/biz/ - Business & Finance

>>555121
Sorry bud

>The price of gold absolutely affects the costs of mining. Before even considering exploration and extraction miners have to account for profitability after calculating out all the costs (which is a lot similar to mining crypto-currencies).

Okay, fair enough.

But what you are saying is that the mining is open to change.

So if the cost of mining follows the price per unit
>>555076
>Because of mining, Bitcoin will eventually settle to how much it costs to mine one on average + a tiny profit.
And you say the price will settle on how much it will cost to mine, do you see how your logic takes you in circles?

The cost of mining is a -lagging- indicator. Meaning the reason hashing and difficulty is going up is because (directly) people are wanting to mine more than ever.

And your point about China mining cheaper. Yes, granted, places where electricity is cheap/free (pretty sure I heard about a solar farm powering one somewhere) will advantage a miner, it won't necessarily advantage a whole country in the same way due to the fact this is global. It's not like precious (tangible) metals where if it's cheaper to mine in Nigeria, the country of Nigeria will get rich off profits/cuts.

>I don't have a problem with the log scale, just how it is being manipulated to try to create a trend out of very little data. The other rallies were insignificant compared to when the bubble burst late last year.

Okay then, I'll put it in a linear graph for you.