https://www.merkle.press/2018/05/bitcoin-price-has-hypothetical-value-of.htmlBitcoin Price Has Hypothetical Value of $1,800: Federal Reserve Report
Although Bitcoins do not possess any real intrinsic value, from a commodity valuation perspective, we can estimate a hypothetical value based on its production costs. Recent estimates regarding the energy involved in mining a single Bitcoin by professional energy-efficient mining rigs put it at about $1,800 when mined in China (where 80% of the currently mined Bitcoins originate).
I said a few month back around $2k to mine 1 og btc...
Probably going to go lower than that ( $800-$1400 possible )
The energy is obviously not the only cost of mining, so his hypothetical value is far from realistic.
To mine 1 BTC with 1 Antminer S9 one needs 1223 days at constant (=current) difficulty.
The energy used during that time would be ~40k kWh (cost ~ $2000 at $0.05 per kWh).
S9 price is ~$900-1000, so energy + miner would be $3000, and then there're other costs, like employees, buildings, HVAC, repairs, etc.
True for the average consumer(miner)your prices are probably accurate.
However for industrial scale miners, its not, its alot cheaper.
They buy asics in bulk and get cheaper elec, leading to huge savings.
Also the producers of asics are always ahead.
While average miners use s9, the asic producers will be using "testing" s10 and be creating s11 always remain a few steps ahead of the rest.
Probably true about the equipment prices, but energy at $0.05 is rather low... at least for US and EU, not sure about China and far east in general.
Also, for the average consumer grade miner there're no additional costs of large buildings, HVAC installations and employees, so the costs aren't much different imo.
We probably both right depending on the miner.
I think we can agree the price to mine 1og btc is between $2k - $3500 , def not the $8k some places have been reporting.
Lets say $2700 is an average price ...that price will 100% happen for og btc and
then more panic dumping can take its price lower than $2k, imo
I wonder if Jihan or some other big mining group will tell us the cost for them to mine 1og btc.
Yes, your average is plausible, and... No, I doubt big miners will ever disclose their costs
I know its from crazy John lols but here is a recent comment(dec2017) from him regarding cost to mine a btc..
John McAfee
@officialmcafee
Replying to @MusicalKasparov
The coin itself us a product costing $2,000 to make.
https://twitter.com/officialmcafee/status/938953574729637889?lang=enSome more (interesting) insights on mining from 1000-miners-owner perspective. Apparently, cooling is important but expensive
Using HVAC is the most expensive
Mid-sized miners are going to start turning off around $6800-7000
$2k is the ACTUAL BREAK-EVEN price for the biggest players
https://www.reddit.com/r/Bitcoin/comments/8mrher/ive_been_mining_bitcoin_for_30_months_here_are/