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This new model can predict Bitcoin bottoms with incredible accuracy

    Bitcoin hit a new low of $ 3,210

    The Bitcoin network and the Proof of work (PoW) mechanism are basically protected by the “electricity” that miners use to create value for coins. Based on this feature, a new predictive model called Cost of Production or COP is emerging with its standard and rationality.

    The COP model agrees with Stock-to-flow about the positive future of Bitcoin

    In Bitcoin's whitepaper, Satoshi once wrote that this new currency will recreate the so-called “digital gold”.

    The accumulated value for coins is similar to the way traditional gold miners put their resources and resources into the precious metal mining process. In the case of Bitcoin, the time the CPU operates and the amount of power consumed is the basis for determining the value for BTC. For that reason, DataDater has created a new model to calculate the minimum production cost for a BTC coin.

    Predictive results of the COP model
    Predictive results of the COP model

    DataDater's COP model will also be a tool to help investors calculate the bottom position of Bitcoin, based on the correlation between the current price and the cost to create a coin.

    What can this model tell us?

    This model also takes into account factors such as ASIC excavator's viability, and the difficulty will increase once a new miner joins the network. As miners invest more wealth in more modern equipment, while the amount of prizes can be reduced, we can expect the price of Bitcoin to rise sharply once the operating costs of many mining factories are reduced. bouncing.

    The COP model can also be applied to many other PoW currencies. By predicting the minimum cost to create coins, we can also calculate the value of BCH, LTC or XMR.

    DataDater also now has plans to make many future comparisons with other PoW systems. This unit will thus want to add a model that predicts many factors and other aspects of the coins, thereby improving the accuracy of the comparison system.

    The result is a very surprising comment. Following the model above, it will take an average of $ 7,577 to mine a Bitcoin.

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    According to Coin68 / Bitcoinist
    Recompiled ToiYeuBitcoin

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