/biz/ - Business & Finance

>>7371428
Thanks anon. What electricity price did you consider for the calculation?

>>7371622
yep..in iceland its around $1100, most other places around $1800. get some cash ready incase we get that low

Nocoiner japfag here. Your math seems about what I got, but I’m having difficulty valuing the block chain infrastructure of btc on its own. Any ideas?

>>7371764
i don't think it has any value on its own, especially as anyone can create a blockchain themselves.. it holds no arbitrary intellectual property.. would like to hear other views on this tho

>>7372055
Please show your working. The bitcoin difficulty can be adjusted which would alter the cost to mine a bitcoin.

>>7372113
right, i which means if difficulty goes down because mining isn't as profitable, i'd expect the price levels to go down further (duh)

>>7371428
you should only mine with solar panels

>>7372173
right, i which means if difficulty goes up because mining is too profitable, i'd expect the price levels to go up further (duh)

That's the cost for production. Now how should we calculate the free advertisement Bitcoin gets. For example at the Super Bowl. Because that drives up demand.

https://www.youtube.com/watch?v=4HSul1NBFes

>>7371428
i did the math and bitcoin is worth approximately 10x to 1000000x whatever i pay for it at any time that i buy in based on the price i want it to go to adjusted for averate returns of markets. you should buy around there and sell at higher prices.

>>7372247
markets do not allow people to print free money forever, which miners have been doing for the last year. as the ecosystem matures, mining profits will get more narrow.

>>7372173
Mining difficulty isn't based on the price, it's based on the hashing power. Show us the maths moron anon.

>>7371428
you forgot to calculate the shit i dont give faggot.

>>7372055
Thank you. That’s the conclusion me and my people have come up with as well. Our valuation methods assume that btc is a store of value for energy, but that more innovation can be made in blockchain implementation with btc as a peg of some sort. But as you said, even established folks can use the tech. You are a smart man, sir. You will make it.

I did the math and bitcoin should cost 1 cent when I buy it and 1mil when I sell

>>7371663

why would you buy it there if it is fairly valued at that price? there would be no appreciation. you would have to buy under that number and sell at it

>>7372558
Welcome to the real world. What he’s saying that if it’s under that, buy. Over that, sell. You are correct in that nobody should buy above his stated target unless they are making a well informed momentum play.

>>7371428
Isn't labor theory of value obsolete? The cost to produce only concerns the producer, it can still be way above what market is willing to pay (based on the value users get from the product) deeming the whole thing unprofitable.

>>7372414
>>7372439
stay poor

>>7372558
because as we have seen, these markets can behave very irrational at times, so i'd buy at a fair price to hope to gain on the next wave of irrationality

>>7372661
just about anyone can be a producer though, there is no secret sauce here

i did the math and it turns out you are a faggot

>>7372661
It depends. The market is extremely efficient at finding value and self sustainment (lalalalala). We wouldn’t want the water, salt, or airlines people suddenly going kaput.

>>7372711
It's true that making specific good would cost others the same, but say the buyer has other means to that can realize his goal that are far cheaper than the good so it makes no sens for him to pay for or produce it. What matters for buyer is subjective value and business is only profitable if labor value is lower than that. That is why you have to look at boarder context when determinating price, not just cost to produce.

>>7372055
Adoption is a value by itself. Of course you could release a better coin than bitcoin and there are several doing things better already but none reach bitcoin because getting established is hard. Especially when people are committed to one with money.

This is further cemented by the fact that you buy all other coins over bitcoin instead of directly - so bitcoin is the gate which raises it's demand.

>>7371428
Brain damaged cunt Bitcoin will never go to below 3k ever again

>>7371428
You need to account for hardware you gigga nigger

> everybody did the math
> see no math expect a bunch of faggots

>>7371428
I did the math and it turns out OP is a massive faggot

>>7372493
>the conclusion me and my people have come up with as well.

Your plastic waifus are not registered financial advisers, anon.

Nice sunk cost fallacy there dude. Just because you spent money creating something doesn't automatically mean that it has any value.

>>7371428
i did the math and this sounds fake and gay

>>7373002
i plan to start nibbling there tbqh, as the next halving and public's premium could be worth around that much, not to mention lack of efficient mining resources currently available

>>7373024
He did.

OP is a massive faggot claims he did some bullshit math without giving and evidence. Go fuck yourself

>I did the math and a swimming pool full of AIDS blood is worth approx $3000 based on the cost to extract that much blood from AIDS patients, adjusted for 7% average returns of markets.

heads up op it's not the production cost that determines the amount people are willing to pay for something

>>7373389
Interesting metaphor. Thanks.

>>7371428
so what I'm hearing is that, if it falls below $1100-$1400, then bitcoin is actually finished

>>7373355
Cunningham's Law states "the best way to get the right answer on the internet is not to ask a question; it's to post the wrong answer." Too bad for OP nobody here knows the answer anyway,

>>7373389
Yes, but the eternal question: is it diamonds, or semiconductors? What’s the assumption?

did the math based in iceland and ukraine eletricity costs, and actually the correct price is around $ 1800-2300, considering average returns of 10%

>>7373434
I mean, most people I’ve seen seem to be saying $1-2k is the floor

>>7373249
>antminer s9 price is 4000$
>lasts 1 year
>he did
>most people pay 0.2$kw

>>7373434
If miners don't see profitable to mine it we may get stuck on a block that's too hard to solve and shit's fucked.

>>7371428

You mean the price BCH has been at for months?

Cost of mining is fiat based. The price of bitcoin incentives/discentivises the miners, not the other way round.

>>7371428
>Implying that the coins value should only be derived from the cost of mining.
The whole point is decentralization and its potential value. All this energy talk about crypto is trivial.

>>7372336
BUMP FOR JUSTICE

Hold on.
Doesn't this math only work if you assume the miner already has the established infrastructure and just needs to "flip the switch" to get going?
With the massive GPU / ASIC shortage and increasing demand from pc builders and all other consumer demand who have all been cucked out of buying pc parts for the past 14 months I'd put the cost a fair amount higher than $1100. Something in the range of $4,000 sounds a lot more reasonable.

I did the math and it turns out the iPhone X costs only 99$, don't overpay fellas.

That’s assuming that it has intrisinic worth greater than its production costs.

If it costs 1 million dollars to extract an $100,000 deposit of gold no one is going to do it. As the price of gold is not determine by its supply costs but rather the demand for the product and its usefulness.

Thus you would actually have to calculate the benefits of using bitcoin to purchase goods.

>>7371428
I did the math and youre mom gay

>>7371428
I've done the math enough to know the dangers of our second guessing.

>>7371428
I did the math and I'm buying 10 gpus

The only thing that matters is supply and demand.

Who gives a shit if it costs $1,200 to mine if only 1,800 Bitcoins are made that day? You still have everyone else fighting over the remaining 15 million existing ones. The ones who mined for cheap just got lucky.

>>7374561
this

if it costs $99 to make I aint paying for it a cent more

>>7374561
>just bought 100k
Thanks anon!