Home ยป Blog ยป Satoshi on Price and Production Costs โ€” Bitcoin Mining Economics (2010)

Satoshi on Price and Production Costs โ€” Bitcoin Mining Economics (2010)

“The price of any commodity tends to gravitate toward the production cost. If the price is below cost, then production slows down. If the price is above cost, profit can be made by generating and selling more. At the same time, the increased production would increase the difficulty, pushing the cost of generating towards the price.”

โ€” Satoshi Nakamoto (2010)


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