Quote from: Shawshank on October 20, 2011, 06:01:25 PM

Quote from: mizike29 on October 19, 2011, 09:28:54 PM

but mining is shot too expensive to mine with electricity and difficulty, and unlike what some people say, you need miners to create bitcoins so you cant ignore the cost of creating a bitcoin in this equation

Mining Bitcoins is virtually the same as mining gold. With the current rise in gold prices, it has become profitable to dig deeper in the earth to extract gold that was not profitable a few years back. Mining gold is REALLY EXPENSIVE too.

Bitcoin can be considered a commodity. If the BTC price rises, miners will be willing to invest higher on mining hardware and electricity. Exactly in the same way as gold. This is one of the reasons why the design of the Bitcoin protocol is so powerful.

Except when you mine gold you do not validate any transactions. Generating a block for bitcoin validates and secures transactions into that block.