Saylor’s Strategy Buys The Dip As Bitcoin Nears Mining Cost Floor
https://www.zerohedge.com/crypto/saylors-strategy-buys-dip-bitcoin-nears-mining-cost-floor
Suggest reading the entire article. My response in the comments.
https://www.zerohedge.com/crypto/saylors-strategy-buys-dip-bitcoin-nears-mining-cost-floor
Suggest reading the entire article. My response in the comments.
Aside from Saylor’s argument between ‘efficient’ miners and ‘less-efficient’ miners supporting the price above the cost of production.
“Ferraioli’s core analytical framework centers on one question: what does it cost to manufacture Bitcoin? The answer creates a natural gravitational floor that has held across multiple cycles. ”
My Take One – without continuous mining (even at losses) and the promise of halving cycles – public interest will wane due to the costs of maintaining the transactio0nal infrastructure causing the value in the ‘wallet’ to decay.
Without the 4 halving cycles (accounting gimic to facilitate ‘scarcity’ and creat demand for more units), BTC at $60k would be worth around $7,500 (60k/(2×4)), and at $120k it’d be worth about $15,000 (120k/(2*4)).
Halving cycles >> https://www.btbjb.com/en/
AI Question: “does halving promote BTC’s value?”
Response:
“Halving can promote Bitcoin’s value by reducing the supply of new bitcoins entering the market, which may lead to increased demand and higher prices if demand remains strong. Historically, Bitcoin’s price has often risen following halving events, although past performance is not a guarantee of future results”
Take Two – There is no law that the value of something is based on it’s cost of production – the true test of whether BTC has any ‘value’ is when mining stops and scarcity or lack thereof become apparent in the market place.
BITcoin is not A STORE OF VALUE – the energy it cost to produce it in the past is WORTHLESS in terms of UTILITY! Basically it exists primarily on excess (read CHEAP) energy waste.
It’s like the person selling an asset – “But I paid this much for it”, WTF cares?
The value of gold IS NOT based on it’s cost of production – it IS A STORE of VALUE due to it’s intrinsic tangible properties UNDERSTOOD GLOBALLY for thousands of years.
If no more gold were mined for the next hundred years – would it still be valuable? and would it likely increase or decrease? again, the value of gold is in NO WAY tied to it’s cost to produce more of it, in fact I’d argue it would increase demand for an already ‘scarce’ asset.
Recall the indisputable properties of MONEY – durability, portability, divisibility, uniformity, limited supply, acceptability, and fungibility.
This is mostly above my limited ability and desire to understand Bitcoin but it is very useful information for those who do care about their Bitcoin “asset” …..sounds dire
Thanks YYZ
I normally don’t dwell on BTC or crypto news however when I see an article like this – tells me they are becoming desperate to defend it as a true ASSET. $60k is like obama’s red-line.
They want people to believe it has the properties of a commodity (ie has utility), when in reality, Tulips have no more utility (to the eye) than BTC (which is notional).
FIAT currency based economies are imploding globally and in desperation mode (fuck their populous) – a day will come when money becomes sound but probably not before a lot of BLOOD is shed.