answer.” — Zora Neale Hurston
sr. member
Activity: 422
Merit: 250
The current average cost of production of bitcoins is in excess of $300. Purchasing a good below cost of production is considered cheap. Make the most, it wont last.


The actual cost is around 90$, for some miners even less.
hero member
Activity: 700
Merit: 500
I hope people don't fall for this trap twice in one day and let it hit 200.

So it would be a good time to buy then, instead of sell.

Probably.  It will get pumped 5-20 dollars and then slammed on us again, so if you like games why not  Tongue
sr. member
Activity: 350
Merit: 250
Google adds crypto, and the price goes down  Huh



Price of BTC the currency is not relevant to the utility value of BTC the technology. Google adding crypto speaks to the latter not the former.

Utility doesn't pay the utility company.

They are not mutually exclusive.

Price is everything.

I did not mean to imply that the value of BTC the currency is irrelevant to the network as a whole. Miner's (utility companies if you will) depend on it yes. I was simply saying that the two can't be melded into one in a causation type of relationship.

Fair enough, you have a point.
full member
Activity: 192
Merit: 100
Google adds crypto, and the price goes down  Huh



Price of BTC the currency is not relevant to the utility value of BTC the technology. Google adding crypto speaks to the latter not the former.

Utility doesn't pay the utility company.

They are not mutually exclusive.

Price is everything.

I did not mean to imply that the value of BTC the currency is irrelevant to the network as a whole. Miner's (utility companies if you will) depend on it yes. I was simply saying that the two can't be melded into one in a causation type of relationship.
sr. member
Activity: 350
Merit: 250
Bitcoiners await the coming of wall street like christians await the rapture.

Bitcoin is a cult.  Get on with your lives.

Hmmm, how is it a cult?

Alot of bitcoiners do push it a lot I have to say but since the price drop only true believers are talking about it!
sr. member
Activity: 350
Merit: 250
The current average cost of production of bitcoins is in excess of $300. Purchasing a good below cost of production is considered cheap. Make the most, it wont last.

Warped logic.

When you rent a house, is your rent determined by what the landlord's mortgage is? No - rent is determined by the market. It matters diddly squat how much electricity it cost to create the BTC.

However the landlord can dictate a higher price.

So basically sellers need to raise their prices and buyers should follow.
legendary
Activity: 1281
Merit: 1046
The current average cost of production of bitcoins is in excess of $300. Purchasing a good below cost of production is considered cheap. Make the most, it wont last.

sr. member
Activity: 280
Merit: 250
The current average cost of production of bitcoins is in excess of $300. Purchasing a good below cost of production is considered cheap. Make the most, it wont last.

Warped logic.

When you rent a house, is your rent determined by what the landlord's mortgage is? No - rent is determined by the market. It matters diddly squat how much electricity it cost to create the BTC.
sr. member
Activity: 350
Merit: 250
The current average cost of production of bitcoins is in excess of $300. Purchasing a good below cost of production is considered cheap. Make the most, it wont last.

How did you get this figure of cost of production?
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