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Question: Would you as a miner buy any bitcoins cheaper (1.5$) than your cost to proudce them?  (Voting closed: June 21, 2011, 10:48:12 PM)
Don't know how to answer... - 7 (33.3%)
YES, will buy low bids - 11 (52.4%)
NO, won't risk losing more - 3 (14.3%)
Total Voters: 21

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Author Topic: Bitcoin price crash response: buy all bitcoins at production cost?  (Read 1727 times)
BombaUcigasa
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June 07, 2011, 10:48:12 PM
 #1

A bitcoin costs around 1$-1.5$ per coin to make.

The question is simple, you know how much it costs you to make a bitcoin (for example considering the market price of 19$, a network power of 4060735.42868 MHash/s for difficulty 567358.22 to sustain coin generation at 10m0s, average power cost of 1Mh/J (you need cooling, infrastructure and account lower performance miners), etc), would you buy any coins that are sold below the 1.5$/BTC price?
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WNS
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June 07, 2011, 10:56:05 PM
 #2

As soon as it's not profitable to mine, the rigs go off. Without miners, bitcoin grinds to a halt, so why would I want to buy in at that point?

As has been pointed out repeatedly, if you are in this for speculation you should not be mining, since the speculation return is better .... as long as the market is performing.

As a miner I make a different bet, that the pool of miners will stabilize at a point where I can make decent money mining, if I can't do that, then I shut down all but one core and leave it for up to a month, if the market does not recover in 30 days, that goes off too, and bye bye bitcoin.

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BombaUcigasa
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June 08, 2011, 11:28:17 AM
 #3

Judging from the few responses, I guess nobody put any thought into their future decision processes. Oh well, live long and prosper...
Ksg89
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June 08, 2011, 11:42:42 AM
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What kind of silly logic is this?
A product value is not defined by its cost to make it.

Bitcoin is very much supply:demand.
Findeton
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June 08, 2011, 11:45:30 AM
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I would buy sooo many of them at that price!  Cool

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stic.man
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June 08, 2011, 11:47:14 AM
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this is why there is difficulty
TraderTimm
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June 08, 2011, 03:43:06 PM
 #7

The parent poster question makes no sense. I'm not buying bitcoin because I care what they 'cost' to make. I buy them because I see value and security, in addition to the pseudo-anonymity it provides. There are many things that are backed by a belief in value versus their intrinsic cost.

The only way I'll stop buying bitcoins is if the entire system isn't functioning. I truly doubt that will occur.



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BombaUcigasa
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June 08, 2011, 07:23:38 PM
 #8

What kind of silly logic is this?
A product value is not defined by its cost to make it.

Bitcoin is very much supply:demand.
It's called emotional attachment, nobody said it is logical in any way. You spend X resources to obtain Y goods. Would you protect your involvement with Y goods by capturing any X resources with a lower value than that of Y goods?

Or better put: you are surclassed by cheap chinese workers that make your product cheaper. Do you continue to make your product in an expensive way, or do you start trading the cheaper version in your business process, assuming both products have the same quality, which for bitcoin is true.
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