Finance and Economics > The Money Board

Why bitcoin may never get much above $5,000 again

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iam4liberty:
WSJ has interesting article on how oil miners are mining crypto.  Since more natural gas is produced then can be either sold or vented, some oil miners are adding crypto farms to use it.  This means they are mining at near zero variable cost. This is even cheaper than use of solar and unlimited capacity can be cost effectively added at the $5k level.

https://www.wsj.com/articles/bitcoin-in-the-wilderness-11553860802
Bitcoin in the Wilderness
On a Canadian oil field, natural gas with nowhere to go powers a bitcoin-mining operation


A bitcoin-mining operation in a container on an Alberta oil field makes use of the site’s excess natural gas. AMBER BRACKEN FOR THE WALL STREET JOURNAL

FreeLancer:
Crypto’s ability to utilize fuel with no other viable market further strengthens the concept, in my opinion, and allows for greater decentralization of the network and increased blockchain security.  I don’t see how that limits valuation.

iam4liberty:

--- Quote from: FreeLancer on March 30, 2019, 04:32:50 PM --- I don’t see how that limits valuation.

--- End quote ---
When price goes near five thousand they add more units.  This creates more bitcoins dropping the price below that level.  The price of bitcoin is thus capped.

David in MN:

--- Quote from: iam4liberty on March 30, 2019, 05:25:04 PM ---When price goes near five thousand they add more units.  This creates more bitcoins dropping the price below that level.  The price of bitcoin is thus capped.

--- End quote ---

Never talk economics to a Bitcoiner. You'll go insane pointing out problems and they'll just tout their currency arbitrage store of value whatever's next.

You can, like me, predict the price decline and still not be in the "in crowd". Well, fuck them. I made money on the up, sold into the crazy, and now look for a purpose. But I know I can't have a sane conversation with the Bitcoiners. I called the top and got haranged for it.

Let the Bitcoin people be the Bitcoin people. Not really bright about economics and investment. And they'll throw it in your face that you missed the big spike (even if you didn't) and claim victory losing money. It's a slow group.

FreeLancer:
Bitcoins are generated at a fixed rate, though. You can’t mine more into existence at a faster rate by increasing the size of the mining pool.

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