good question from odolvlobo
Why is the mining cost the "fair" value? Also, I have some bitcoins from when it cost $5 to mine a bitcoin. Does that mean that those bitcoins are worth $5?
because i too have coins from that period too
there is a thing called REALISED value
the value of the time of acquiring coin
i have realised value of $6 and also some in 2014,18,22(basically after each correction)
this value measure the OP made, is a bit off.. by not using real world situation to decide ROI, but is supposed to be about the realised value of todays acquired coins. not estimating todays value of all coins of circulation based on past acquisition to set a value today for past coin
also
BTW, the cost of mining and the price are correlated because the price acts as a ceiling on the cost of mining. In general, miners will not mine when the cost of mining exceeds the cost of buying.
VALUE is not the cost of all miners. value is a BASE/cheapest cost of the most efficient miner. whereby its the cheapest(aka value)
where everyone on the planet cannot mine cheaper than that point thus no one would want to sell coins acquired for more, to sell for less. thus becomes a great support
there are many other potential miners that if they mined today they would make a loss. EG those living in japan and hawaii which would be a premium measure
those people are not miners today. they are buyers. after all why would you mine for $118k a coin when you can market buy for 21% of premium
todays numbers are $18k value(cheap).. $118k premium
dont expect markets to want to go below value or speculate above premium
its why 2021 didnt top $75k because that was the premium then (value: $10k premium$75k)
2022 was $15k value 95k premium but the market only speculated $15-$50k
in 2012 it was $3-$40 (value-premium)
the market only trades within that range but never exceeds it