Sunday 24 June 2018

Correcting a misconception: The cost of electricity to mine a bitcoin does not create a bottom for the price


I've seen a lot of people repeat the myth that the cost of the electricity to mine a bitcoin creates a natural floor for the coin's price. In light of the rapid loss of value and there being nothing to stop this from continuing, I wanted to make sure that everyone who is holding the coin is aware of this so that they at least have a proper investment thesis formulated.The basic idea that claims the cost to mine a bitcoin has some fundamental correlation to value falls under the Labor Theory of Value, however this theory is a fallacy and does not hold up under market dynamics. Just because a person spends a lot of time or resources creating an object, does not mean that that object has value on the market. via /r/Bitcoin http://bit.ly/2ltoouY

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