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Author Topic: What are miners doing with their profits?  (Read 2970 times)
notlist3d
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March 03, 2016, 04:44:10 AM
 #21

People need to live and people are free to spend their money however they wish, as long as it isn't hurting others.

It is hurting us if they dump it all on the exchange for worthless fiat  Sad

They should hold on to more of it.

I think you will find it's not regular people causing most of the dumping.  The big mega miners are ones who I suspect do the most dumping.  They have machines they want to pay off in fiat, and also big expenses.  Also once they cash it out they have profit on books. 

I think home/hobby account for very small section of dumping.  I personally re-invest after expenses. I'm in it for the long term for the most part... so guess we wont know for a while if I did right thing or not.
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March 03, 2016, 05:09:56 AM
 #22

People need to live and people are free to spend their money however they wish, as long as it isn't hurting others.

It is hurting us if they dump it all on the exchange for worthless fiat  Sad

They should hold on to more of it.

I think you will find it's not regular people causing most of the dumping.  The big mega miners are ones who I suspect do the most dumping.  They have machines they want to pay off in fiat, and also big expenses.  Also once they cash it out they have profit on books. 

I think home/hobby account for very small section of dumping.  I personally re-invest after expenses. I'm in it for the long term for the most part... so guess we wont know for a while if I did right thing or not.

Honestly its hard to tell, i watched a documentary a while ago, where many miners were interviewed, chines ones (with cheap electricity) and some of the bigger individual ones and most of them were in a loss and still kept going.

They were all in the long term.

Look it this way, if we win, we will be the new elite. If we lose we lose a few months/years and a big portion of the capital invested.


I think the upside potential is far greater than the downside.

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March 03, 2016, 10:40:29 AM
 #23

I doubt most miners are making serious cash. Unless you mine with chinese electricity prices.
Right now I think only bitfury and Spondoolies Tech miners are making a good profit. Bitmain overcharges their machines because they are not that efficient.
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March 03, 2016, 06:36:12 PM
 #24

People need to live and people are free to spend their money however they wish, as long as it isn't hurting others.

It is hurting us if they dump it all on the exchange for worthless fiat  Sad

They should hold on to more of it.

I think you will find it's not regular people causing most of the dumping.  The big mega miners are ones who I suspect do the most dumping.  They have machines they want to pay off in fiat, and also big expenses.  Also once they cash it out they have profit on books. 

I think home/hobby account for very small section of dumping.  I personally re-invest after expenses. I'm in it for the long term for the most part... so guess we wont know for a while if I did right thing or not.

Honestly its hard to tell, i watched a documentary a while ago, where many miners were interviewed, chines ones (with cheap electricity) and some of the bigger individual ones and most of them were in a loss and still kept going.

They were all in the long term.

Look it this way, if we win, we will be the new elite. If we lose we lose a few months/years and a big portion of the capital invested.


I think the upside potential is far greater than the downside.

They interviewed the wrong ones then... these mega mines are making huge profit's.  Cheap electricity and a some linked to makers of machines.... that leads to massive profits.

It's common sense these big mines are the ones doing the most dumping.  And they can keep some but they are a far bigger percent of machines hashing then the home/hobby miner.

Home/hobby miners are small portion of hash at this point.
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March 04, 2016, 12:30:47 AM
 #25


They interviewed the wrong ones then... these mega mines are making huge profit's.  Cheap electricity and a some linked to makers of machines.... that leads to massive profits.

It's common sense these big mines are the ones doing the most dumping.  And they can keep some but they are a far bigger percent of machines hashing then the home/hobby miner.

Home/hobby miners are small portion of hash at this point.

Well the free market will sort them out.

If they dump now because they are impatient, and the price goes up later, they miss out on big profits. So maybe they will save more next time.

But at the same time by dumping now, they let many newbies buy bitcoins cheap now, rather than buy later more expensive.

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March 04, 2016, 03:55:29 AM
 #26


They interviewed the wrong ones then... these mega mines are making huge profit's.  Cheap electricity and a some linked to makers of machines.... that leads to massive profits.

It's common sense these big mines are the ones doing the most dumping.  And they can keep some but they are a far bigger percent of machines hashing then the home/hobby miner.

Home/hobby miners are small portion of hash at this point.

Well the free market will sort them out.

If they dump now because they are impatient, and the price goes up later, they miss out on big profits. So maybe they will save more next time.

But at the same time by dumping now, they let many newbies buy bitcoins cheap now, rather than buy later more expensive.

You say that but really there is nothing that makes right now that cheap.  It is current price.   Cheap... look back 220's through there now that was cheap. 6 months or so ago... now looks cheap.  Right now is market price.

So yes we hope it goes up and speculate it hopefully.  But there is no guarantee's in this game at all.
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March 04, 2016, 09:13:55 AM
 #27

When I have a significant amount of profit, for the near term it will probably go into more of whatever hardware is actually generating a profit for me.

 9-)


 I strongly suspect the big mines aren't as profitable as many folks assume - they've been hit by diff increases like everyone else, they just tended to get hardware cheaper so they could RoI it somewhat sooner.

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March 04, 2016, 09:56:40 PM
 #28

When I have a significant amount of profit, for the near term it will probably go into more of whatever hardware is actually generating a profit for me.

 9-)


 I strongly suspect the big mines aren't as profitable as many folks assume - they've been hit by diff increases like everyone else, they just tended to get hardware cheaper so they could RoI it somewhat sooner.

Yes but look at the ones owned by Bitmain.  Do you think they pay near per unit as we do? I highly doubt it.   Also electricity it no doubt is a few cent's.   How many .... hard to saw.    But would bot surprise me 1-2 cents.

I think ones linked to manufacture are most profitable.  Second I think the big mega mines, again they are getting discounts due to amount they buy.   And again very cheap electricity.   

There has to be a lot of profit or they would not continue to re-invest.
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March 04, 2016, 11:39:39 PM
 #29


You say that but really there is nothing that makes right now that cheap.  It is current price.   Cheap... look back 220's through there now that was cheap. 6 months or so ago... now looks cheap.  Right now is market price.

So yes we hope it goes up and speculate it hopefully.  But there is no guarantee's in this game at all.

Haha and I was hesitant to buy at 150 euro, now soon the 400 euro will be the cheap one as we go through 1000 euro.

Miners will probably get their ROI pretty soon.

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March 05, 2016, 12:06:08 AM
 #30

Honestly, is their really money to be made with mining. I mean being a home miner not a big firm with enough money?
I doubt it. I bought a lot of S3's a while back and my earnings were just around 1k.
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March 05, 2016, 09:39:27 AM
 #31

My BTC profits go to cover the losses I made "investing" in scam altcoins.  I'm attempting to achieve coin equilibrium.
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March 05, 2016, 11:46:41 AM
 #32

In the old times I used to re-invest, now I have much less time and my rigs are often offline. Making profit with home mining is more and more difficult Smiley
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March 06, 2016, 09:03:48 AM
 #33

Honestly, is their really money to be made with mining. I mean being a home miner not a big firm with enough money?

 Right now, no. But there have been times in the past and probably will be a time in the near future that home miners will be able to mine for a profit again - if your electric is cheap enough.


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March 06, 2016, 01:51:34 PM
 #34

Honestly, is their really money to be made with mining. I mean being a home miner not a big firm with enough money?
I doubt it. I bought a lot of S3's a while back and my earnings were just around 1k.

That is a lot on poor countries, so many guys from there might sell and have their money in their pockets to 'feel good'.

But who knows, this metric doesnt really tell anything.



I look for more scientific statistics if there is any available.

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March 06, 2016, 10:03:07 PM
 #35

Most of the coins are likely being sold to pay for mining expenses at these levels unless there is evidence that most miners are real speculators and they are off-setting their expenses so they can take a mine & hold strategy?

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March 07, 2016, 12:13:08 AM
 #36

Most of the coins are likely being sold to pay for mining expenses at these levels unless there is evidence that most miners are real speculators and they are off-setting their expenses so they can take a mine & hold strategy?
Holding and trading are better ways to make bitcoin than just selling; a good trader can make money from his miners even if the miner has negative roi assuming the market is good. holding isn't a good idea at the moment, because btc seems to be holding at the price of 400 at the moment. But yes , most miners do sell their bitcoin as it is the best and safest option besides trading or holding.
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March 07, 2016, 04:12:00 AM
 #37

Most of the coins are likely being sold to pay for mining expenses at these levels unless there is evidence that most miners are real speculators and they are off-setting their expenses so they can take a mine & hold strategy?
Holding and trading are better ways to make bitcoin than just selling; a good trader can make money from his miners even if the miner has negative roi assuming the market is good. holding isn't a good idea at the moment, because btc seems to be holding at the price of 400 at the moment. But yes , most miners do sell their bitcoin as it is the best and safest option besides trading or holding.

Trading is not something simple or it would be easy money.  Day traders yes can gain huge profits but if your on the wrong side of it you lose lots of money.  It's much easier to say trading then actually doing it.

Long term holding is much easier, and should be less risky.  I prefer long term holding for general public over trying to trade large amounts.  I urge caution when trading. 
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March 07, 2016, 07:14:28 AM
 #38

Most of the coins are likely being sold to pay for mining expenses at these levels unless there is evidence that most miners are real speculators and they are off-setting their expenses so they can take a mine & hold strategy?

only 1/4 are sold, you can do an easy math based on the consumption and the earning to see this, unless they are buying new HW every day, but even in this case those will roi fast

the theory behind which miners are selling 3600 coins a day is flawed, they are not selling even 50% i believe, there is no reason, it's better to speculate now that the halving is coming
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March 07, 2016, 07:22:14 AM
 #39

Honestly, is their really money to be made with mining. I mean being a home miner not a big firm with enough money?
I doubt it. I bought a lot of S3's a while back and my earnings were just around 1k.

If you get to mine ETH long before it went 0.02 you could have profited 10x for what it is now.  And so if you have mine btc long before it reach 1200 USD you should have been celebrating.  I'm no miner but I can see some mine altcoins which they think can grow and they are easy to mine during the start..maybe you wanna check WARP coin.

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March 07, 2016, 08:40:31 AM
 #40

Most of the coins are likely being sold to pay for mining expenses at these levels unless there is evidence that most miners are real speculators and they are off-setting their expenses so they can take a mine & hold strategy?
Holding and trading are better ways to make bitcoin than just selling; a good trader can make money from his miners even if the miner has negative roi assuming the market is good. holding isn't a good idea at the moment, because btc seems to be holding at the price of 400 at the moment. But yes , most miners do sell their bitcoin as it is the best and safest option besides trading or holding.

 But you'd make MORE if you didn't mine, in that case.


 I tend to hold when I think the price is low, and sell when I think it's high - hasn't gotten low enough the last few months for me to buy, and it's getting close enough to the halfing that I'm almost ready to reset my "buy/hold/sell" thresholds.

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