Why $17?? - page 4. | Bitcointalksearch.org

dinzy

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Quote from: BkkCoins on June 30, 2011, 09:26:35 AM

A typical electricity cost now is $1.50 per BTC. This doesn't account for equipment depreciation or time invested, just electricity. Of course, it varies according to your rate and this is based on 0.10 US$/kWH.

We're sitting at $17 because some holders of BTC have arbitrarily decided they won't sell less than that.

Couldn't the same be said for the people arbitrarily deciding they will not pay more than 17 for a BTC?

dinzy

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Quote from: SlipperySlope on June 30, 2011, 08:51:50 AM

There is almost zero spread on Mt Gox because certain active traders were granted zero commissions for 30 days following the security problem. Without commissions to compensate for, bid and ask prices sometimes agree to four significant digits! This situation represents an "ideal" market.

I thought this might be the case too, but the numbers don't really back it. 20k is a low volume. If all the trades were buy at 16.75 and sell at 17.0 then there is only 5,000 USD in value flopping around at the extreme. Of course most trades are closer to the market price and not everyone is trading to make a few pennies on the zero commission. I've personally been doing a couple hundred trades each day(sell, then buy back) not caring if I win or lose a dollar or 10 but trying to see what changes happen near the boundary. Without any great data all I can say is that nothing happens. I would guess that a few others are also essentially buying and selling to themselves too just for shits and giggles and if that is true then the true volume is even lower than 20k. Maybe someone is trying to game it, but the main reason it's so stagnant is that nobody else is doing anything.

BkkCoins

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firstbits:1MinerQ

A typical electricity cost now is $1.50 per BTC. This doesn't account for equipment depreciation or time invested, just electricity. Of course, it varies according to your rate and this is based on 0.10 US$/kWH.

We're sitting at $17 because some holders of BTC have arbitrarily decided they won't sell less than that.

Mobius

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Activity: 988

Merit: 1000

Quote from: flug on June 30, 2011, 07:09:50 AM

Why has the price been hanging around $17 for so long? Is there some market fundamentals I'm missing? Is 17 some significant occult number? is Mister Seventeen toying with us?

Let me consult my magic 17 Ball (1+7=8)

"Looks cloudy - Try again later"

ElectricMonk

newbie

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Quote from: WNS on June 30, 2011, 08:54:50 AM

Quote from: ElectricMonk on June 30, 2011, 08:13:24 AM

Seems like $17 dollars might be the price in kWh to produce a Bitcoin under current conditions?

Not even close.

If current conditions were stable ( they are not, but we are talking about the current conditions) then a miner could expect a 500% ROI on reasonably cost efficient rigs, and not particularly cheap electricity.

The value of bitcoins is currently higher than their cost of production, and if nothing changed in the market it would stay that way for a decade, at which point the block reward would have dwindled to near the price in kWh.

That's good. I'll expect the Bitcoin price to increase 6 fold before stabilising then.

Excellent news!

Show me how you got your 500% ~~and I'll send you some cash and you can keep half of the ROI.~~ Scrap that. I'll just buy more coin.

WNS

newbie

Activity: 39

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Quote from: ElectricMonk on June 30, 2011, 08:13:24 AM

Seems like $17 dollars might be the price in kWh to produce a Bitcoin under current conditions?

Not even close.

If current conditions were stable ( they are not, but we are talking about the current conditions) then a miner could expect a 500% ROI on reasonably cost efficient rigs, and not particularly cheap electricity.

The value of bitcoins is currently higher than their cost of production, and if nothing changed in the market it would stay that way for a decade, at which point the block reward would have dwindled to near the price in kWh.

SlipperySlope

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Stephen Reed

There is almost zero spread on Mt Gox because certain active traders were granted zero commissions for 30 days following the security problem. Without commissions to compensate for, bid and ask prices sometimes agree to four significant digits! This situation represents an "ideal" market.

bitcool

legendary

Activity: 1441

Merit: 1000

Live and enjoy experiments

Quote from: ploum on June 30, 2011, 07:41:58 AM

Might be a big hoarder who decided to cash out at 17$, now instead of later.

If so, should it be reflected here?
http://www.youtube.com/watch?v=9q3UtmhR9G8&playnext=1&list=PL1BC72CA6DBEE5BAE

flug

sr. member

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Quote from: ElectricMonk on June 30, 2011, 08:13:24 AM

Seems like $17 dollars might be the price in kWh to produce a Bitcoin under current conditions?

Perhaps, but mining follows bitcoin market, not the other way round.

bitclown

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Quote from: ploum on June 30, 2011, 07:41:58 AM

Might be a big hoarder who decided to cash out at 17$, now instead of later.

Why would a seller want to keep the price down?

ElectricMonk

newbie

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Merit: 0

Seems like $17 dollars might be the price in kWh to produce a Bitcoin under current conditions?

caveden

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Quote from: flug on June 30, 2011, 07:09:50 AM

Why has the price been hanging around $17 for so long?

It's funny how people adapt their expectations. What do you mean by "for so long"? A couple months ago the price of 1 BTC was below $1. It's changing damn fast.

phatsphere

hero member

Activity: 763

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Quote from: qed on June 30, 2011, 07:32:36 AM

http://mtgoxlive.com/orders

It's always better to enable the "oneaxis" version of this:
http://mtgoxlive.com/orders?oneaxis;ratesoff
then you can see better which side is "stronger".

killer2021

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Merit: 10

I'll explain what is going on a little later. At the moment, its top secret

None the less though, having the price stable at 16.80 isn't a bad thing. Stable bitcoin is good for bitcoin businesses. Now you can buy and sell your goods/services and know that bitcoin price will remain around 16.50-17.00 at least for a couple days.

Probably won't be like that forever, unfortunately.

Long term bitcoin has good potential for growth.

cbeast

donator