one cant know if it is cheap or not, because the price is not included in the protocol
bitcoin production price is atm 131 and sold as 351... it seem fair price to me
I'm going to say this makes no sense. 170% is a nice profit margin. If this was the case we would not see the diff level off like it has in the last month.
I would also like to see where you got those numbers from...
here is my calculation :
http://www.coinwarz.com/miningprofitability/sha-256/?hr=1400.00&p=990.00&pc=0.1000&e=Bitstampthe cost of one bitcoin is (just electricity) :
we need 52 days x $2.38 for electricity -----> 52x2.38=123 usd (more or less)
but this is without ROI cost, it only the electricity, and the operator work for free.
PS: @ 1.4 T we need about 52 days to create 1 bitcoin.
In other words, you took one of the costs, and calculated that cost, and then you thereafter concluded that the one cost was all the costs while conceding that you had failed and/or refused to account for any additional costs.
In other words, you have NOT provided a complete and/or accurate accounting for how much it costs to produce each bitcoin.
hmmm... but what if the electricity was free
What if? If the electricity is free then there are more profits; and those are incentives for mining and incentives for dumping coins, but mining costs also are NOT a reflection of the totality of factors that affect current bitcoin prices.
thats why i was sayng the price above 300 was fair, i didnt said that the miner get 140% profit or anything... pls check again
Based on my fairly quick perusal, whatever point(s) your making, those points do NOT seem to be based on very complete cost calculations.... that's my main point in responding to your posts.
btw i want to add that at this usd price point (which btw is irrelevant to future price), people have to sell 1/2 just to pay electricity versus the ideal price of 600 which ppl will just have to sell 1/3.
which in turn increase the number of coin in circulation.
let us all pray that mass adoption happen tommorrow...
amen
I find it a little irritating that you are continuing to build hypothesis and theories based on your incomplete analysis of the cost of BTC based on ONLY the cost of electricity.... which you have also conceded to be an incomplete analysis b/c you are attempting to simplify matters. Accordingly, you seem to be engaged into a simplification that merely is either A) at best, based on a fantasy world or 2) at worst purposefully, spreading FUD.
Second: are continuing to build Mass adoption is NOT "a" necessary solution to advancing current BTC prices. There are enough large bitcoin players who are invested in BTC or who could jump into BTC and upward manipulate BTC prices into the $10k to $13K territory, if they were to want to and with a lot of the current levels of BTC adoption.. Additionally if BTC prices were to spike into that $10k to $13k direction, which surely is possible (but NOT guaranteed), there would be sufficient number of hype to cause new people to find out about BTC and to jump onto the BTC train and to assist with the causing of that upward BTC price trajectory.
Third: Even assuming your fantasy $150 BTC production costs, your point about miners needing to sell 1/2 their bitcoin at the current price to pay for electricity seems to assume that BTC prices may stay in this price range for an extended period of time or that miners are potentially going to go along with a business model in which they are selling currently mined BTC at the current prices. On the contrary, I am of the understanding that a large number of current BTC miners are also speculating about the BTC prices and tend to be fairly bullish about BTC prices and the direction of BTC. Accordingly, a large number of BTC miners would NOT be inclined, in the short-term, maybe even next 6-12 months to sell currently mined BTC at these current prices (of course there are exceptions to any rule and there will be some miners whose hands will be forced and/or who are NOT bullish about the long term direction and/or prices of BTC). In other words, you seem to be engaged in a form of fantasy thinking to be suggesting that a large number of miners are engaged in a practice to sell their BTC at current prices and engaging in a business practice based on such conceptions of current BTC prices being somehow reflective of long term BTC prices.
