Fair & Real Bitcoin price part 1.
Updated
Hello my dear crypto maniacs, Anoinvest with Fair & Real BTC price chart here.
I´ve recieved some questions like: " Man what is the real Bitcoin price, will we see 3K again ? " past days and it is really hard to answer it completly but what I can say is, that I really doubt we will see prices sub 6K anytime soon (This or next year)
Buying a bitcoin is different than purchasing a stock or bond because bitcoin is not a corporation. Consequently, there are no corporate balance sheets or Form 10-Ks to review. And unlike investing in traditional currencies, bitcoin it is not issued by a central bank or backed by a government, therefore the monetary policy, inflation rates, and economic growth measurements that typically influence the value of currency do not apply to bitcoin. Contrarily,
So what Determines the Price of 1 Bitcoin ?
I would say it is influenced by the following factors:
1) The supply of bitcoin and market demand for it
2) The cost of producing a bitcoin through the mining process
3) The rewards issued to bitcoin miners for verifying transactions to the blockchain
4) The number of competing cryptocurrencies
5) The exchanges it trades on
6) Regulations governing its sale
7) Its internal governance
What do we have in the chart is mostly 2nd point visualization and I think it matters a lot because set yourself this question
If you are a miner ... Would you stay in business and keep mining if you are in loss ? Without miners will there be a funcion Bitcoin blockchain ?
The green line shows Bitcoin electricity production cost over the time so we can call it support and area of retailers interest or biggiest buy opportunity as well
meanwhile
Red line shows Total Bitcoin production cost over the time so we can call it resistance and area of Miners sell interest or biggiest sell opportunity.
The lines are set based on average electricity cost USD Kwh and % of Electricity To Total Mining Costs
& white zone is the Plot BTC (Close + Transaction Fee Revenue / BTC)
What is the conclusion?
It looks like the price is below the production cost and miners mine in loss (Its averaged ! Not every country have the same electricity costs)
But based on this + if you take in consider the upcoming Bitcoin halvening as well as the S2F spike up then I would say Bitcoin is underpriced right now and should see a massive grow in upcoming months.
I hope you found this chart helpfull and will answer you the set question to me.
If you found data and this TA overall interesting at least I would appriciate hitting the like button.
Feel also free to leave up the comments or questions if you are in doubts.
Cheers.
**************************************************************
DATA TEXT IN CHART FOR LOW RESOLUTION USERS
**************************************************************
Total Bitcoins in circulation: 18,256,038
Total Bitcoins to ever be produced: 21,000,000
Percentage of total Bitcoins mined: 86.93%
Total Bitcoins left to mine: 2,743,963
Total Bitcoins left to mine until next blockhalf: 118,963
Market capitalization (USD): $166,288,768,776.25
Bitcoins generated per day: 1,800
Total blocks: 620,483
Blocks until mining reward is halved: 9,517
Total number of block reward halvings: 2
Approximate block generation time: 10.00 minutes
Approximate blocks generated per day: 144
Difficulty: 15,486,913,440,293
Hash rate: 111.54 Exahashes/s
More about the Stock 2 Flow:
Do you wonder how to determinate the reversal points ? Try my divergence method my profile is full of these :)
-------------
Disclaimer:
I´m not registered or licensed in any jurisdiction whatsoever to provide investing advice or anything of an advisory or consultancy nature, and therefore I´m unqualified to give investment recommendations.
Always do your own research and consult with a licensed investment professional before investing.
This communication is never to be used as the basis of making investment decisions, and it is for entertainment purposes only.
I´ve recieved some questions like: " Man what is the real Bitcoin price, will we see 3K again ? " past days and it is really hard to answer it completly but what I can say is, that I really doubt we will see prices sub 6K anytime soon (This or next year)
Buying a bitcoin is different than purchasing a stock or bond because bitcoin is not a corporation. Consequently, there are no corporate balance sheets or Form 10-Ks to review. And unlike investing in traditional currencies, bitcoin it is not issued by a central bank or backed by a government, therefore the monetary policy, inflation rates, and economic growth measurements that typically influence the value of currency do not apply to bitcoin. Contrarily,
So what Determines the Price of 1 Bitcoin ?
I would say it is influenced by the following factors:
1) The supply of bitcoin and market demand for it
2) The cost of producing a bitcoin through the mining process
3) The rewards issued to bitcoin miners for verifying transactions to the blockchain
4) The number of competing cryptocurrencies
5) The exchanges it trades on
6) Regulations governing its sale
7) Its internal governance
What do we have in the chart is mostly 2nd point visualization and I think it matters a lot because set yourself this question
If you are a miner ... Would you stay in business and keep mining if you are in loss ? Without miners will there be a funcion Bitcoin blockchain ?
The green line shows Bitcoin electricity production cost over the time so we can call it support and area of retailers interest or biggiest buy opportunity as well
meanwhile
Red line shows Total Bitcoin production cost over the time so we can call it resistance and area of Miners sell interest or biggiest sell opportunity.
The lines are set based on average electricity cost USD Kwh and % of Electricity To Total Mining Costs
& white zone is the Plot BTC (Close + Transaction Fee Revenue / BTC)
What is the conclusion?
It looks like the price is below the production cost and miners mine in loss (Its averaged ! Not every country have the same electricity costs)
But based on this + if you take in consider the upcoming Bitcoin halvening as well as the S2F spike up then I would say Bitcoin is underpriced right now and should see a massive grow in upcoming months.
I hope you found this chart helpfull and will answer you the set question to me.
If you found data and this TA overall interesting at least I would appriciate hitting the like button.
Feel also free to leave up the comments or questions if you are in doubts.
Cheers.
**************************************************************
DATA TEXT IN CHART FOR LOW RESOLUTION USERS
**************************************************************
Total Bitcoins in circulation: 18,256,038
Total Bitcoins to ever be produced: 21,000,000
Percentage of total Bitcoins mined: 86.93%
Total Bitcoins left to mine: 2,743,963
Total Bitcoins left to mine until next blockhalf: 118,963
Market capitalization (USD): $166,288,768,776.25
Bitcoins generated per day: 1,800
Total blocks: 620,483
Blocks until mining reward is halved: 9,517
Total number of block reward halvings: 2
Approximate block generation time: 10.00 minutes
Approximate blocks generated per day: 144
Difficulty: 15,486,913,440,293
Hash rate: 111.54 Exahashes/s
More about the Stock 2 Flow:
Do you wonder how to determinate the reversal points ? Try my divergence method my profile is full of these :)
-------------
Disclaimer:
I´m not registered or licensed in any jurisdiction whatsoever to provide investing advice or anything of an advisory or consultancy nature, and therefore I´m unqualified to give investment recommendations.
Always do your own research and consult with a licensed investment professional before investing.
This communication is never to be used as the basis of making investment decisions, and it is for entertainment purposes only.
Note
It is worth noting that profitability in this context exclusively considers electricity costs incurred for running the machines: it does not take into account capital expenditures (e.g. acquisition and amortisation costs) nor other operational expenditures (e.g. cooling, maintenance, and labour costs).
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.