1: How Is Bitcoin Value Calculated?
Bitcoin's value is largely dependent on its supply and the market's demand for it. Its value is also attributed to other factors, such as alternative digital currencies—including their supply and price—availability, and rewards for mining. Intrinsic value can also be estimated by computing the average marginal cost of production of a bitcoin at any given point in time, based on the block reward, price of electricity, energy efficiency of mining hardware, and the mining difficulty.
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