The 2 exchange rates of Bitcoin | #SatskWh

Video Transcript

Bitcoin has a fundamental exchange rate and a financial exchange rate let me show you the differences between the two everyone and their grandma has heard about the Bitcoin to dollar price but not so many people understand the Bitcoin to kilo price this is where bitcoin’s value comes in you can think

Of them as production and consumption and that is that with producing Bitcoin AKA mining it’s the consumption of electricity through a computer to produce your Bitcoin buying is the consumption of your dollars through an exchange to purchase your Bitcoin when you produce Bitcoin you get it at a

Lower rate to the market it’s the same as when you mine gold the typical Gold Miner spends $1,000 processing Rock to get his ounce of gold versus buying that same ounce of gold for $2,000 on the market Bitcoin is no different you can produce it yourself or buy it at a

Premium on the market for