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Author Topic: What happens to Chinese mining companies if there is no halving price rise?  (Read 1660 times)
techgeek
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April 09, 2016, 09:38:59 PM
 #41

Most of them have yearly electricity contracts, that are already paid. They will mine no matter what.

This is pretty much spot on.

Early contracts of their overhead cost is paid a year in advanced to avoid the price flux in a sense, just gotta worry about the price in $100 margins though.

Or anything that would make it to that price.

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April 09, 2016, 10:16:52 PM
 #42

They'll likely still be at a profit and have made his math taking into account the different possibilities. Chinese tend to be smart.

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April 09, 2016, 10:22:50 PM
 #43

Will they go under?  Can they survive on half the amount of income?
they will have to survive until difficulty updates to reflect the lower price. Some may won't be able to do that and will change their business model or die. But the biggest players, if they hold many bitcoins, may hedge against that. They may push the price arbitrary low and collecting back their bitcoins at much lower prices will earn enough to compensate the lack of income from mining. I wouldn't be afraid about them.

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April 20, 2016, 08:15:56 AM
 #44

Will they go under?  Can they survive on half the amount of income?
they will have to survive until difficulty updates to reflect the lower price. Some may won't be able to do that and will change their business model or die. But the biggest players, if they hold many bitcoins, may hedge against that. They may push the price arbitrary low and collecting back their bitcoins at much lower prices will earn enough to compensate the lack of income from mining. I wouldn't be afraid about them.

Most of the Chinese mining companies will survive. They have cheap electricity price from Hydroppower.
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