Topic: What do you think the effects of soaring prices and fiat depreciation is on BTC? - page 3. (Read 399 times)

Just FYI. During recent years world economy had a few serious shocks and it might be that they are the problem and not your "printing spree".


No one is dumping fiat, it is doing fine. There are even many ways of saving your savings without buying volatile shitcoins. It seems incredibly stupid to buy crypto if your goal is just to save your money from inflation.

I tend to read these factors in reverse, which is that the price of bitcoin mining will rise according to the previous factors, which means that the average bitcoin mining will rise and therefore if any correction occurs, it will not last for a long time below that level.


I will use the data here that represents the mining value a year ago

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BTC price is ~ $56,000    -   Price now is ~ $40,000.
Hashrate is ~ 167 EH/s   -   Hashrate is  ~ 191 EH/s

we consider both 5.5¢ and 3.5¢ per kWh costs which mean electricity is 20% more expensive than in January 2021 and price will keep increase by XX% every couple of months.

Production Cost of 1 BTC per ASIC model

using                                         base 24h cost @ 5.5¢/kWh               base 24h cost @ 3.5¢/kWh
Antminer S19 Pro, 110T                $5,778                                          $3,677
Antminer S17 Pro, 53T                  $7,726                                          $4,917
.
.
.
Averages                                      $11,459                                        $7,292

The lifetime cost of an ASIC miner to mine one bitcoin is on average $15,000-$19,000 USD

Source: https://minerdaily.com/2021/how-much-does-it-cost-to-mine-a-bitcoin-update-may-2021/

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By calculating inflation, high prices, oil price, and other variables, we can say the lifetime cost of an ASIC miner to mine one bitcoin is on average $25,000-$30,000 USD

Thus, we can predict that if the demand increases, it is difficult to see levels below 30k, and then the price will rebound quickly.

Based on it, the average stability may be at 40k to 60k, and the peaks are higher than 70k.

On one hand we have the decreasing oil supply that is shooting the oil price up to the moon, that in turn has been increasing the fuel prices up to record highs, that in turn will increase cost of transport that affects cost of everything else from groceries to rent.
We also have the conflicts in major oil rich regions (Russia and Arab countries) that is threatening to escalate and cut off more oil from global supply increasing it to over $200.

On the other hand we have the inflation thanks to money printing spree that governments had over the past couple of years and don't seem to want to slow down. Which means price of everything is rising even more while fiat value keeps dumping.

In my experience when fiat is dumping people will look for a way to keep their purchase power or at least part of it. That is achieved by investment. I believe bitcoin has become a viable investment for many because of its deflationary nature and the fact that it has been performing excellently all these years.

How much do you think bitcoin price is going to rise this year because of all this economical drama?