Bitcoin Forum

Hi guys,

Trying to get a feel for why people are mining and what their expectations are of BTC.

Personally I'm mining because it is hard to buy where I live and I want to hoard them for a year or more.

I am mining until I can get at least 10 Bitcoins together (which seems like it will take months). I will turn it into USD as quickly as possible, and of course, repeat the process.

Can the guys who are selling it all please comment and let me know what your motivations are?

Since the market is so volatile, my motivation for selling is for the market to then crash and to buy them back up.  Rinse, repeat.

What about actually using the coins to buy goods and services, for god's sake... If "selling" and "cashing out" covers that, please clarify in the options. Maybe use "spend" instead?

Spend has been added. Are you spending btw? ;)

+1

I've got 4 rigs, and I do some speculation on the price rising and falling. Doing nicely so far :)

The mined coins, I am not too bothered about keeping hold of them till some price is reached that is way over the current price. All money made is money that my machines have made for me with me doing nothing more than making sure they are running. And now with all my kit paid for, the profit is going towards social, holidays and the like.

Loving the BTC / NMC way :)

Hey Chucksta,

I'm also sitting on my NMC stash after our last interaction and will prob switch to NMC again after the BTC difficulty increase if the NMC wants to just strengthen a bit :)

Let's say, most of the coins (or more than half the temporary USD value of coins) that got out of my wallet were for goods, services and donations, so I have also sold some for USD.

I had almost stopped mining early this year, but started again recently (partnered with a friend who's interested in mining), and I always keep my portion until I find something interesting I can spend it on (although I save some of it). I have constant use for hosting for instance. Also freelance programmers. :D If you do want to spend, you can always get inventive. Plus, you get more value out of it because there are lots of (potential) offers here that you won't find easily in the market. It's a good way to get in touch with interesting people as well...

Plus, there isn't much fun in mining otherwise. It's just too much monotonous work (if you aren't very fond of plugging electronic devices). I like seeing the investment/effort I put in mining be directly converted to something I use. I made the investment, and it will constantly return to me as shiny new stuff.

i sell pretty much anytime i can get more then 15 USD for 1 BTC.

Well so far, judging by the results, 50% of newly minted BTC should show up on some exchange or for sale somehow.

At the current rate of block resolution that's about 6000 BTC?

If more folks vote we can get a more accurate read on this.

Judging by the MtGox monthly trade volumes that's 6000 of the aprox 10000 BTC daily volume. If all other markets together were the size of MtGox (fair assumption?) then 30% of all the sales volume were due to miners unloading BTC. Not that I'm pushing it but if more hoarded, prices would rise considerably.

OOPS daily average volume was 49K BTC, my bad. Still there would be far fewer bitcoins to circulate.

If you want to weigh in on your willingness to test price sensitivity to mining sales vote here.

http://forum.bitcoin.org/index.php?topic=21703.0

What joker voted for this!? ;-)

LOL

NMC mining due for a 68% decrease (and falling) in difficulty on 24th of July - http://dot-bit.org/tools/nextDifficulty.php
Current price, roughly: 0.03 BTC per NMC

http://dot-bit.org/tools/nextDifficulty.php

Hectic, that's 6 weeks on 2016 blocks!

The next BTC difficulty will justify re-pointing the miner to NMC if the price holds.

Yep, definitely.... keep ya eyes peeled :)

Hmm? As far as I can tell namecoins are definitely not worth it at the moment. .025NMC / BTC means that you need to collect 40Namecoins to equal 1 bitcoin, or in other words, bitcoin difficulty would have to be 40 times greater to justify the switch. Currently difficulty sits at 1379223 /  55882 or 24x only. In 6 weeks or so when the difficulty of namecoin drops it might be potentially profitable again, or if the price jumps to > .042BTC / NMC (and you somehow avoid a lot of fees) then you could look to namecoin mining being superior again. Unless you meant the next jump after 1.37mil to whatever it will be (it would have to be 2.23mil to reach the 40x target).

The more I get to do with it the more I wonder if namecoin was as well thought out as bitcoin...

while i am mining them, i'm also trying to earn them in otherways to hoard.

its still profitable to mine for me but not to invest in another rig if the value doesn't go up. but i'm hoarding the ones that i do make because i'm speculation they will go up and will be profitable for me in the end. i'm also buying a namecoin domain a potential investment.

The only problem being; Repeating the process months down the road will take 5-10 times longer than it did the first time around.
This strategy seems pretty obsolete, the only thing that makes sense for small miners is to wait for the price to climb up substantially.

If you just sell everything you earn at current spot rate (maybe 0.20btc per day for a small miner)
your income will just keep getting lower & lower until you can't generate anything & have no BTC left,
so all you have is your hardware, no bitcoins, and no chances of generating any bitcoins.

http://www.bitcoinminingaccidents.com/?p=335