Relativity speaking what is the price difference between a bitcoin and the cost of mining a bitcoin. Is it over or under valued
If it takes $1000 of hardware and $100 of electricity to mine a bitcoin then it's over valued. If it takes $50000 to mine a bitcoin then it's under valued. How much money does it take to mine a bitcoin?
I have read numerous articles/posts online about the cost of mining a bitcoin. I have also heard at numerous conferences/events that the figure is at circa $4000. (No substantiation offered for this figure, but the figure I have heard muted usually sits around this value). I have often heard it as the reasoning bitcoin won’t drop below $4000 a coin. Whilst I accept there will never be an exact figure for the price due to constantly varying factors ( cost of energy, hardware, laboumanagement, privacy etc etc). I do think we should be able to have an indicative cost/benchmark to create a bitcoin based on existing data. Maybe $4k is the correct figure, I am just interested in how that is calculated. I am not trying to say there is a correlation between the cost of mining the asset V the market value, but it can help give some indication of the “value/cost” for creating the asset, at the point of creation. This obviously won’t factor in any future value or use cases, it is merely a means of measuring the cost of creating the digital asset for use at that point in time, based on the real world consumption costs associated with creating it. Example just taken off Twitter: The correct way to estimate Bitcoin energy usage by ######, not the invalid methodology used by Digiconomist cited in MSM FUD articles. “Annual consumptiom: 35TW/year Capacity: 4000MW % world energy: 0.03% Cost: 1.7B$/year Efficiency gains help offset increased consumption. This gives a total cost of $1,700,000,000.00 for worldwide consumption. “ Based on the above “calculation” that would mean each bitcoin has a creation cost of 1800 (bitcoins mined a day) X 365 ( days per year) = 657,000 Bitcoins a year (2018) $1,700,000,000/ 657,000 = $2,587.52 per bitcoin. Obviously there are a lot of assumptions in the above assessment. -The figure doesn’t include a cost for hardware/maintenance. -The figure doesn’t include any housing or management costs. -The energy $ value makes an assumption of $TW which does change considerably depending on location. Any links or info that would help add some meat to this would be appreciated. Mucho Mucho
Let’s say you don’t factor in the cost of the equipment and only the electrical costs (utility only). If it cost $0.10 per kWhr, what would be the average approximate cost to mine a btc in a pool? Let’s just say you are using a cheapish miner that isn’t the latest power efficient miner on the market maybe last generation. I tried to use the calculator from whattomine.com but couldn’t get a price that looked realistic.
Claim Your Stake (CYS) Mining A Bitcoin Mining Farm With A Membership That Never Ends.
www.cysmining.com Claim Your Stake Mining (Cysmining) will start an ICO 11/1/2017. We will be offering a special ico bonus to the first 1,000 people who register their email on the website. We estimate that our ico will sell out very shortly. For more information feel free to live chat with us on our site, send and email to [email protected] or simply check back 11/1 at http://cysmining.com A quick preview of how the company will operate is that CYS will pay all the expenses out of the mined bitcoin and distribute the rest back to token holders/members minus a 20 percent management fee. We look forward to working with our cryptocurrency community to expand and grow. Everything we will do will be 100% transparent to token/membership holders unlike many icos. Please do not hesitate to ask us questions but we are very busy at the moment preparing for launch so please allow a few hours for response. Sincerely, CYS MINING Team
How Bitcoin Mining Works. Before you start mining Bitcoin, it's useful to understand what Bitcoin mining really means. Bitcoin mining is legal and is accomplished by running SHA256 double round hash verification processes in order to validate Bitcoin transactions and provide the requisite security for the public ledger of the Bitcoin network. 4. Bitcoin Mining Pools. Mining is an extremely competitive game. Even if you buy the best possible miner out there, you’re still at a huge disadvantage compared to professional Bitcoin mining farms.That’s why mining pools came into existence.. The idea is simple – miners group together to form a “pool” so they can combine their mining power and compete more effectively. Bitcoin mining is the process of adding transaction records to Bitcoin's public ledger of past transactions or blockchain. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. Free GPU Bitcoin Mining Software Solution. With Bitcoin, miners use specialist software to solve math problems and are issued a certain number of bitcoins in exchange. Free GPU Bitcoin & Ethereum cloud mining. Start mine daily free BTC and ETH to earn money without hardware. Bitcoin mining is done by private computers. The role of miners is to secure the network and process each Bitcoin . Miners do this by solving a calculation problem that allows them to assemble the transaction blocks (hence bitcoin's famous blockchain).
#bitcoin #mining #2019 👉 Starting Mining with http://www.mineablock.com Is bitcoin mining financially viable in 2019? This is a question that I asked in 2016... Install Raid for Free IOS: https://clik.cc/lZAiM ANDROID: https://clik.cc/I3nBm Start with💰50K silver and join the Special Launch Tournament for a chance... This video goes over my 7 day 1 week Bitcoin Mining experiment. I let my computer Mine for Bitcoin for a week straight, to see how much money I could generat... The virtual goldrush to mine Bitcoin and other cryptocurrencies leads us to Central Washington state where a Bitcoin mine generates roughly $70,000 a day min... For more information: https://www.bitcoinmining.com and https://www.weusecoins.com What is Bitcoin Mining? Have you ever wondered how Bitcoin is generated? T...