BTCUSDT20240714C60500
Bitcoin / Tether USD Jul 14 2024 60500.00 Call
crypto

In commodities, cost of extraction sometimes influences price because supply is physically constrained. But in crypto BTC supply is fixed by code, not by mining cost. ETH supply is determined by burn vs issuance, not by mining cost. If every Bitcoin miner got free electricity tomorrow, 1 BTC would not become worthless. If every miner’s power cost tripled, 1 BTC wouldn’t suddenly be worth triple. Mining cost follows market price, not the other way around. In 2011, it cost pennies to mine 1 BTC. That doesn’t mean Bitcoin was intrinsically worth pennies. Crypto isn’t like diamonds or coal because scarcity is guaranteed by math, not mining difficulty. Security comes from economic incentives, not the cost of burning energy. So that analogy is garbage. It assumes that harder to produce = more valuable. If this were true Gold wouldn’t hold value even when new mines lower extraction costs. Digital assets couldn’t be valuable at all (because “production cost” is just electricity). Bitcoin itself wouldn’t have risen from $0.05 to $125k despite mining difficulty changing by over a trillion-fold.
So, to answer your question
Cost to produce 1 ETH: 0. Ethereum is Proof-of-Stake.
Cost to produce 1 BTC: Whatever miners pay for electricity after the market sets the price. Mining cost follows price, not the other way around.

I bought LTC in 2017. My opportunity cost of LTC vs buying BTC at the time is now up to $800,000. Ltc was 77 at the time in November, it is now $84 8 years later. 8 years holding. I could have retired by now had I chosen anything else (Coinbase only sold LTC, ETH, and BTC at the time.) Thanks Charlie. Why are they even having summits anymore? It hasn't even beat inflation.

> now that there's so much institutional money in BTC and ETH.
Institutional money is just retail money but with bigger numbers. Institutions also sell in bear markets.
> I'm not convinced that four year cycles will have a significant impact anymore
As long as Bitcoin remains at a bigger market cap than Ethereum, I think 4 year cycles will have a significant impact, if for no other reason than, as each reduction in block supply impacts bitcoin security, more of bitcoin's trillions will migrate over to Ethereum.

Posts like these are one of the many reasons you still struggle to convince anyone outside of crypto that BTC will go anywhere.

50% of all BTC mining is already done by clean renewable energy like wind, solar, and nuclear. AI is the problem, not BTC.
People using AI to AI their friends as potatoes is wasteful. That’s what’s wasteful. AI IS BEYOND wasteful right now.
BTC mining is only getting greener and greener. Humans will solve solar energy sooner than you think. It’s harnessing the power is the problem. That sun will always rise and set. And if it doesn’t. We have bigger problems than energy.

As close to spot as possible. Payment by BTC, prefer to buy from established sellers. Interested in everything but preferably PAMP, Valcambi, Credit Suisse branded bars! Bars only. Hit me with what you've got! Also interested in 2/2.5 g bars.

If BTC goes up it’s good to have some.

Does "reserve of value / store of value" just mean "it will never go down in price in the short-term"?
I swear to god, "long term" is measured in weeks by some people here.
Why don't you go back and compare BTC's growth over the last 5+ years, compare them to gold/silver, and see how those metals hold up in comparison?
Because if you had been just reguarly DCA'ing into Bitcoin over the last 4-5 years, it would have *absolutely* stored the value of your money as well as appreciated much faster than inflation.

He has a lot more than the median BTC holder.

BTC only direct Hodl right now. But might try BLOX. Not going to hold any other coins directly. BTC is just a different animal from the rest.

Every 10 deposits to a BTC hardware wallet
It’s a good idea to do a SEND ALL to a brand new bitcoin wallet
address on the hardware wallet to consolidate all the inputs.
Each input cost about $.60 to move
When you consolidate all your inputs into one wallet address, then it only cost about $.60 to move the entire balance when you decide to move it in the future.
It’s like converting 10 $10 bills into a $100 bill

You have Polkadots. You do not have 1.4 BTC.
Should you trade the Polkadots for BTC? Is that your question?
Shitcoins were created to separate you from your BTC. They serve no other purpose.
Consider yourself lucky to get even a full BTC back.

I'd reduce BTC exposure. I use the STCE Crypto Infrastructure ETF for crypto exposure without relying on a single currency. I would reduce NVDA and add in broad ETFS with more tech exposure like QQQM/VONG/SPMO. Ideally you'd want to keep most of your portfolio in ETFS as your foundation and then only use a small part like 10-20% for individual stocks until you get more experience. Some good high potential return stocks for next year on my list are SOFI (Online banking/investing/lending platform), RDDT (Social Media), HIMS (Online Direct to consumer pharmacy), OUST (sensors for robotics), META (Social Media), AMZN (Robotics and much more), ADBE (AI and much more), RKLB (Space), ASTS (Space), ZETA (AI Marketing), Uber (Autonomous vehicles and ride share/delivery), and UNH/ELV (Health Insurance in general). Many of these companies are starting to climb back from a large drop in the past month so current prices are pretty good for starting positions.

Haha proof of work is "literally shit"....
How much does it cost to produce 1 ETH?
How much does it cost to produce 1 BTC?
ETH has its place but it is not even close to BTC in terms of intrinsic value.
Please before you reply with a sarcastic rant just answer my 2 questions above and think about this.....
The mineral Coal is very very cheap because it's very easy and cheap to mine and produce and is found in abundance.
Diamonds, much more expensive than coal because they cost a lot more to mine / produce and are not in abundance.
If you think ETH is intrinsically more valuable, or at least should be, than BTC then you need to think about the example above.
Sure coal is far more useful than diamonds and has many more applications and use cases, but to tell me coal will one day be worth more than diamond, gram for gram is just absurd.

Ahh, to experience the pain of only receiving 25 BTC from your home mining rig...

I think Eth is fantastic.
They're just different approaches to similar functionality. Just like you can make vertical takeoff rotor aircraft faster by tilting the rotors (Osprey) or you can make jet engine aircraft capable of vertical take off (F-35), they're both ways to get to similar functionality.
I think ETH is priced for winning the L1 race, which I'm not sure that's the case. I think there are lots of competitors in that space. BTC is a unique use-case, basically busting all central banks and governments for being too liberal with their power of the purse.

Give me a good portfolio.
Started investing 1 month ago. Here is what my portfolio is looking like.
37% VOO
33%BTC (bought a few of the dips)
30% NVDA
I want to diversify my portfolio and have a couple ideas and have done a decent amount of research, but would like some education and suggestions from you guys and what is likely to drive the market in the upcoming years and why. I am a teenager so I have plenty of time to hold and learn. Thank you god bless.

You’ll build BTC equity way faster than home equity.

Well we screwed if Japan increases their interest rates.
Investors will run to bonds, yen, gold and silver.
Our shitcoin BTC will probably go under 80k

Not really. If no one’s willing to pay then is it worth it. 
Think of something like your house. You can list it for $10million, and there’s only one house exactly in its location so it’s unique.
There’s no offers.
By your logic your house is worth $10m. If someone wants that house they have to pay $10m. 
I think you’re confusing price and worth. 
If there’s a healthy market for BTC or houses there’s buyers assigning a value to what they’re willing to pay and owners assigning a value they’re willing to sell. Where those intersect at any given moment is the price