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Technically there is a cost per Bitcoin from the power and other costs that occurred from mining. Some might be not fully lost (GPUs, commodity hardware) but th
by KingMachiavelli 5y ago
Technically there is a cost per Bitcoin from the power and other costs that occurred from mining. Some might be not fully lost (GPUs, commodity hardware) but the kWh and custom ASICs are just a sunk cost.
If Bitcoin goes to $0.01 or even $5, I bet that makes most mined Bitcoins underwater like how pennies and nickels cost more than their face value.
- AnthonyMouse 5y agoNow you're talking about revenue vs. profit. That part of the "value" is still created, it just goes to the power company or the ASIC manufacturer instead of the miner. If you mine $100 worth of Bitcoin, there is $100 worth of Bitcoin created, whether the electricity cost you $20 or $120.
- lottin 5y agoThis is not how 'creating value' works. If you create something that sells for $100 but cost $100 to be produced, you have created zero value, and if it cost $120 you have destroyed value. In economics this is called added value, it's defined as the value of the output minus production costs. The sum of all added value over a period of time amounts to the GDP.