Post
Topic
Board Speculation
Re: It'll be insanity not to buy bitcoin at sub $500
by
MichaelBliss
on 06/09/2014, 04:14:07 UTC
Actual production cost of one single bicoin is aroundt $530-$550. Any price below $500 is a steal. Buy now or regret years later. With difficulty ever increasing miners are getting screwed now cause anyone mining now is running at a loss.

Exactly.  I don't think the day trading speculators have any clue what the cost of production is (they seem to consider lines on a chart and various other less important factors first).


Quote
I think your logic is the wrong way round.
If something costs more to produce than its worth doesnt mean its a good idea to buy the product, just thats it a bad idea to produce it.

Most of the people here never had a business so they don't get it

The miners are already operating on razor thin margins if COGS is $550 and they are willing to sell for $600.  If price drops to $500 then the liability of their inventory will become unbearable at some point.  They would be insolvent & have no choice but to stop mining

Good thing I had several business and aren't one of those "most people" you're referring to.  The point was that the "price" being below cost of production makes it a little less likely that miners would sell at these prices.  I agree, something has got to give, either the exchange rate or the miners (i.e. network).   I'm betting it's the low price that will give, as it has the last 4 times we were in a similar situation.