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).
How can the cost of production be calculated, it's a nice indicator to know the mid term value of bitcoins.
Costs aren't the same for everyone. Electricity costs change from one place to another. The same for labor, land, taxes, etc.