This Model Shows Base Price for Bitcoin

Bitcoin’s PoW consensus algorithm is secured by electricity consumption. With this consensus, each newly issued BTC is provided to have a certain value. The newest model of estimating the price of Bitcoin is to look at the production costs and calculate the base price based on this data.

When Bitcoin is examined technically, one of the features Satoshi thinks smartly is that it is always encouraging miners. The basis of Bitcoin is similar to how gold miners work in real life.

Numerical increase in crypto assets with fixed rewards is similar to miners who consume resources to extract gold in a similar fashion. In this case, the amount of CPU and electricity spent datadat is It was revealed by.

Looking at the resulting mining price and looking at these data, the current average mining cost is $ 7577 as of writing. While this level is considered as the base price for miners, it can be concluded that if the price of Bitcoin falls below this level, the miners’ income does not cover the costs. In such a situation, miners start selling and suppressing the price increase instead of stocking BTC, which is the worst thing is to shut down their mining equipment. Otherwise, Bitcoin, which is priced in the supply-demand balance, rises.

This model, which DataDater calls COP, provides reliable information for investors on how much Bitcoin can fall.

This COP model of DataDater can also be applied to crypto units such as Bitcoin Cash (BCH), Litecoin (LTC), and Stellar (XLM) using other PoW consensus algorithm. In addition, the COP model is also very effective in comparing the price of Bitcoin with other crypto units.