GHS/BTC

[jballs]

Noticed the sharp drop at cexio and very flat btc price in recent days. I assume this is a side effect of difficulty rise on btc. 

Is it at the point a question of difficulty falling vs price rising for mining to have any profit?

Is mining at these rates purely speculative (loss generating) in hope of higher future prices?

 

[Proteus123]

Oh, you can profit. What you do is buy a ton, mine for a day or two, then sell at similar price.

So if I buy 1 GHS and sell back at same price the next day, I make $0.20 USD.

If I buy 1000 GHS and sell back at same price the next day, I make $200.

[jballs]

Oh, you can profit. What you do is buy a ton, mine for a day or two, then sell at similar price.

So if I buy 1 GHS and sell back at same price the next day, I make $0.20 USD.

If I buy 1000 GHS and sell back at same price the next day, I make $200.

I get that, but doing so is a proxy market, futures essentially. I am more confused as to what that implies for the basis. Btc is trying to break to the upside and seems to be a strong inverse correlation with ghs drops and btc rises but it is not clear to me which causes which.