Post
Topic
Board Economics
Re: Fundamental Analysis of BTC, is BTC overvalued?
by
ene
on 26/05/2011, 18:02:59 UTC
Ugh, you BTC flag wavers are TOUCHY!  It’s simple economics.  If you can make a BTC worth 9 bucks for 25 cents, and the barriers to entry are very little, then other producers will keep entering the marketplace until the price equals cost, ie perfect competition. If you don't even understand this there isn't any point in talking further.

It doesn't matter how many "producers" are in the marketplace because whether there's one or one thousand, bitcoins are added to the supply at the same rate. 50 BTC/block, 6 blocks/hour.