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Then you're saying people are acting irrationally or there are other non-marginal costs to consider (i.e. startup costs) in which case you're really saying it's

by jariel 7y ago

Then you're saying people are acting irrationally or there are other non-marginal costs to consider (i.e. startup costs) in which case you're really saying it's >> $1 to mine a BTC. But that's not really the point. Let me put it differently: if it costs $1 to mine $1000 worth of BTC ... then, new miners will flood the market until the cost of mining reaches parity with price. This is not a BTC specific or controversial statement here.

davrosthedalek 7y ago
The argument is that in most markets, this parity is reached by bringing the price down. For bitcoin, it is reached by bringing the cost up. More miners means it gets harder to mine, so it costs more.
- AgentME 7y ago
  >For bitcoin, it is reached by bringing the cost up. More miners means it gets harder to mine, so it costs more. I think this is what you meant, but just to clarify: the cost of mining will go up, not the cost of Bitcoin. (Miners joining or leaving shouldn't directly affect the price of Bitcoin. The same number of Bitcoins exist and get minted regardless of the number or activity of miners, as long as it's nonzero anyway, so miner activity doesn't directly affect the supply and demand of Bitcoin.)