Edit: The vast majority of this post is still factual except for the forecasting. The edit below should be taken into account and the forecast should start from around 650$ and not 1000$.

Edit (why I was wrong): In this article, for the calculation of bitcoin mining profitability, I use 10 cents per kw/h. Most companies and Chinese must pay their electricity below that price, from as low as 9 cents to 5 cents possibly lower. Thus with a electricity price of 5-6 cents the Antminer s7 is still profitable. I use this site to calculate mining profitability. Most other fact in this article are still exact, except those with prediction which should be adjusted to take into account what I've just written.

https://www.whattomine.com/asic


This post is the 2nd of my #teamsteemseries . It's been 2 weeks since the first one. I want people to go wow when they read my posts. I want to incite people to post on steem. I want to people to understand why I invest in cryptocurrecies and why I think they should too. I invite people to rewrite these information to make them clearer  and make sure to give proper credit. The statistics below were compile on 25/06/2016.

10 facts you should know about bitcoin

Introduction 

1. Bitcoin will be worth 1000$ in less than 15 days, to maintain its mining profitability. (explained below)
2. Bitcoin is one of the best performing financial asset of the last 365 days. It have gone up 155%. (explained below) 
3. Bitcoin price gain 50% since January 1 2016
4. Bitcoin price gain 160% since May 1 2015.
5. Bitoin has the 1048th biggest market cap of all the Forbes 1000th biggest public company. (1048/1000 is due to some tied in the forbes's list) 
6. Cryptocurrencies has the 889th biggest market cap of all the Forbes 1000th biggest public company.
7. At their highest point they respectivly had the 920th and 764th biggest market cap of all the Forbes 1000th biggest public company.
8. Cryptocurrencies had a bigger market cap than Toyota industries, Whirlpool, Shimano, Petronas Chemicals, Alco, just to name a few.
9. Today cruptocurrencies have a bigger market cap than Symantec, Xerox, Hasbro, Mattel, Western Union, just to name a few.
10. Cryptocurrencies other than bitcoin represent 17.60% of the total cryptocurrency's market cap.

7 Bonus facts:

1. Bitcoin price gained 90% between 25/05/2015 and 25/05/2016.  
2. No other online transferable currency has lower transaction fees. (except some other cryptocurrencies) 
3. Everyone can own some bitcoin, no need for a bank account. 
4. Bticoin price performance is poised to become the biggest economic news of the year. (probably even before the halving) 
5. Bitcoin market cap will be in the top 500 biggest publicly own company before year's end.* 
6. Cryptocurrencies market cap will be in the top 400 biggest publicly own company before year's end.*
7. These are conservative estimates projecting the steady price rise we've seen between 25/05/2015 and 25/05/2016.

Explanation

1. **On May 25 2016, bitcoin was worth 445$. Bitcoin price will double to 890$ in order to maintain its mining profitability after the halving of July 10. Bitcoin might have already been "overvalued" on May 25 2016, but this date clearly mark a point where bitcoin's price rate of appreciation have shut up way faster than in the 365 days prior. Factor in the average 0.25% daily growth we've seen in the last 365 days prior to May 25 and that leads to 940$, just shy of 1000$. The mining difficulty growth rate increase as it relate to the price of bitcoin if factored in should get us to above 1000$ before or on the day of the halving. **

2. The best year to date performing S&P 500 stocks are: Newmont Mining[106.96%], Southwestern Energy[77.5%], Range Resources[76.17%], Freeport-McMoRan Copper[56.28%], EQT [47.18%], Spectra Energy[45.57%], Cabot Oil[40.35%], NVIDIA [39.25%], Murphy Oil[38.81%], Martin Marietta[37.97%], Tyco [32.06%], NiSource [31.72%], Concho Resources[30.37%], Halliburton [29.75%], CenterPoint Energy[28.95%], Dollar General[28.57%], Cimarex Energy[28.1%]

Conclusion 

My next post in this series will be about steem price, how it relates to what I just said about bitcoin and steem as a whole. This post will build on the first 2 and it will be even more epic. The post you're reading was due more than a week ago. I hope you'll be following me on steemit. I'll add this post and all of my other team steem series to this post [here](https://steemit.com/cryptocurrency/@teamsteem/dan-larimer-said-one-of-the-most-inspiring-thing-ive-ever-heard "here"). You might want to upvote this one too.

Whether bitcoin is worth more than 1000$ or not even close to it in 15 days this post will still be worth mentionning to anyone wanting to know more about cryptocurrencies. In the end, mining profitability leads to a virtuous cycle of more mining that then makes the bitcoin price go up. Pretty much anyone who knows the very basics of bitcoin can already understand this fact. This cryptocurrency thing isn't a small enterprise. It's base on sound economic principals. It's not going away anytime soon. In fact there's all the signs that this is just going to get better.

Further clarification on mining profitability 

To illustrate this further, let's say antminer s7 still have a 10% profit margin but  would have accounted for 5% of all the electricity use to mine bitcoin. If the price of bitcoin goes down 15% then all antminer s7 become unprofitable but now antminer s9 have bigger profit margin than if the bitcoin didn't go don't 15%. This isn't true in the other scenario. I'm not sure my numbers are correct but the the idea express is mathematically sound.  

Let me expand on this. On May 25 antminer s7 were barely profitable. Let's say for every 90$ worth of electricity they would use they would get 100$ worth of bitcoin, roughly 10% profit.  Now let's say antminer s7 would have accounted for 20% of all the electricity use to mine bitcoin. If the price of bitcoin goes down 15% then all antminer s7 become unprofitable. It would decrease 20% all the electricity used to mine bitcoin making 20% less costly to mine. Every miners will have a bigger profit margin if price doesn't go down 15% and the antminer s7 continue to be profitable. This is reflected in the buy/sell pressure. 

References 

[1] Cryptocurrencies in the S&P 500
[2] Bitcoin Charts
[3] The World’s Biggest Public Companies List - Forbes
[4] Forbe's Pastebin
[5] Best S&P 500 Stocks
[6] Dan Larimer said one of the most inspiring thing I've ever heard (CTO of Steemit, founder of Bitshares)