4 replies to this topic

[RealSolid]

We've had a discussion on IRC about the average world price of electricity. SolidCoin goes with a pretty low number of 8c per kilowatt hour. Looking at most western countries the price seems to be above 15c per KWh.

We need to figure out the number we will use for MicroCash so that we can figure out an accurate production cost for the price point we want. 15c per kilowatt hour seems to fit what we thought is the world average but it would be good if we had some hard data we could look at to formulate an exact number. This way people could predict how it will change in the future. If 12c was chosen that means MC dollars would be produced about 50% faster than SC. Why not exactly the world average? Well we need to err on the side of caution slightly and recognize some people have free or industrial electricity at very low rates. So having it a few cents below world average would actually be where it should be set.

[rlh]

I'm not sure how to calculate this but I think it would be worth coming up with a formula such that 75-85% of the worlds population should be able to profitably mine SLC. In other words, if 85% of the world pays $.15 (or less) per kWh, then that should be the value used as the cost per kWh.

The unfortunate problem is that there is no good, single source for this information. Coming up with a good number is going to be a bit of a guess-timation or it's going to be a bit difficult to derive. In the interim, some one could throw together a spreadsheet that takes a table of global, country populations and multiply by the information on this wikipedia page, if they want to find the average cost based off of costs per Country.

RS, maybe that's what you've done. If so, I think your numbers are on the right track.

Update

A quick look at country populations shows that the top 30 countries make up about 77% of the global population. I think that could be a good list of countries to monitor for energy pricing. Although China/India/US dominates that value, the list is still quite diverse.

If I get some time this evening, I'll try to through all of these numbers into a single spreadsheet and share them here.

[RealSolid]

Yes a formula is indeed what I was looking for. This way it cuts out any subjectivity and people can view the maths.

[Schwede65]

RealSolid, on 27 August 2012 - 04:20 PM, said:

We've had a discussion on IRC about the average world price of electricity. SolidCoin goes with a pretty low number of 8c per kilowatt hour. Looking at most western countries the price seems to be above 15c per KWh.

you talk about $ 0.8 energy costs, that is ~ 5 kWh to get 1 MC (1 kWh = $ 0.15)
thats a better step in the right direction (down from 10 kWh/1MC), but i think its still too high, when we talk about large numbers of coins
its still enormous energy-wasting
please come down to 2.5 kWh/1MC with an average-energy-cost of $ 0.2/kWh, then you have ~ $ 0.5 direct energy-costs, thats enough
because the direct costs will not directly influence the price...
yeah, it must be in the right price-area but not so close nearby

only my suggestion

[RealSolid]

Schwede65, on 04 September 2012 - 07:24 PM, said:

you talk about $ 0.8 energy costs, that is ~ 5 kWh to get 1 MC (1 kWh = $ 0.15)
thats a better step in the right direction (down from 10 kWh/1MC), but i think its still too high, when we talk about large numbers of coins
its still enormous energy-wasting
please come down to 2.5 kWh/1MC with an average-energy-cost of $ 0.2/kWh, then you have ~ $ 0.5 direct energy-costs, thats enough
because the direct costs will not directly influence the price...
yeah, it must be in the right price-area but not so close nearby

only my suggestion

I understand what you are saying and agree that if MC was ultra successful something would have to be done about costs. However I think this requires a lot of thinking and we can end up with a solution that doesn't burn so much energy but still has a cost that makes them around $1 each. Right now, using electricity as the lowest barrier for price seems the best way we have.