Quote from: WNS on June 30, 2011, 12:54:50 PM

Quote from: ElectricMonk on June 30, 2011, 12:13:24 PM

Seems like $17 dollars might be the price in kWh to produce a Bitcoin under current conditions?

Not even close.

If current conditions were stable ( they are not, but we are talking about the current conditions) then a miner could expect a 500% ROI on reasonably cost efficient rigs, and not particularly cheap electricity.

The value of bitcoins is currently higher than their cost of production, and if nothing changed in the market it would stay that way for a decade, at which point the block reward would have dwindled to near the price in kWh.

That's good. I'll expect the Bitcoin price to increase 6 fold before stabilising then.

Excellent news!

Show me how you got your 500% ~~and I'll send you some cash and you can keep half of the ROI.~~ Scrap that. I'll just buy more coin.