
Bitcoin's minimal value - fcacaafbffc
Some people claim that Bitcoin is a bubble, and that it&#x27;s value will drop to zero. While such an event can happen, I think we&#x27;ll see large scale mining operations shutdown before that happens. The proof of work system gives Bitcoin an intrinsic minimum value.<p>Imagine you are running a large mining operation in a datacenter. To keep the math simple, let&#x27;s say that you win the mining &quot;lottery&quot; once every ~150 blocks, i.e. you are mining one coin per day. You must pay for electricity, datacenter space, return on your hardware investment, and other expenses. You will therefore only keep your operation going if you can turn around and sell your coins for some minimum value (say $150,000 per month). The presence of miners thus implies (with my made up numbers) that the coin has a minimum value of $5000.<p>It also implies that the same amount of money is entering the crypto currency every 10 minutes. I.e. the currency is growing and we can observe it by looking at the difficulty to mine one block.<p>External factors are giving Bitcoin a minimal value. Are people who are speculating on future prices taking all these externalities into account?
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bsvalley
The thing is, if its value drops to zero, we might lose a few dollars here and
there right? A lot of high profile people and edge funds would lose hundreds
if not billions of dollars. So we’re good no worries...

Now, if 1 BTC reaches 500k-$1 million, it’s all good and it’s actually
possible when you look at it as a product vs need + market size.

No risk no reward ;)

