It costs ~$1000 to mine a Bitcoin

Explain $17,000.
>You literally cannot explain it.

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grisha.org/blog/2017/09/28/electricity-cost-of-1-bitcoin/
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What? No
Not how it work

Please source that number

Is that just hardware? What about electricity and time?

>iphone costs $200 a piece to manufacture
>sells for $750
>millions buy it
>what is cost
>what is price

Well, there are only 21 million, at 1000 to produce it also takes a fuck load of investment to even start. Are you making that investment? Do you have the right to somebody else's labor? You do not. So you pay what others are willing to, which is now 17000 bucks.

Happy user?

So why aren't you mining it you soy boy? Start buying a shit ton of GTX 465s and get mining boi!!

>GPU flips while you sleep

>labor

>risk

>people are willing to pay 17k for 1 btc
>people sell btc for what people are willing to pay

The current mining reward is 12.5 BTC, which gives us the answer:

At $0.12 kWh a Bitcoin costs $1,567.88 to mine.
At $0.04 kWh a Bitcoin costs $522.62 to mine.
grisha.org/blog/2017/09/28/electricity-cost-of-1-bitcoin/

Well then set up a mining far I'd be wiling to bet you'd need to put in quite a bit of LABOR to accrue that capital. Don't. An idiot user

>The energy cost is what gives BTC its value

Why are there so many brainlets on this board?

>can't into value

> what is rent and depreciation of mining hardware

If Gold were valued by its actual uses it would be worth significantly less than it is

>brings words to a number fight

Gold exists.

Most of your money doesn't actually exist in a physical form, but we still say it exists

are you implying btc doesn't exist?
whats it like in that tiny brain of yours

USD is backed by the largest military in the history of the planet.

Kek. Input costs do not equal value. Even if 100% efficient

I see the problem. You are a moron

that's not how that works.
fed reserve operates entirely independently of gov and military.

You can't be serious.

>Not mining at a university for free electricity

Why are people spending $17k for something that costs $0

Its the maximum of the marginal utility and the marginal cost determines the price. For people talking about the cost of hardware, that's not included in the marginal cost, retard.

In this case the marginal utility is (apparently) higher.

I am. how could you not know that? otherwise the government would have too much incentive to abuse monetary controls. aditionally USD is a floating fiat and you can't force value into something. Military is a great support for being able to default on government debt not "backing USD" while legal tender status does add legitimacy it doesn't decide value.
Note: Im not a brainlet libertarian and abandoning bretton woods, and the previous gold standard was a great idea that did wonders for the world economy.

you are not factoring in the second hand btc market and arbitrage.

Are you implying there's no relationship between US military might and the ubiquitous use of USD? Because that's /x/-level batshit.

Hi, I was wondering when if the best incoming you happened over again you told again so you had to you want him to do it to you so bad?

>an antminer s9 costs about $4000 right now
>it takes one antminer approximately 395 days to mine one coin (using the numbers from that article)
>difficulty will obviously increase over the next 395 days so it will actually take longer
not saying that you're not making valid points though, the price of btc has clearly outstripped its cost. my assumption is that the difficulty will go up significantly over the next few months, resulting in costs getting closer to prices
plus tether will kill us all soon enough anyways

the price in electricity has literally nothing to do with its value. youre being fudded.

Please do then explain where the "value" comes from and how this magical new "value" is so new that it is a new kind of "value" that is a first-time-in-human-history "value" and why, then, we should have any trust that this "value" has value. Please. I'll wait.

no.
the U.S. military (which is scaled back significantly) played a large role, in establishing the USA as a hegemon which has made your currency "ubiquotous" though the main driver was sitting out most of WWII, which is kind of the opposite. now what does that mean the US military "backs" the usd, commercial demand deposits or even the fed? nope nope and nope. Does it add legitimacy? No. The Euro, Pound, Cad and many more are just as legitimate trusted and almost as "ubiquotous" while Yuen is in a country with the second best military and dogshit compared to them for a lot of reasons. Likewise with Russian Ruebles. Turns out this is all 100% to do with the central banks. Canada could quadruple military spending somehow surpass american military capabilities and it would do nothing for the CAD (though arguably damage values based on the increase in G)

>China's military is a thing
>CAD is a currency
>muh Ruble
I'm done with you. Enjoy your bitbags, fren.

>being this retarded

not stealing your neighbor's electric through his xmas lights

Sometimes I am reminded I share a board with complete fucking morons. But at least put your money where your mouth is and invest all your money in rubles since its cleaely undervalued in your delusions about militaries backing currency.

BTC doesen't need to be backed by a bunch of kikes with guns to exist

It's always pretty cringy when people try to redo this meme. It's old and had a full life, let it be.

Holy shit, is it the federal reserve that gets to take the interest on every dollar loaned to the US government? Yes it is. They're private.

gold is extremely useful in computing hardware. it's practically irreplacable in some applications (i forget which, they don't need much, but it's needed). gold is an actual rare metal with useful properties.

diamonds, on the otherhand, could probably be compared to crypto fairly well

>tank warfare is a thing
You've never been in the military. That's ok. Infinite Magyk NEETbux will give way to comfy barista jobs. Maybe an Uber franchise is in your future.

we got spergs with guns, we currency now bois

>You've never been in the military
Of course not I'm not a poor black kid who got scammed. I went to Uni instead. If you did that you'd now your military comparisons are still inconsistent with USD to Ruble exchange rates, which are lower than any if your comparisons. and that the Ruble fell drastically ( do to loss in legitimacy and uses mostly) as Russia vamped military spending. Or that the US military has no ties to the federal reserve. Or that the entire comparison is a dick waiving competition since at least 3 countries (including Russia) could literally nuke the world out of exiistance tonight if they wanted to. NORAD couldnt keep up. this would at least force a 1to1 exchange rate no?

How come whenever there's a thread up about mining bitcoin, its full of massive FUD? Makes me think that someone doesn't want anyone else to get into mining.

>nukes are a good way to keep markets open
Whatever you paid for your university education, it was too much by an order of magnitude.

mining alts is way more profitable.

I never said they were. You said military was. Nukes are the pinnacle of military strength. I'm not stupid enough to think military factors in. Hell I already said the US hegemon status that created the ubiquity of the USD was more do to LACK of military involvement in the majority of WWII jughead. ofc currencies such as the swiss franc and Euro have made it without hegemon status (or big militaries). Though yes nukes keep peace which keeps markets open if you want to be literal brainlet.