Quote from: StraightAArdvark on June 07, 2016, 06:39:43 PM

Quote from: zimmah on June 07, 2016, 06:22:25 PM

Quote from: DaRude on June 07, 2016, 06:11:13 PM

Quote from: zimmah on June 07, 2016, 03:04:05 PM

Quote from: marcus_of_augustus on June 07, 2016, 01:15:23 AM

Cost of production is doubling in less than a month ... that will set the new floor for bitcoin price to the $840-960 range (at the minimum without difficulty increases) in the medium term.

Cost of production for a monetary good is the economic defence against counterfeiting. While gold is money, and sometimes attracts a monetary premium substantially above it's cost of production, for someone to produce gold "from nothing" they need to expend an equivalent amount of resources to the cost of production. Over long terms the price of the monetary good may be attracted to its cost of production but ultimately that is as cheap as you can acquire it for, as long as it is still desirable as a monetary good. For the same reason the lowest value of fiat paper money is the cost of the paper it is printed on and the ink, i.e. it's cost of production (about a few cents for a $100 bill).

While bitcoin is still valued as a monetary good, that can be transported in minutes across the internet as a final settlement for bearer instruments exchanged on a censorship-resistant network, it still needs to defend against counterfeiting. The cost of production defends against counterfeiting since this is as cheap as you can produce bitcoin. If bitcoin becomes more desirable for other reasons of its utility, such as store of value, medium of exchange (network effect increasing), etc., then it may easily attract a monetary good premium on top of the cost of production, but the cost of production has invariably set the floor for the lower bound on bitcoin prices, as long as it has remained a monetary good.

Bitcoin is still monetising.

agreed, the lower boundary of the rpcie is the production cost.

It could accidentally be below this value for a short time, but never for long.

The upper boundary is pretty much unlimited (limited only by the amount of value we can exchange for it). So the absolute upper value would be everything in the world divided by the amount of bitcoin in circulation. Of course we would never quite reach that value, but that would be the absolute upper limit it could never go above.

Ughh ingenious Roll Eyes

following that logic lets
Step 1: Increase difficulty 10x fold, thus increasing cost of production for all miners 10x
Step 2: Huh

Step 3: Bitcoin to da moon???

Just have to somehow get the note to investors for them to check the current productions costs before they decide the utility value of BTC and how much they should be willing to pay for BTC

A transaction has 2 sides, a buyer and a seller

Let's assume some people sell for less than the cost of production, eventually they will run out of coins to sell,

No, they won't run out of coins to sell. If the people who own the (what, 16 million?) coins mined up to date, *those coins don't disappear*. They could be sold again and again, at a lower or higher price. Because that's how money works.

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and the only new coins on the market will be either coins that were bought before and resold (usually t a higher price, because no one would like to sell for less than they bought for, unless forced to do so).

Remember BBQ coin? Who forced the shrewd BBQers to sell their precious at a loss? How is it possible that BBQ-flavored ~~monopoly money~~ asset with artificially limited supply is now worthless? According to you, it can only go one way -- to the moon!

Why would you buy a coin just to sell it at a lower price?

If enough people do that, sure the price will drop, but ti doesn't make any sense to do that, so seriously, why would that happen on a large scale?

It won't happen on a large scale, because it's unprofitable.

I don't know what happened to BBQ coin and i don't care, because bitcoin isn't the same as altcoins. Bitcoin has utility, altcoins are often just a get-rich-quick scam.