Trinsicoin.com — A Theory of Minimum Bound

Back in May, 2018 I had an idea to calculate the “minimum bound” on what a given Proof-of-Work cryptocurrency costs to generate.

After a few days or back and forth and some valued assistance from the Litecoin dev team, I arrived at a good formula that takes into account the lowest known industrial electricity costs (world average) and the most efficient mining rigs for a few chosen cryptocurrencies.

That tool, https://www.trinsicoin.com calculates the “intrinsic” value of a given coin based on what it costs (best case scenario) to make it.

The BCH Fork: ABC vs SV

What began as a proposed system upgrade became a contentious hard-fork after Craig Wright (#claimstobesatoshi) proposed an alternative approach.

Needless to say, a drop in crypto-prices across the ecosystem occurred and now both forks are in operation. Oy vey.

However, as of 11/20 we can say for certain that while both networks are showing competitive hashrates their prices reflect entirely different realities.

Here’s a public Google Sheets demonstrating the difference:

That’s right, as of this morning (2018–11–20) the general price for Craig Wright’s version of Bitcoin Cash is around the $40–50 range, while Roger Ver and co’s BCH ABC is around $250-$300.

Considering they’re both utilizing a network hashrate of more than 3,000,000 TH/s the BCH SV fork is hemorrhaging money at the rate of more than $1,500 an hour just in electricity costs not being recouped by selling the coins at market value.

Extrapolations

BCH SV currently has a -500% value to energy-cost ratio according to trinsicoin.com.

Before the split the BCH network was utilizing a network hashrate of about 4,850,000 TH/s.