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The value of cryptocurrencies is currently comprised of just a 3 components: 1) Speculation 2) Electricity 3) Compute There's going to be volatility.
by blantonl 5y ago
The value of cryptocurrencies is currently comprised of just a 3 components:
1) Speculation
2) Electricity
3) Compute
There's going to be volatility.
- cblconfederate 5y agoIf you could convert between gold and usd at the same rate that one can convert btc to usdt, gold would be just as volatile. Strangely the energy and human cost of gold is rarely mentioned
- rcxdude 5y agoremove 2 and 3 and you have an accurate list. Electricity and compute don't drive the value of bitcoin, they follow it.
- majani 5y agoActually the cost of mining puts a soft price floor on Bitcoin. When prices touch the cost of mining, they face heavy resistance since miners rage quit at that point
- deepserket 5y agoand if miners rage-quit then those who are left will make more bitcoin per unit of energy, thus lowering the cost of mining... rinse and repeat and you can go to 0$$
- rcxdude 5y agoNot really, the supply of bitcoin is, except in the short term (< 2 weeks), independent of the amount of mining effort. And that's all that really matters (especially because there's no single price where all miners stop making a profit, and miners will continue to mine and sell even when they are no longer making a profit just to lessen losses on hardware).
- root_axis 5y agoAlso dark-net commerce.
- dbs 5y agoThe price of cryptocurrencies you mean. Value != Price