Post
Topic
Board Altcoin Discussion
Re: Is Litecoin massively undervalued?
by
DeathAndTaxes
on 03/11/2013, 16:01:04 UTC
The price is the result of supply&demand equilibrium, and not result of electricity wasted.

The price is always the result of supply and demand equilibrium -- but you don't think the cost of production plays into the quantities of a commodity that people are willing to sell for a given price (supply)?

No.  If it was then GPU miners would simply keep mining and sell their coins for $800 per BTC.   Miners have almost no pricing power.   If difficulty gets too high relative to price then some miners will quit and difficulty will go back down.