From a high of $120,000 to less than $70,000 today, one has to wonder what is going on with Bitcoin. My favorite are the stories of "Crypto-pushers" who now reveal that despite telling the world to "go big on crypto" have not purchased any bitcoin since 2018 when it hovered around $6k. The truth of cryptocurrencies is that they behave more like rare paintings than even gold. The value is entirely driven by what others are ready to pay, as a high water mark, and the cost of extraction, as the low water mark. Currently the cost of mining a bitcoin is around $70,000 per coin. The cost of extracting gold is about $1,000. That means that gold suppliers will "stop" producing gold when the price drops below $1,000 (there is some flexibility there). However, the price of gold right now is around $5,000…so still a very profitable endeavor. What this means is that most miners will stop mining until the price rises above $70,000. I am exa...
Life of a Norfolk farmer