The annoying problem with this kind of "study" is that they lead to a second "expert" opinion on price.
You would be amazed how many times I've seen people saying that since the average cost to mine a BTC is 30 000 there is no way in hell Bitcoin could go below this price, since, I don't know, we will break some rule of the universe if we do so.
You would be amazed how many times I've seen people saying that since the average cost to mine a BTC is 30 000 there is no way in hell Bitcoin could go below this price, since, I don't know, we will break some rule of the universe if we do so.
Ya, that sounds really ridiculous, even if you were to very accurately calculate the average worldwide cost for mining BTC, it does not mean the price can't go below that, for many reasons but i will just list two.
1- Newly mined coins make only a fraction of the available supply, if it costs miners 15k it doesn't mean other people who own bitcoin won't sell it for 10k!
2- When the mining cost exceeds a certain level, some miners will drop and thus reducing the global average cost, say it's 15k now, if we fall to 10k in price, enough miners will shut down to make it profitable for the remaining, there will always be someone who mines bitcoin as long as it's the price is above 0, even if price dropped to a fraction of a cent, one guy would be mining it with his old Nokia.
The only number that any asset can't go below would be 0, with the exception of things like oil contracts.
