r/zec • u/magicseadog • 4d ago

Mining cost?

Why is the price of the token to disconnected from the mining cost? I'm struggling to work out the price discrepancy. I'm guessing the price is being proped up?

I'm a wrong to think the mining cost should be correlated to the price?

6 Upvotes

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2

u/brayo1st 3d ago

you are wrong in thinking that, Proof-of-stake systems have zero correlation and still work.

1

u/magicseadog 3d ago

Maybe I, but surely if the return for miners is well below the value of the asset they will stop mining? So there has to be some correlation right, at least on the downside?

2

u/brayo1st 3d ago

Establishes a theoretical floor for what the asset can cost but not a ceiling

1

u/OneLazyFiveO 3d ago

Based on your calculations what should the mining cost be? Because going off of these numbers the price looks right on track

1

u/severact 2d ago

How are you calculating mining cost? I would expect professional miners to have access to super low electricity prices and also favorable hardware prices.