Different methods can be used to assess the fair value of Bitcoin. One of the best, however, is the mining costs. In the following article you will find out what these currently say about the potential of Bitcoin and where the bottom is, as well as which alternative more and more investors are targeting due to the impressive returns and price increase potential.
Methods for valuing Bitcoin
There are many different methods to assess fair value of Bitcoin. One of the most common procedures is the Comparison method, in which Bitcoin is compared to similar cryptocurrencies. There is also that too Metcalfe’s law, which assumes that the value of the network is proportional to the square root of the number of its users. There are also, among other things, technical analysiswhich uses chart patterns, trading movements, indicators and volume for analysis.
Valuing fixed assets is a complex undertaking that requires different approaches. From stocks and bonds to precious metals, there are different measures to determine the true value of an asset. For minable precious metals such as silver, one of the common approaches is the mining price – the costs that have to be spent to produce the silver. This approach can also be used in the world of cryptocurrencies. It seems to be one of the best methods to determine the true value of Bitcoin.
Because Without the miners, the cryptocurrency could not be secured and the network collapses. They have to take into account the opportunity costs that have to be incurred to mine a coin. If it is no longer worthwhile for the miners, they might sell their hardware or, for other coins that are still worth mining via graphics cards, mine other cryptocurrencies or calculate AIs instead. They could also implement cost-cutting measures.
The mining cost method is attracting attention, especially with Bitcoin, and is proving to be one of the most solid methods for determining value. Because these Theory has been increasingly validated as it shows a strong correlation with the current Bitcoin price. But like every theory, this one also has its limits. She does not take into account market demand, supply or strategic moves by minersespecially in view of the next halving in April 2024.
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What are the mining costs and the true value of Bitcoin
Charles Edwards, founder of Capriole Investments, sheds some interesting light on the topic. According to Edwards, the The fair value of Bitcoin is $47,200 despite the current market fluctuations. The analysis is based on the production costs and energy required to create new Bitcoin units. Edwards emphasizes that the Production costs for Bitcoin represent a kind of price floor – in this case about 23,000 US dollars.
According to Edwards’ theory, the current Bitcoin price, which is in a range between $25,500 and $26,500, presents a long-term low-cost buying opportunity risk and a fall height of almost 16% represents. A The increase to $47,200, however, corresponds to 83.60%, with what that Risk-reward ratio at 1:5 lies. However, this assumption is based on the theory that the price increase would stop when the “fair value” was reached – which has never been the case before.
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Why the new Bitcoin on BSC offers a chance of 30x and more
Who, on the other hand, after higher returns in a shorter period of time If you are looking, you could have a better chance with the new Bitcoin on BSC. Because the project, which is in high demand, is building on the success of the version 2.0 tokenswhich have provided particularly impressive performances recently.
Many of them have seen prices rise by over 100% in just one dayHow XRP20. The price explosion of BTC2.0 was also impressive Already by 30,038% in just six days could increase. However, the biggest increase was recorded by the Harry Potter Obama Sonic 10 Inu, which is also known as HPOS10I and uses the ticker symbol $BITCOIN. So the token could increase by a staggering 1,566,178% in just 3 months.
With the last Bitcoin clone HPSO10I, investors would have with an investment of €100, a profit of €1,566,278 can look forward to. But also with a purchase of the BTC2.0 tokens worth For €100, investors could earn up to €30,138 from the pre-sale have. Investors particularly benefited from the presales, as they were able to secure the low token prices from the presale offer. But there is many more examples with similar developments.
The new BTCBSC takes advantage of the recipe for success of these impressive projects and wants to in addition, offering investors greater added value through a range of benefits. In this way, the project should also be able to attract long-term investors more easily, which in turn stabilizes the price and encourages price breakouts.
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What makes BTCBSC so special?
The new BTCBSC was inspired in its design by Bitcoin and the Version 2.0 tokens. That’s why the issuance of the tokens is modeled on those of BTC. However, cryptocurrencies started in 2011, when Bitcoin could still be purchased for a price of $0.99. So all those who missed the chance to get into Bitcoin cheaply should get a second chance with the new token BTCBSC.
Another advantage compared to the original is that Bitcoin on BSC is a more environmentally friendly cryptocurrency acts. Because mining BTC requires a lot of energy due to its energy-intensive PoW (Proof-of-Work) consensus mechanism. That’s why BTCBSC chose this energy-efficient PoS (Proo-of-Stake) decided to stop the impending consequences of climate change and protect the environment.
In addition, investors with Bitcoin on BSC do not have to make any investments in miners. Instead the token holders receive through this innovative stake-to-earn process rewards with the completion of each new block. The stakers are currently scoring impressive returns of 1,571% per year, However, these depend on the proportion of tokens deposited in relation to the staking pool and the investment duration.
The current rewards can be tracked via the dashboard on the official website. They are issued over a total period of 120 years. This means that investors should be committed primarily for the long term, which should have a stabilizing or even driving effect on the price.
Further advantages of the Bitcoin clone BTCBSC compared to BTC
Compared to BTC, BTCBSC uses the Binance Smart Chainwhich significantly lower transaction fees allows. This means you don’t have to pay $10 as with Bitcoin; instead, the gas fees are only around $0.10.
Furthermore, this is also the case Transaction speed significantly higher. As a rule, all that is required is a transfer 5 secondswhile with Bitcoin it’s more like 10 minutes.
Another big advantage is this Development potential, which results from the blockchain. Because these also enables smart contracts and DAppsoffering potentially greater benefits.
In addition, after the presale, BTCBSC has a market capitalization of only $6,063,750, which means offers plenty of room for price explosions. If the token only reaches a valuation of 100 million US dollars, investors could more than 16 times Enjoy winnings. But even the ridiculous HPOS10I reached $187.68 million, which 30x would correspond. If BTCBSC reaches the market capitalization of the contentless Pepe Coin at $1.65 billion, investors could even 272x achieve.
What is particularly impressive is that already sold more than $314,000 worth of coins in less than 3 days became. Due to the high sales pace and attractive staking returns, the Advance sales will be completed in around a month at the latest be. Given the increasing attention and increasing demand However, this could also happen much earlier.
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About the author: Simon Feldhusen came into contact with the stock market for the first time 17 years ago and has been intensively involved in the topics of trading, cryptoassets, stocks, P2P, corporate financing, finance and entrepreneurship on a daily basis for more than 8 years. He has also been working as a copywriter and ghostwriter in the financial sector for several years. During this time he has acquired a diversified knowledge through various training courses on the financial markets and following daily news. Since then, not a day goes by without him dealing with the markets. He publishes, among others, for Finanz.net, ETF-Nachrichten.de, Coincierge.de and P2E News.com.