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Thursday, January 9, 2020

MYTH: Bitcoin is a Good Deal


Well, I think this is a solid myth.  And I'm not going to go on and on and on like most financial blogs you see today; volume does not equal value.
Here is the rub, as I see it:
  1. According to BitFarms (BITF), their breakeven cost of mining one bitcoin is US$2,259.  
  2. Today, one Bitcoin is worth US$7,785.
  3. At one point in 2018 it was worth nearly $20,000.
  4. Revenue per terahash (a measure of computing speed) has fallen from $4.00 two years ago to about $0.13.  That speed requires expensive hardware and electricity.
In summary, I don't know how long the public will continue overpaying for something so volatile.  If prices are driven back up it will be primarily due to investor delusion not due to any fundamental value.

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1 comment:

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