Quote from: nicetry on July 05, 2014, 04:51:12 PM

Quote from: franky1 on July 05, 2014, 12:48:52 PM

bitcoins true value is not $1 with $640 speculation, meaning bitcoin can drop and stay dropped to $1.. it can swing up and down, but on average it will be at or above mining costs because smart miners will refuse to sell at a lose, thus keping the prices on average above mining costs (excluding the random crackpot that dumps coin for a temporary crash..) but as i say ON AVERAGE the bitcoin value and mining costs do tally..

Franky, just read my most recent post. You need to learn a thing or two about production cost, and what it really took to product ALL BITCOINS ON AVERAGE.

have a read of my post and learn a thing or two about the production cost, and what it really took to produce ALL GOLD ON AVERAGE..

gold 50 years ago was cheap, 100 years ago it was cheaper, its price does meander because there is a 20% speculation/profiteering going on.. the exact same as bitcoin.. between cost of production and demand

so the cost that gold miners sold their gold at is linked to if they used a pickaxe or an excavator, single person or a team of people
so the cost that btc miners sold their btc at is linked to if they used a CPU, GPU, FPGA or ASIC. single unit or server farm of units.

in both cases this was the true value of the item in question.. which over time increases.. then in both cases add on about 20% of speculation/profiteering..

and you may see that true gold value (gold miners sell price) and tru bitcoin value (btc miners sell price) do have a noticeable trends and show a noticeable bases to follow.

i personally do not judge bitcoin by its daily price. i do not base it on its high price. i believe true bitcoin value to be on the weekly, monthly or yearly average LOW PRICE. as being the price to back it by...

so right now i say bitcoin is backed by a mining cost of $500.

bank notes were not 100% backed by gold true value decades as gold prices fluctuated due to speculation/profiteering. today banknotes are not backed 100% by minimum wage as there is fluctuations in that too, such as tax and bank interest rates or fee's for withdrawal.. but in every case of trying to find true value of anything that is backed, their is always a 20%ish variance above proof of work.
gold (miners labour+20% spot)
banknotes(wage+20tax and fee's)
bitcoin(miners costs+20% profitering)

yet its proof of work labour that is what backs all/most things.. not supply and demand

so if im wrong. you tell me what is bitcoin and bank notes backed by and explain it in detail! dont simply pretend to be smarter without actually showing an answer, rather than just trying to prove others wrong.

if your going to say that its just backed by supply and demand, then you need to realise the supply and demand only affects the 20% speculation/profitering.
when there is high demand. it may exceed 20% reaching maybe 300% (as sen at the december spike) and when there is alot of supply and lack of demand, the price would be at the average production cost level (very small or no profit). (as seen last month when cost of mining was in the $400 range and no one was selling below $400).

but on average over a few years it is about 20%