Quote from: Torque on July 16, 2017, 03:12:31 PM

Quote from: deisik on July 16, 2017, 03:08:53 PM

Quote from: Torque on July 16, 2017, 02:37:53 PM

Like Satoshi said, "The price of any commodity tends to gravitate toward the production cost." Bitcoin and every other mined crypto has tended to prove this out over and over again over the long term.

I guess it also cuts backwards as well

So I could just as well say that "the cost of any cryptocoin tends to gravitate toward its market price"© (you can quote me on this). Really, the costs of mining are ultimately determined by the mined coin price. For example, if the price rises miners can raise their expenses keeping their profit margin more or less the same. In this way, if the price rises quickly, we should soon expect the costs of mining rise too since more miners will enter the competition. And this competition will necessarily reduce profits margins to a minimum, which means costs coming close to market price. As to me, this inference is more correct

Correct.

But again, only with mined coins. The premined/POS cryptos are fked, they have no mining floor to fall back on that is driven by supply/demand economics

In fact, this is basic economics

But you seem to be missing something here. Premined coins are already mined so they are out of the equation completely. What I say here refers only to coins that are currently being mined. In this way, the coins that have been mined in the past (premined coins included) are not part of the picture altogether. It is today's cost of mining that eventually moves closer and closer to today's price. Costs that have been made in the past can even be higher than the current price but they are not considered