Even at today's exchange rate, they would need 1.5 million coins to get those number, definitely a scam.

I guess this is a planned money laundering scheme: Make money transfer to mycoin.hk account and claim the money is lost, get some tax return from government and later receive transfered money at an offshore bank account

Bitcoin is consumed, many people buy some coins and hold it for at least 10 years, and in these 10 years they are disappeared from the network, just like a house bought

Of course from a long term perspective they might get spent some time later eventually, but just like central banks' gold reserve, they could also accumulate more and more and never get spent in generations. A large amount of reserve can serve many other purposes, security for example

If there is a demand for the coin, people will always select the method with lowest possible cost to get coin, which will make the exchange rate very close to the mining cost

Very true, to the end, it is the electricity cost decide bitcoin's value. After a certain degree of consolidation, only the miners without equipment cost (means the equipment cost is already paid back) can stay in the network and mine. Any new equipment investment will cost too much and have too little hope of ROI due to extremely low income (barely make back the electricity), unless they are much better in efficiency. A 20% increase in efficiency will not motivate the upgrading due to equipment cost

At beginning of 2012, bitcoin exchange rate is $5, hash rate is 8TH, for a general GPU miner at 2MH/W, the whole network consumed 4MW

At beginning of 2015, exchange rate is $200, hash rate is 320PH, for a general ASIC miner at 2GH/W, the whole network consumes 160MW

So the exchange rate jumped by 40x and the electricity cost also jumped by 40x

However, since the coin per day now is only half of 2012, it can mean two things: Either the current price is too low and should bounce back to $400, or the daily coin supply on market has not changed too much despite the daily coin generation has been cut by half (Due to more sell-off by centralized mining farms)

Use the heat to melt the snow on 3000+ meter high mountains and use the water to drive some hydro power plant. Of course you would need acres and acres of mining farms to achieve that effect and the electricity generated might not be strong enough to drive them

Interesting, I guess that will really help for the ASIC chips, since air direct blow on the heat sinks. The question is about the rest of the components, for example the PCI-E connectors, they will receive hot air blow out of the case, if they also have a high load, will they burn?

Currently I modified open case have all the ASICs running below 85c at 0.61V, 43db, but I found out that ASICs works better when they reach 100c, I can try this inverted fan setup when I have time

There is a copper base plate, but it is connected to the aluminum heat sink by a layer of thermal compound, without any mechanical binding, this defeated the purpose of that material

Did you see those snows on the mountains in the background? 

This formula exists only academically and it is too simplified, never solve any problem in reality

M means money in circulation. Any money that is put aside as long term saving is not calculated as M. When people start to save money, M in the formula shrink by magnitudes. Another question is which M you are looking at, M0 and M3 are totally different things

V means money flow speed. I could simply transfer the same dollar a million times per second in high-frequency-trading platform, that does not affect anything in economy

Q is GDP, but is Swiss bonds included in Q? In fact lots of today's financial activities are trading foreign capital goods and they are not counted domestically

P is price level. Because Q should include foreign goods, their price are affected by foreign currency exchange rate

This is not a secret, John Law practiced this 300 years ago. Commercial bank do not have right to create money, only central banks can. Just look how FED and other central banks' balance sheet exploded while they acquire large amount of assets since 2008

This trick can even be practiced on gold and I believe that is how those banks accumulated huge amount of gold during a century. But since the amount of gold is limited, once they have bought most of the gold available on market, they could not create more fiat. So they eventually shifted the target to assets, then they could continue with their wealth accumulation at a much faster pace

Bitcoin is too small a problem for them right now, their fiat must survive and that is getting more and more difficult as more people are discovering their scam

I'm afraid, these investors have never seen a single satoshi, just like most of the stock traders never get their hands on a stock. That exchange has never owned any serious amount of bitcoin otherwise their wallet will be easily identified. But the clients might have lost that much money just like in a casino 

I'm afraid by 2020 USD has been replaced by something else, new dollar maybe

My analysis shows that backed money is indeed "out of thin air": As long as you have some spare asset, you can always issue money backed by them to buy more asset, and once you get more asset, you can issue more money, so the quantity of money that you can issue is only limited by the total available asset that you can buy in the whole world

To stop this kind of madness, it should be illegal to issue money backed by assets. If money can only be created by work or paying equal amount of valuables (for example exchange electricity for mining bitcoin), then that money will not create seigniorage

Thanks, I don't even know that I collectively own some airwaves  

I pay tax to government, like an expensive insurance, and then what they do with that money is their business, but just don't say that their properties are owned partially by me, I don't even get a dividend on those returns (if there is any)

Strange logic, how did you reach this conclusion? Chinese miners are not cheap anymore

This is the most strange thing in the world. In fact, the human productivity has increased at least 10 fold during the latest 10 years, using various high-tech and automation technology. However, majority people's life just improved a little bit or even go backwards and still live in a very tight budget. Where are all those added wealth? They all went into the pocket of money printers

This is where my next mining site will be deployed 

A possible road to this collapse is through negative interest. Now some central bank have already lowered the interest to negative territory, discredit their currency, an effort to encourage spending and borrowing. But in fact, the whole country and majority of people are already heavily debt laden and their income is shrinking, they can not take more loans. So this negative interest or money printing will keep going on without any effect, but if it stopped, the whole economy will fall back to recession right away. When the interest reach -5%, it will trigger large wave of withdraw, people prefer to have cash, that will be the bank run day

IBM is going to replace human workers with intelligent machines, and bitcoin will become the currency that machines pay each other