The price and cost of bitcoin

Explaining changes in bitcoin's price and predicting its future have been the foci of many research studies. In contrast, far less attention has paid to relationship between mining costs price. One popular notion is cost bitcoin creation provides a support level below which this cryptocurrency's should never fall because if it did, would become unprofitable threaten maintenance public ledger. Other used explain or forecast movements. Competing econometric analyses debunked idea, showing that follow rather than preceding them, but reason for behavior remains unexplained these analyses. This aims employ economic theory why studies failed predict prices movements precede them. We do so by explaining chain causality connecting costs.