Bitcoin Forum
December 03, 2016, 04:40:41 AM *
News: To be able to use the next phase of the beta forum software, please ensure that your email address is correct/functional.
 
   Home   Help Search Donate Login Register  
Poll
Question: If you were losing money on mining, would you continue?
No, because no. - 17 (29.8%)
No, because Bitcoin's days are numbered if something this drastic were to happen - 2 (3.5%)
Yes, because I believe that with such a drastic drop, the market would bounce back in the near future. - 15 (26.3%)
Yes, because I believe in Bitcoin as a currency, and want to see it succeed - 13 (22.8%)
Yes, because the amount of mining power I have makes a negligible impact on my electric bill. - 6 (10.5%)
Yes, because I don't pay for my electricity! - 4 (7%)
Total Voters: 57

Pages: [1]
  Print  
Author Topic: POLL: Would you keep mining at a loss?  (Read 1402 times)
SgtSpike
Legendary
*
Offline Offline

Activity: 1344



View Profile
June 01, 2011, 09:27:35 PM
 #1

Say that the value of bitcoins dropped so drastically that it was suddenly costing you more in electricity to continue mining, compared to the value of the bitcoins you were generating.  Say this drop happened last night, and it is the next morning when you realize this.  Also assume that the drop resulted in you generating only 75% of the value in bitcoins as what you are paying for electricity to mine.  You have no idea whether the market would bounce back, or whether it was a permanent drop to this new valuation.

Would you continue mining?
1480740041
Hero Member
*
Offline Offline

Posts: 1480740041

View Profile Personal Message (Offline)

Ignore
1480740041
Reply with quote  #2

1480740041
Report to moderator
1480740041
Hero Member
*
Offline Offline

Posts: 1480740041

View Profile Personal Message (Offline)

Ignore
1480740041
Reply with quote  #2

1480740041
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1480740041
Hero Member
*
Offline Offline

Posts: 1480740041

View Profile Personal Message (Offline)

Ignore
1480740041
Reply with quote  #2

1480740041
Report to moderator
Jaime Frontero
Full Member
***
Offline Offline

Activity: 126


View Profile
June 01, 2011, 09:35:20 PM
 #2

yes.  for awhile, anyway.

reasons 4 & 5 combined.

i'd probably cut back to my best miner - to support the network.  it just isn't that much money /month not to protect my investment, at least for a few months.
SgtSpike
Legendary
*
Offline Offline

Activity: 1344



View Profile
June 01, 2011, 09:56:26 PM
 #3

Personally, I kind of think that we'd see a drastic bounce-back of the market to compensate for such a drop.  I haven't run the numbers recently, but I'd estimate that anywhere above $1.25/btc, I would remain profitable mining.  I can't imagine it dropping to $1.25 and not bouncing back.  There's too much support here.  Too many people who believe in the idea for it to have a complete spiral to the bottom, at least when looking at it from the perspective of a panic-sell situation.

I know I'd probably be lining up to buy bitcoins if they were only $1 each again.  Cheesy
grue
Global Moderator
Legendary
*
Offline Offline

Activity: 1932



View Profile
June 01, 2011, 10:00:09 PM
 #4

no. if i was losing money, i would stop my miners, and buy bitcoins normally.

It is pitch black. You are likely to be eaten by a grue.

Tired of annoying signature ads? Ad block for signatures
cloud9
Member
**
Offline Offline

Activity: 70


View Profile
June 01, 2011, 10:04:42 PM
 #5

Sitting with the capital investment anyway - with running electricity costs only a small fraction of the total hardware costs - I would say that it would be best to stay mining with an outlook of a better future price.  And also buying at the lower cost with easier profits due to probable lower difficulty and lower network hash due to other miners dropping out, but not letting the capital go idle.

Disclaimer:  Postings of Cloud9 are only individual views of opinion and/or musings and/or hypothesisses.  On a non-authoritative, peer-to-peer public forum, you do not need permission from Cloud9 to derive your own conclusions or opinions, so please do.  Calculations and assumptions to be verified.
fpgaminer
Hero Member
*****
Offline Offline

Activity: 546



View Profile WWW
June 01, 2011, 10:08:16 PM
 #6

Yes, because my miners are hooked up to a stationary bicycle with a generator attached. Free electricity!  Wink

xenon481
Sr. Member
****
Offline Offline

Activity: 406



View Profile
June 01, 2011, 10:14:38 PM
 #7

No, because it is stupid to pay $1.00USD in electricity costs to generate $0.75USD worth of BTC when I could instead spend $1.00USD to purchase $1.00USD worth of BTC.

Tips Appreciated: 171TQ2wJg7bxj2q68VNibU75YZB22b7ZDr
SlaveInDebt
Hero Member
*****
Offline Offline

Activity: 702


Your Minion


View Profile
June 01, 2011, 10:17:49 PM
 #8

I would continue because I support BTC as a currency. Did lots of distributed computing before this for no monetary gain and I feel just as strongly about BTC and what it can do for man kind as I do about disease research and other projects.

"A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain." - Mark Twain
SgtSpike
Legendary
*
Offline Offline

Activity: 1344



View Profile
June 01, 2011, 10:24:09 PM
 #9

No, because it is stupid to pay $1.00USD in electricity costs to generate $0.75USD worth of BTC when I could instead spend $1.00USD to purchase $1.00USD worth of BTC.
Good point - I should have had that as a poll option.
rezin777
Full Member
***
Offline Offline

Activity: 154


View Profile
June 02, 2011, 02:40:43 AM
 #10

I've always mined at a loss (in relation to other currencies).

So, I have a hard time with this poll.
airdata
Sr. Member
****
Offline Offline

Activity: 406


View Profile
June 02, 2011, 03:04:04 AM
 #11

if it drops to 1.50, hit me up via pm and I'll buy 1000btc off of you.

I just got started and really want to give it a full month to guage costs / gains.  I probably will never stop being jealous of all of the people lucky enough to get in early.
da2ce7
Legendary
*
Offline Offline

Activity: 1218


Live and Let Live


View Profile
June 02, 2011, 03:10:37 AM
 #12

You would stop mining only if you directed the leftover funds directly into bitcoin thorough an exchange.  There are some interesting economic dynamics:

Electricity bills are not instantaneous, but on credit.  So all the miners are really taking out bitcoin futures that the price isn't going to be worth less when paying the electricity bill.
Miners also need to take into account the cost of buying the coins 'now' v.s. mining the coins  on credit.

A rational miner would work out what had a better return:  Buying coins now from an exchange v.s. mining now and paying for the coins later in your electricity bill.

One off NP-Hard.
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!