How can the real value of Bitcoin be accurately determined?

[Alpen]

During Satoshi Nakamoto's final days on this forum, the topic of Bitcoin's true value was discussed. I don't remember exactly who suggested equating it to the cost of mining, but this figure has always served as the final price limit from which a long-term upward trend has begun since then.

How can you find out the cost of mining 1 BTC? I use an indicator from Trading View which is based on analysts' and Cambridge's calculations. As you can see from the screenshot, Bitcoin could fall to $59,857, which would represent a loss of 75% of its value from the market high.



It's hard to hear that, isn't it? But in previous crypto winters, losses have been greater than 80%. I was prepared for such a scenario, however, and I have the funds to average out my position, which I will start doing gradually below $80k. I have staked my available BTC coins on the Cryptomus exchange for the duration of the crypto winter.

What is your strategy?

[cryptoaddictchie]

During Satoshi Nakamoto's final days on this forum, the topic of Bitcoin's true value was discussed. I don't remember exactly who suggested equating it to the cost of mining, but this figure has always served as the final price limit from which a long-term upward trend has begun since then.

How can you find out the cost of mining 1 BTC? I use an indicator from Trading View which is based on analysts' and Cambridge's calculations. As you can see from the screenshot, Bitcoin could fall to $59,857, which would represent a loss of 75% of its value from the market high.



It's hard to hear that, isn't it? But in previous crypto winters, losses have been greater than 80%. I was prepared for such a scenario, however, and I have the funds to average out my position, which I will start doing gradually below $80k. I have staked my available BTC coins on the Cryptomus exchange for the duration of the crypto winter.

What is your strategy?

Good breakdown on mining cost has always acted like a long-term floor for Bitcoin, even if price dips below it during heavy fear. My strategy is quite simple. I don’t try to catch the exact bottom and I just scale in slowly as the market gets cheaper. Bitcoin mining isn't advisable for now I think as due to expenses but holding and buying would do good instead and that’s already strong value for long term holders when price average smoothly and healthy. Staking BTC? Be careful on that, it's a Pow so this staking isn't actually staking for bitcoin.

[rat03gopoh]

I don't remember exactly who suggested equating it to the cost of mining, but this figure has always served as the final price limit from which a long-term upward trend has begun since then.

This is what they call the premium price taken when Bitcoin was first publicly traded on the New Liberty Standard. It might have made sense in Satoshi's time, as miners only needed to draw energy from household electricity. The problem is, calculations become more complex as mining difficulty increases. Mining costs are no longer the same for all miners, depending on electricity, efficiency, machine amortization, scale, and financing strategy.

Averaging a position below $80,000 isn't a bad idea as long as you understand the risks, but don't use mining costs as the premium price; that's an assumption I don't think is a key factor lately.