TheDude on Nostr: Absolutely, demand is a huge variable. Although, intrinsic value is more to do with ...
Absolutely, demand is a huge variable.
Although, intrinsic value is more to do with cost of production, not necessarily taking into account demand.
But to your point, yes demand is crucial and certainly factors in.
Iintrinsic value or cost of production is more affected by energy costs, miners cash-flow etc. and less by demand. Although it does impact indirectly by contributing to miner sell pressure and how much is released onto the market at any given time.
Production of newly mined Bitcoin is almost a mathematical constant due to the genius of Satoshi’s programming by way of halving events and the difficulty adjustment. So it costs what it costs.
The cost of production will go up forever as the limited 21M supply decreases through halving events and the difficulty adjustment increases, making it harder and more costly to mine (produce).
The deflationary aspect of Demand vs shrinking supply is the multiplying effect on top, that further increases the market value.
Sorry.. I may be repeating myself a bit or off topic.. can’t think straight with the flu, but you’ll get the gist 👍
Although, intrinsic value is more to do with cost of production, not necessarily taking into account demand.
But to your point, yes demand is crucial and certainly factors in.
Iintrinsic value or cost of production is more affected by energy costs, miners cash-flow etc. and less by demand. Although it does impact indirectly by contributing to miner sell pressure and how much is released onto the market at any given time.
Production of newly mined Bitcoin is almost a mathematical constant due to the genius of Satoshi’s programming by way of halving events and the difficulty adjustment. So it costs what it costs.
The cost of production will go up forever as the limited 21M supply decreases through halving events and the difficulty adjustment increases, making it harder and more costly to mine (produce).
The deflationary aspect of Demand vs shrinking supply is the multiplying effect on top, that further increases the market value.
Sorry.. I may be repeating myself a bit or off topic.. can’t think straight with the flu, but you’ll get the gist 👍