So you're saying the PoW coin's value is directly corresponding to the production cost of new coins
and even older coins created at a much lower production prices , their price automatically grows to match the highest most recent production cost.
Since the production price per PoW coin continues grow due to increased competition , are you of the mindset that the price per bitcoin will rise forever even to the point where a satoshi is worth $1 million.
You make the point that PoW coin price is directly tied to production cost,
Utility seems to be a non-issue for the value of a PoW coin in your theory,
while a PoS coin can only achieve any price value if it has a utility function as price support.
I heard the current price of Bitcoin ($3,658.82) is below production price for the majority of miners,
is that information false or how is it possible the current market price be lower than production price in your understanding?
TIA
1. no i am not saying the PRICE is tied to production cost
i am saying the UNDERLYING VALUE is linked to mining cost
2. as for the 'majority' of miners. they do not mine at 6cent-20cent electric and paying $1450 for asics.
the majority get cheap electric at under 6cents electric and they get bulk discount or cheap asics due to being the manufacturers or know manufacturers enough to get discounts
those mining with only a couple asics and doing it from their own home are not productive because they have not found the cheapest solutions. they are just hobby mining and not the serious majority. yes you will hear hobby miners complain they are not making profit but out of the millions of asics. hobby mining is not that much
3. the UNDERLYING VALUE is UNDERLYING. it is NOT the price. it is a value below the price that makes up the SUPPORT where people refuse to sell below.
take 2018
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underlying value was at $5800 which is why for the majority of 2018 the price did not go below $5800.
then in october a mass sell off of old S9's occured (cheap second hand prices) making it cheaper to mine as new s15's were also being tested. so the underlying value went down which caused the november 2018 price movement to go down
4. PoS have no ongoing cost. . the initial 'stake' is not a ongoing cost. you dont lose it so you get to keep the 'stake' when you decide you dont want to mine. unlike paying for electric which is an ongoing cost.
5. as for thinking btc should turn to PoS. there are many issues
a. exchanges hoarding many large addresses of 50k coins+ will win block signing the most
b. signing blocks is not as secure as the hashing mechanism of mining
c. hobbiests that just buy PoS coins at speculative prices and stake it have no ongoing cost. but due to exchanges who also have no costs but do have huge hoards, means that hobbiests wont be getting rich.
real world analogy
PoW is people working for the cheque clearing house and getting paid a salary for their labour costs
PoS is people just putting funds into a chequeing account hoping for some interest payment
the thing about PoS is if there are many addresses with 50,000 coins. and then 50k addresses with 1coin each. the stake threshold would be above 1coin so all those holding just one coin wont even meet the stake requirement so wont get anything.
like bank accounts. have below $100 in an account. dont expect any interest. have $500k+ expect to have a high interest account
some argue that PoS has a underlying cost because people need to fund the stake. but they can take the stake back out.
PoS is pure SPECULATION
PoW has underlying costs
in short. any hobbiest who is crying they cant get a good electric/asic deals to be competitive mining PoW.. will also find they dont have the funds to stake(savings account) enough to be competitive PoS
this is why PoS users end up 'pooling' their stake and trusting they will get shares of a pooled address. yet the practice of this is still not a good security for the network nor good self control of your funds
in short. hobbiests that think they can get rich for nothing or from their home PC's doing little work or little effort will be sadly wokn up to the truth that they are not making profit