BitCoin Bubble?

2017 October 29
tags:
by drdog09

As of 10/29/2017 BitCoin is at $5800 and change. The question? Is that a proper valuation?

The bitcoin boom is well and truly underway, and investors are constantly looking for new ways to gain an advantage in this space The best way to do this, it seems, is by cutting the energy costs of mining this precious commodity. The bitcoin mining industry consumes 22.5 TWh of energy annually, which amounts to 13,239,916 barrels of oil equivalent.

With 12.5 bitcoins being mined every 10 minutes, that means the average energy cost of one bitcoin would equate to 20 barrels of oil equivalent.

While it’s all about where you sit on the cost curve, Stafford provides us with some context on gross energy consumption.

To put this in perspective, the total energy consumption of the world’s Bitcoin mining activities is more than 40 times greater than that required to power the entire Visa network.

Source

WTI crude is going for $53.90. Lets say $54 for convenience. At 20bbl/BTC the fundamental price of a BTC would be $1080. So why the disparity?

Same as it is in the gold and silver markets — demand.
Fact one could equate the fundamental price ($1080) to its demand price ($5800) in the market. The cost to mine gold is its fundamental price yet its price as jewelery is about 4x higher. Yeah I know, you can’t hang a BTC around the neck of your beautiful one. For BitCoin there are two additional items driving the price.

China is now the largest consumer and market for BTCs. Even though their economy is running at twice the velocity of the US right now, there is an undercurrent of fear and any upper crust commie that has any sense has been buying BTCs and foreign real estate as a hedge to a possible crash. The second is Venezuela whose economy HAS crashed. The VZ Bolivar is in toilet paper territory, if you can find any. Inflation is running 2300% per annum. BitCoin is becoming the coin of the realm in VZ for the simple fact that it gets the average joe off the treadmill. (Imagine, the same day you get paid you lose 10% of your valuation and forget about keeping it in a bank!)

The demand for BTC is what is keeping it in a bubble. So long as there is that fear in the markets it will stay high.

Image result for wyoming cheerleaders

24 Responses leave one →
  1. 2017 October 29 6:10 am
    [1]
    drdog09 permalink

    Sad — http://insider.foxnews.com/2017/10/28/george-washington-church-plaque-honoring-first-president-must-come-down — That a congregation can’t look beyond itself and accept the frame of history their church and its former members represent.

  2. 2017 October 29 6:21 am
    [2]
    justrand permalink

    the Mueller witch hunt> “investigation” is spitting out an “indictment” on Monday…the timing of which is as hilarious as this whole charade.

    BUT, it has allowed the media to go from IGNORING UraniumOne and FusionGPS, and go into full on meltdown over the coming “indictment”

    as the old saying goes: “You can indict a ham sandwich”…which is exactly what will happen on Monday

  3. 2017 October 29 6:44 am
    [3]
    JimNorCal permalink

    2,
    Instapundit notes “Mueller Probe’s First Act: Leak to CNN: CNN exclusively reported Friday night that Mueller’s team had filed charges.” And comments “which is weird because that kind of leak is a Federal crime”

  4. 2017 October 29 6:53 am
    [4]
    JimNorCal permalink

    This caught my eye from the SANS computer security newsletter this week:

    Dell Customer Support Domain Hijacked for a Month
    (October 24, 2017)
    A Dell website run by a contractor was hijacked for about a month over the summer. During that time, the domain may have been used to serve malware. The site, DellBackupandRecoveryCloudStorage[dot]com, was set up to help Dell users who needed to restore factory settings due to malware or other computer troubles. The domain is used by a program on Dell machines called Dell Backup and Recovery Application. The domain was stolen from a Dell contractor for about a month over the summer after the contractor failed to renew it.

    Yike!

  5. 2017 October 29 7:36 am
    [5]
    JBoz permalink

    From the “You Can’t Make This Shit Up” department:

    The lone MLB kneeler got busted for pointing a gun at a female food delivery driver.
    http://www.tmz.com/2017/10/28/mlb-bruce-maxwell-arrested-aggravated-assault-allegedly-pulled-gun-delivery-driver/

    Side note, take a look at his picture. If Obama had a son…with Rosie O’Donnell.

  6. 2017 October 29 9:04 am
    [6]
    justrand permalink

    Good points in this article. Of course, AG Sessions will NEVER go forward with this.

    http://www.powerlineblog.com/archives/2017/10/investigate-this-4.php

  7. 2017 October 29 9:05 am
    [7]
    justrand permalink

    JBoz, that guy is one ugly spud!

  8. 2017 October 29 9:58 am
    [8]
    bc3b permalink

    Hopeful bitcoin mining isn’t like cobalt mining – four year-olds working in mines so liberals can drive electric vehicles for a clean environment:

    http://www.dailymail.co.uk/news/article-4764208/Child-miners-aged-four-living-hell-Earth.html

    There’s nothing more hypocritical than a self-rightous liberal.

  9. 2017 October 29 10:26 am
    [9]
    mulletover permalink

    Hope everyone is enjoying a NFL-free Sunday afternoon. Now I just have to avoid that Adam Shitt character as I channel surf around.

  10. 2017 October 29 11:25 am
    [10]
    drdog09 permalink

    8,

    Someone ought to ask Mr. Musk if his Tesla’s use conflict free and now child labor free cobalt in his batteries.

  11. 2017 October 29 11:25 am
    [11]
    drdog09 permalink

    9,

    NFL? What is that?

  12. 2017 October 29 11:44 am
    [12]
    drdog09 permalink

    Not surprised — http://sultanknish.blogspot.com/2017/10/the-global-failure-of-globalization.html — but an good expose in one article on globalization.

  13. 2017 October 29 12:07 pm
    [13]
    bc3b permalink

    Watching old movies and surfing. Better start interviewing next week’s cheerleaders.

  14. 2017 October 29 12:38 pm
    [14]
    justrand permalink

    I have forgotten the NFL exists.

    AND…I know quite a few men & women who were lifelong NFL fans, and would routinely have the games on TV as background noise (if nothing else) every Sunday and Monday. EVERY one of them has not watched a single minute this year.

    EVERY one of them.

    The bet the NFL is losing here is that they think those people will come back…they won’t. All those folks have literally lost the desire to watch, and have NO interest in doing so in the future.

  15. 2017 October 29 1:44 pm
    [15]
    JBoz permalink

    BC – any chance you take cheerleader requests? Can’t recall seeing any Nebraska babes in recent memory. Bozlet #1 is enjoying his freshman year at Nebraska-Lincoln, and having a blast. Maybe too much fun…we will have to wait for 1st semester grades to know how much fun he’s having. Anyway, good school…the teachers are probably lefties, but they keep it themselves. Not much forced diversity crap. No safe spaces. You could probably wear a red MAGA cap and nobody would say a word. The campus is very Caucasian…not that that’s a good or bad thing, but absolutely no sign of BLM, Antifa or other campus militants. In fact, I asked him if Black Lives Matter was present. He said, “Not enough blacks for it to be plural. It would be more like Black Life Matters.” The students seem for the most part wholesome. No dreadlocks, no strung out hippies like you see in many college towns. The students are mostly focused on school, beer and Husker football.

  16. 2017 October 29 3:27 pm
    [16]
    bc3b permalink

    JBoz –

    Si/nce some Nebraska cheerleaders bare their navels, I will be glad to honor your request.

  17. 2017 October 29 3:52 pm
    [17]
    justrand permalink

    it’s not safe to bare your navel in Nebraska in the Fall & Winter…but I’m sure at least one cheerleader has tried! 🙂

  18. 2017 October 29 4:15 pm
    [18]
    bc3b permalink

    Justrand –

    We had a navel-baring Wyoming cheerleader pictured last week (see above). I am sure it was from the first game of the season.

    That’s the reason the Canadian Football League starts in July – so the girls have a couple weeks to show some skin.

  19. 2017 October 29 4:20 pm
    [19]
    drdog09 permalink

    NFL week 8 still looks somewhat barren — http://www.breitbart.com/sports/2017/10/29/empty-seats-aplenty-kickoff-start-week-8/ — The scalpers have to be hurt’n.

  20. 2017 October 29 6:26 pm
    [20]
    JBoz permalink

    Anyone have a total tally of the cost of kneeling? Total cost including ticket sales, lost TV revenue, lost merchandise sales, lost concessions?

    Whatever the cost, and I can only assume it’s a very large number, that is what Kaepernick’s little America-hating tantrum has wrought. That’s what I wish someone would say to him. “Hey dickhead, you singlehandedly cost this industry $MILLIONS. You have damaged the NFL brand perhaps irreparably. Your actions caused 40% of a fiercely loyal fanbase to simply walk…a fanbase that took decades to cultivate. And you are demanding a job?”

  21. 2017 October 29 6:50 pm
    [21]
    Eph permalink

    19 DR

    Its called tanking for draft position come June

  22. 2017 October 29 6:51 pm
    [22]
    Eph permalink

    The NFL and MLB have learned from the NBA

    Tank after a few games for draft position.

    Fuck the fans.

  23. 2017 October 29 7:08 pm
    [23]
    Eph permalink

    Kershaw is a bum.

  24. 2017 October 29 8:25 pm
    [24]
    drdog09 permalink

    22,

    Tanking for first picks only works if you are the first movers to write off the season. Since everyone is tanking it nixes the result.

    ESPN has a piece up that Jones is attempting to fire Goddell.

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