this one is from May/June this year but electricity, hw, labor costs didn't move so much in the mean time. Yes of course, price = demand/supply and value = knowledge but there is also: cost = scarcity = value. All this forms quite an objective circuit :) ... sooo ... China >80% of the hash, and probably as much as the stash and the cash. Of crypto. This shows the bottom around $3500-4000 currently. Yes it is possible to burrow under it for a while but it is exactly like in gold mining the price gravitates around the averaged over the market cost of production. MR = MC. I'll write soon some on these. ...
This is brilliant, thanks. I actually included this same exact infographic in a white paper for a mining startup earlier this year. It's interesting stuff to take into consideration, really important for the community. I will follow you for sure.
Crypto has always been this, huge volatility up and down, one couldn't exist without the other.
I wouldn't be surprised to see bitcoin at 3k eventually and after that slow, slow climb until it catches attention of the masses again and it'll make new highs, but I'd say there's only one such cycle left as the tech finally hits mainstream usage and people know the tech is here to stay just like internet.
eventual death spiral scenario is the price going so low that to initiate avalanche of mining rigs switch offs and abandoning ... don't think that is really possible. BTC is not a price game. It is a true novel tech for scaling transactions. A lot of scaling. Average 300 TIMES lower txs cost than traditional fiat requiring soooo costly reproduction, upbringing, education, qualification and life and activity support, infrastructure for millions and millions of people. Of course machinery and electricity are cheap and cheaper to reproduce. Cf.: Moore's law and Koomey's law.
Thanks for this, it does seem there is room left to fall. Historically, this crash is really not that bad.
this one is from May/June this year but electricity, hw, labor costs didn't move so much in the mean time. Yes of course, price = demand/supply and value = knowledge but there is also: cost = scarcity = value. All this forms quite an objective circuit :) ... sooo ... China >80% of the hash, and probably as much as the stash and the cash. Of crypto. This shows the bottom around $3500-4000 currently. Yes it is possible to burrow under it for a while but it is exactly like in gold mining the price gravitates around the averaged over the market cost of production. MR = MC. I'll write soon some on these. ...
This is brilliant, thanks. I actually included this same exact infographic in a white paper for a mining startup earlier this year. It's interesting stuff to take into consideration, really important for the community. I will follow you for sure.
Crypto has always been this, huge volatility up and down, one couldn't exist without the other.
I wouldn't be surprised to see bitcoin at 3k eventually and after that slow, slow climb until it catches attention of the masses again and it'll make new highs, but I'd say there's only one such cycle left as the tech finally hits mainstream usage and people know the tech is here to stay just like internet.
Unless the turkey's turn is up when thanksgiving is tomorrow..
eventual death spiral scenario is the price going so low that to initiate avalanche of mining rigs switch offs and abandoning ... don't think that is really possible. BTC is not a price game. It is a true novel tech for scaling transactions. A lot of scaling. Average 300 TIMES lower txs cost than traditional fiat requiring soooo costly reproduction, upbringing, education, qualification and life and activity support, infrastructure for millions and millions of people. Of course machinery and electricity are cheap and cheaper to reproduce. Cf.: Moore's law and Koomey's law.