[ZS] Bitcoin @ $1000 - unlikely any time soon

[Lodewijk andri de la porte]

2012/8/14 Gary Mulder <flyingkiwiguy at gmail.com>

> Any major governmental reaction and the resulting negative publicity and
> loss of confidence would
>
Any publicity is good publicity. The more the US gov bashed on drug trading
with BTC the better it was. Same will go for "it is undermining
governmental authority and putting civilians at risk".

So what is the marginal cost of mining Bitcoin?
>
The cost is not marginal. The performance of the network exceeds even
SETI at Home. It is the largest distributed computing effort ever done by
end-users (supercomputernetworks for the LHC for example are still bigger).

It would seem you're taking this the wrong way around. If the Bitcoin rises
in value the mining increases with it. If there's money to be made with
mining it is done right away and thus the amount of money made is lowered.
On the other hand no miner will sell for underneath the mining cost. The
50% premium may well be the cost of running hardware at the current risk
assesment.

Nevertheless the cost of mining Bitcoin knows no upper bound. If Bitcoin
would break 1000$ mining will cost right around there. The two prices push
and pull eachother.

Be carefull not to confuse money theory with practical considerations or at
least do so conciously. GPU/FPGA/ASIC doesn't matter when we talk about
mining as we do now.

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