Cost of production linked to the price?

[fa]

Both cost and market will decide the price.
If price is too low and don't cover the mining cost, more miners will drop out, causing scarcity of coins dumped by miners.
In this way, price will go up again.

[1715504343]

1715504343

[CryptoCarmen]

So some people claim that coins are worthless if the cost of production is near zero. Other people claim that it doesn't matter what the cost to producing a coin is as there are other factors that determine the price.

What are your opinions?

Some coins gets mined. Those when price change also hash rate changes.

Other coins are generated differently. Some have really nice ways, other really stupid.

if i say i have 1,000.000 coins and then start giving freely 1 away. I will have problems give 1000 and price will be high, and also capitalization sine i will still hold 999.000 coins and dont plan to sell them. altho capitalization might show my stash is worth 1 million USD, are worth almost nothing.



On the other hand. someone that paid high electricity bill. or made lots of articles or some other way with work participated to get some generated coins will not partof their coins cheap. they will find them worth at least what they paid fro them.

[huoiuu]

i think the price was depended on how many people will buy it

[lilin321]

I think,the price of a coin is mainly decided by two convenient, cost is a factor, but the more important is : the relationship between supply and demand.

[lucasjkr]

I think a lot of people would be trully shocked if they learned just how cheap it is to produce mining hardware. That it's sold at a price that makes retail mining a break even proposition at best is of no relevance. These things are cheap to make, money printing machines. It's just that the manufacturers sell them for a price close to what they would make from operating it over its entire useful lifetime. But the cost to produce the hardware is negligible, and therefore the real cost of producing a Bitcoin is close to negligible as well.

[odolvlobo]

If price is too low and don't cover the mining cost, more miners will drop out, causing scarcity of coins dumped by miners.

Miners dropping out will not cause a scarcity of coins. The number of coins mined every day is the same no matter how many miners there are or what the price is or what the cost of mining is.

[btc-facebook]

I think a lot of people would be trully shocked if they learned just how cheap it is to produce mining hardware. That it's sold at a price that makes retail mining a break even proposition at best is of no relevance. These things are cheap to make, money printing machines. It's just that the manufacturers sell them for a price close to what they would make from operating it over its entire useful lifetime. But the cost to produce the hardware is negligible, and therefore the real cost of producing a Bitcoin is close to negligible as well.

You need to remember that the majority of the cost involved in producing mining hardware is from research and development. ASICs are very specially developed and it will generally take a lot of trial and error in order to develop the technology needed to create/produce an ASIC