Jerome 19 seconds

“BTC is not a competitor for the USD, but a competitor for GOLD”.

If that’s even REMOTELY TRUE, why are both up HUGE in USD terms and ALL OTHER world currencies since 2012?

BTC is basically monetized electric energy with features such as  1) only being transacted through electronic channel/exchange, 2) can be turned on/off (confiscated) at will by those controlling the code or exchange, 3) has a ledger record for any party who controls the code (including govt’s), 4) could be used to selectively manage behavior at the individual citizen/account level, 5) it’s ‘finite’ characteristic might also be digitally managed (not at this time but when it becomes necessary).

Another question for you Jerome, are global central banks stocking up on Bitcoin or GOLD?

Bitcoin is monetized electric energy sold to the public as ‘having value’ but in reality ONLY because BTC costs money (in electricity cost) to mine.  If mining stops, halving stops and what is BTC’s free float notional value (caveat – without gov’t decree)?

( to see the parallels between the energy cost of BTC vs value of BTC, see my earlier post https://goldtadise.com/?p=681116 )

Consider this:

1) It presently takes 854,400 kilowatt hours (KWH) of electricity to mine a single BTC

https://www.compareforexbrokers.com/us/bitcoin-mining/

2) 1 KWH = 3,412 BTU

3) 1 barrel of Crude Oil = 5,800,640.8 BTUs

https://www.answers.com/physics/How_many_BTU_are_in_a_barrel_of_crude_oil

4) 1 barrel Crude = 1,700.07 KWH’s of electricity (indexed @ BTU’s 5,800,640.8/3,412)

5) It takes 502.6 barrels of Crude energy to create a single BTC (indexed @ KWH’s 854,400/1,700.07).

Nowhere in this calculation so far involves DOLLARS – it’s simple energy equivalency.

Taking WTI crude as “fairly priced” at $58, BTC should only be worth about $29,150.80 ($58*502.6 bbl) in terms of energy equivalency measured in dollars (about 1/3’d its current ‘value’)

If BTC is “fairly priced” at $86,500, 1 bbl WTI crude energy equivalent should be $172.105 ($86,500/502.6 bbl)

So the question is, is BTC overpriced or is WTI under priced and also which best represents the true cost of energy?  And, if they meet in the middle, in which do you want to be positioned?

Charts here show that OIL is still the king of global energy supply.

https://ourworldindata.org/energy-mix