The bottom line. Mining is so profitable at the current price it will never sustain it's current ROI long term.
Mining competition is coming at current bitcoin prices and difficulty. And people will invest money in mining until it becomes unprofitable. To me a in a speculative market like bitcoins at the current difficulty 3 times cost of production seems reasonable.

Do you really think this anomaly of mining for almost free money will continue very long?

Write some puts on the option exchange I they will get snapped up fast

It's simple the ease of entering the market means more miners are coming.
I'm sure there's a endless supply of people in the world who would be happy to make 30% on their money mining bitcoins. Which means say goodbye to 15 times your cost of productionin the near future. It doesn't matter about the end supply number of bitcoins. Competitive mining is coming which will lower the price of bitcoins.

The Mining forum is full of people saying mining isn't worth it. They're only saying that to discourage people to mine(they want it to themselves) by saying that it encourages people to buy bitcoins which miners are selling to cover their costs.

It's not a guaranteed 72% unless bitcoins are worth what you paid for them before the option expires.

I wish someone would starting writing puts come on pumpers put your money where your mouth is

Anybody with $700 can start mining for a current cost of $2 per bitcoin and sell it for 13 times the cost.
So yeah it's a bubble.

If you could setup a gold mine today and mine gold for $115 an oz and sell it for $1500 oz how long do you think gold would continue selling for $1500 oz.

Wake up

Short term bullish on amd but long term bearish. When bitcoins crash there's going to be a ton of used amd products for sale

Even at $2 cost of production the price of bitcoins has overshot any sense of reality.
Even with a couple of months worth of increased difficulty built into the current price it's current price is a bubble.

What are the barriers to entry a $700 -$1000 machine.

It takes very little knowledge to start mining for bitcoins.

This will end very badly for anyone who has invested in bitcoins in the last 30 days

Does this conference even exist?
Look around the net.

Kind of like mining for BitCoins huh

$300 per oz cost of production was for year 2000 and gold was trading at close to that. The production cost of gold is higher now $450.

I was going off of memory for production costs and just looked it up and saw it has gone up. So gold is 3 times production cost not 5. And yes that includes all costs

Question was already asked here no real answer yet
http://forum.bitcoin.org/index.php?topic=13882.0

crickets

They'll never use bitcoins too risky. They want cash. How would they turn bitcoins into cash without the transaction being tracked?

Don't forget that Gold was valued at it's cost of production for almost 10 years.
Right now gold is 5 times it's cost of production.

Bitcoins cost of production are about $1

Thanks for clearing this up.
Glad you changed the system to work closer to how things are run on the CBOE.

I see things have changed on the site

Is a BTC call a call now Like when you buy a call you're betting the price of BTC goes up?

Is a BTC put a put now Like when you buy a put you're are betting the price of BTC to go down?

I assume these prices are in USD now?

Assuming above
Can you go over the exercising of a put option if I was a put buyer that wanted to exercise the put I bought.

If I am paid in BTC as a put buyer who has exercised my put I have a problem in my mind of even making a trade. For one I will be paid in BTC which I think has no value. If the value of BTC is cut in half before I can trade it for cash I could still lose money even though I was right.

Reverse the mechanism I'm sure it will help your business

This goes back to my original post on here that the governments are really the last worry.
The worry should be the new user who is treating this as a gamble on the future price of BTC.
It's just like the housing bubble in the US where people had access to easy credit bought all the inventory and prices rose too fast.
Once bitcoins have a serious correction in price all the buyers will be gone.
All the get rich quick people will stampede out.

The bitcoin system is flawed
It need's to decrease difficulty as prices go up which will stabilize price because of the increase in bitcoins.
Of course you would still limit the total coins but until you hit 21 mil coins you could maintain a stable currency which would make businesses accepting it a easier proposition.
I would think the developers know this and why it doesn't work like this points to only one thing.
They don't want a stable currency they want it to run it up as high as they can and cash out. 


 

You guys have lost your mind
As a business accepting bitcoins requires too many steps
Step 1 wait 10 minutes to several hours for a confirmation of payment
Step 2 worry that while you're waiting for confirmations the price of bitcoins doesn't fall
Step 3 trade your bitcoins on an exchange for cash
Step 4 wait several days for money to arrive in your bank account

Please

WTF
Sure it's stacked.
How does someone buy a put and bitcoin goes to ZERO make money?