Post
Topic
Board Bitcoin Discussion
Re: Bitcoin is a commodity market ?
by
franky1
on 14/01/2022, 16:22:54 UTC
you seem to not grasp the value window vs the price..

but then again. in this topic you also failed to grasp
what a pyramid is
what a commodity is
what an asset is

so its either best you go spend some time using google to research economics. or just take some time to re-read things over again, because you either missed some crucial things.. or just unwilling to learn.

if you want to know why miners increase their asics

countries like russia/iceland which have cheap electric and are at the bottom end of the window of $30k can afford to increase hashpower and still profit because the price is above the bottom.

this extra hashpower then means other miners get less reward for their work. meaning their costs increase.
meaning for instance japan/germany at 32cent/kwh have a increase of their cost per coin that would extend above $70k current window top.

also for instance europe/usa have a increase of their cost per coin due to the hash competition that would extend above their $41k cost meaning they are more inclined to buy at $43k if their costs surpassed the price.

some euro-americans already do prefer to buy at $43k now instead of mine at $41k because the effort in buying an asic, setup and having a noisy, warm home 24/7 is not worth it so they would rather pay a slight extra to get coin now rather than mine slowly
you may have noticed with the prices why there is some support stopping it dropping below $40k to head to bottom $30k. and why there is resistance of topping more then $45k to head back to $70k
this is because alot of american miners/traders are hopping in and out of the mine-to-sell vs buy-to-hold threshold of american cost of acquisition support in this price area

also while those in japan/germany($70k cost) are already more interested in buying at $43k rather then mining at $70k+
they are adding to the buy support to keep prices up

and with the bottomline value regions who can sell. as they increase their asics they are less willing to sell and instead hoard for the price to move up due to the value window adjustment

and so the buy support offsets any sell push. and the price moves up.

this then when the price moves up, makes those at the bottom value that can afford to mine no matter what market conditions are, can increase their asics again.. and so the value window adjusts up. and the price within the window moves up/down depending on the individual emotions of different regions

..
i do understand your anger.
its obvious that your jealous, upset, resentful that you didnt get rich from PoS ICO scams, and though that experience set your narrative for what you think crypto economics is like. you now turn to an actual working economic model of bitcoin, but seem to not like the fact that bitcoin has a proper economic structure, or not understand bitcoins economic structure.. and so want to flame war silly stories of how bitcoin must be pyramid, commodity, useless. purely out of spite that you cant get rich for low cents per day cost like you were promised on PoS ICO scam promotions

sorry but bitcoin is nothing like ICO's or PoS coins