Bitcoin Price Based On Electricity
This script Calculates the price of Bitcoin solely on the hashrate and the cost of electricity.
The calculation is quite conservative considering its based on the average cost of electricity globally and we are assuming that everyone is running the latest mining hardware, which is the most efficient and cost effective.
Under both of these assumptions the calculation for bitcoins price is almost identical to the price we are seeing now.
If we change the reward rate to 3.125 (Aprils reward amount) then the price of one bitcoin per cost of work will be around 100k.
I am sure I am missing some important numbers in this calculation, fees, start up costs etc. However, it is very interesting to see that the price of Bitcoin can be calculated almost perfectly based on the hashrate and cost of electricity.
PROOF OF WORK
The calculation is quite conservative considering its based on the average cost of electricity globally and we are assuming that everyone is running the latest mining hardware, which is the most efficient and cost effective.
Under both of these assumptions the calculation for bitcoins price is almost identical to the price we are seeing now.
If we change the reward rate to 3.125 (Aprils reward amount) then the price of one bitcoin per cost of work will be around 100k.
I am sure I am missing some important numbers in this calculation, fees, start up costs etc. However, it is very interesting to see that the price of Bitcoin can be calculated almost perfectly based on the hashrate and cost of electricity.
PROOF OF WORK