so did industrial miners buy too much gear or is this rally far from over. I see 280k sometime this year
I hope Bitcoin hits $280k sometime this year as you say, but I think that's a bit far-fetched given the market, but nothing is impossible.
Given the cost of mining, the price might be a bit unfair, but in my opinion, what determines the price of Bitcoin is not the cost of mining, but supply and demand. If more institutions adopt Bitcoin and more governments buy Bitcoin as a strategic reserve, we might reach that price.
yeah and the miners added 600eh in gear since april 2021 which is a lot of demand.
for the remaining yet to be mined coins.
its complex as to how much we should factor that demand.
normal joe blow demand
company demand
and not government demand.
but that money put into new miners is 2.2 million s21xp miners over 11 billion in gear in about four years.
now some math 2016 blocks x 26 = 52000 blocks and 156000 coins will get mined over the next year.
15,600,000,000 if 100,000 a coin power at six cents means over five billion in power .
add in infrastructure and workers the current price does not quite reflect miners demand .
150,000 a coin would be very close to miners demand price.
280,000 a coin would match the great profits miners made in 2021
so frankly current price does not meet miners demand price of 150,000
not to mention etf demand
bank demand
csr or bsr demand
regular investors demand.
every up cycle miners reached excessive profits.
that would be 280,000 price.
and 150,000 would be “good” profit number for mining demand
so 150k to 280k