Unlike other market entities or stocks, it is not easy to produce a Bitcoin and authenticate it. Bitcoin is a complicated electronic currency that requires an impeccable amount of expertise and knowledge to determine. Bitcoin producers are also known as miners, and there is an impeccable amount of competition within the market when it comes to its production.
Electricity is one of the most significant cost factors that miners consider when evaluating the starting price. It is not as easy to produce Bitcoin as it may seem to a lot of people.
Due to the complex nature of Bitcoin, only one bitcoin block is produced every 10 minutes. The 10-minute interval put many Bitcoin miners under immense pressure. Bitcoin has a complex algorithm, and each miner has to solve the problem to determine Bitcoin and its value. Hence, when more miners add to the Bitcoin production chain, the problem becomes even more complicated. It requires an impeccable amount of expertise to solve the mathematical problem due diligently. The cost of production margin plays a pivotal role in determining Bitcoin value.
So the more it cost to mine, the higher the value of BTC wil be? Great, I will HODL mine then, because it will become more and more difficult each halving I think.
Yes.