I liken the current situation to a wildfire that clears away all of the unhealthy underbrush, but leaves the steady forest in a state to thrive. In other words, the BS crypto projects are being wiped out and market share is being consolidated into the legitimate use cases (Bitcoin being the most legit by a mile, as a store of value).
Agreed, a good time to buy is on the horizon. I am expecting further weakness until the prices approach those of the miner's break-even point ($4-5k Bitcoin).
Should we reach a price point that is on par with production (mining) and the regulatory green-light is given, get your space gear ready! Institutional money will begin accumulating positions, prices will appreciate, and then the melt up is on!
The asset class is so miniscule that even a tiny capital re-shuffle into crypto will have huge profit windfalls.
I read this morning that we are currently at break even mining prices for btc just under $8k, but I haven't verified that yet.
Break even under what conditions? Free electricity and latest mining equipment I assume? Difficulty may start to drop if prices continue to dive although equipment cost is already a sunk cost and if electricity is free then they may as well keep mining!
Good questions. This is from the news release today:
"There are some bullish signs emerging. Bitcoin currently trades at the break-even cost of mining, currently at $8,038, based on a model by Fundstrat’s data scientists Sam Doctor and Ken Xuan. The digital currency bottomed in 2015 when it was at the same multiple relative to mining costs as it is today, and peaked in 2013 at 21 times its mining costs."
https://www.bloomberg.com/news/articles/2018-03-15/bitcoin-bull-tom-lee-sees-more-pain-ahead-before-price-recovery
Agreed @grizgal it is a relatively dynamic/ambiguous metric (mining break-even, that is), but I'd read an estimate that tried to come up with a global average mining price, rather than purely based on US electrical prices. The estimate was in the $4-5k range. Cannot recall the link to provide here, but it seems to coincide with the link @jrcornel provided above citing sub $6k lows in store.
In this entirely nascent, subjective market I will stick to sub $5k bottoms, purely from a psychological standpoint.