First Known Bitcoin to USD Transaction: 5,050 BTC Sold For $5.02
https://ift.tt/33nqFlg
This [tweet](https://twitter.com/marttimalmi/status/423455561703624704) just recently had it’s 8th anniversary:
https://ift.tt/33GU2yP
The blockchain transaction may be viewed [here](https://www.blockchain.com/btc/tx/7dff938918f07619abd38e4510890396b1cef4fbeca154fb7aafba8843295ea2).
The price was calculated by computing how much it cost in electricity to mine that amount of BTC. At the time $1 of electricity would buy you 1,309.03 BTC. The transaction was facilitated by a service called New Liberty Standard (which established a slightly lower ratio). Basically the first exchange.
Today it is estimated that it costs anywhere from $7,500 – $11,000 to mine just 1 BTC. Using the lower estimate, that means it is now nearly 10 million times more expensive to mine Bitcoin (hardware included), but it is still profitable because the BTC sells for at least 4x your electricity and hardware costs. Of course, large mining operations have greater expenses than just hardware and electricity. James from InvestAnswers mentioned in a [recent video](https://www.youtube.com/watch?v=JKoupgtbiHM) about miners that they should be profitable all the way down to a 25K USD price per BTC.
Makes you wonder what will be the peak of the hash wars…
Cryptocurrency
