Tutorials:Proof of Work and cost of production

Quest: Proof of Work and Cost of Production

Visit the following website: Bitcoin Production Cost

Observe the two charts:

 * The first chart shows the Bitcoin Average Mining Cost and the Bitcoin Price.  
 * The second chart displays the ratio: Bitcoin Average Mining Cost / Bitcoin Price.  

Task: Cost of Production

• To complrete the quest: Visit the Average Mining Costs page.

Exercise

In the second chart (ratio: Bitcoin Average Mining Cost / Bitcoin Price), notice the following:

• When the Bitcoin price equals the cost of production, the ratio is one.

• When the line is below one:

   - Miners are making a profit if they sell at that price.  

• When the line is above one:

   - Miners are losing money if they sell at that price.