So if the exchange rate drops....

[byronbb]

...and you paid for your miner with now expensive coins, do you buy back those bitcoins with fiat, to effectively pay less for your miner?

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[hl5460]

No, I will dump and rebuy.....

[crazyates]

So you buy a miner using BTC, with the price at $100USD/BTC. You pay 25BTC.

Price drops to $50USD/BTC. Your miner that previously cost 25BTC now cost 50BTC.

You buy 25BTC at $50USD/BTC, totalling $1250USD. You think this somehow means you paid $1250 for your $2500 miner?

What's paid is paid. Buying back coins after the fact doesn't do much.

I bought a Newegg gift card a long time ago, when the price was between $2.50-3USD/BTC. Used it to pay for an SSD. Now, does the fact that I paid 45BTC make it a $4,500SSD? No, it's still a $120 SSD.

[byronbb]

So you buy a miner using BTC, with the price at $100USD/BTC. You pay 25BTC.

Price drops to $50USD/BTC. Your miner that previously cost 25BTC now cost 50BTC.

ORLY? Because I think a USB Eruptor cost ~2btc when the price was at $115 and costs ~2btc now at $100.

[crazyates]

So you buy a miner using BTC, with the price at $100USD/BTC. You pay 25BTC.

Price drops to $50USD/BTC. Your miner that previously cost 25BTC now cost 50BTC.

ORLY? Because I think a USB Eruptor cost ~2btc when the price was at $115 and costs ~2btc now at $100.

So I think what you're asking depends on whether the item being purchased is priced in USD, or BTC. That 2BTC price does not fluctuate. A BFL Jalapeno is priced in USD, so the BTC paid will vary depending on the exchange rate.

[Soros Shorts]

Forget what you paid for the miner. The only important things about the miner are:

• Its potential future earnings, in BTC and in fiat. This requires estimating difficulty and exchange rate at various points in time in the future
• What people are willing to pay for the miner now. You might get a good deal selling it to someone.