Post
Topic
Board Bitcoin Discussion
Re: True Value of BTC
by
pooya87
on 29/01/2022, 05:22:40 UTC
focus on the amount it costs to produce 1 BTC in terms of mining costs, what is that value and how do we calculate that?
Bitcoin is not a product that means that bitcoin price is not decided by its production cost.

What you are asking only works for products, like a car for example. They have a production cost and that decides what the finial value of it is. But in case of bitcoin the only deciding factor is the utilities that bitcoin provides and the supply & demand (or adoption) of it.

Even more interesting is that for bitcoin the "production cost" (ie. the mining cost) is decided based on bitcoin's price not the other way around.