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Author Topic: Question on theory ...  (Read 1847 times)
Amph
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August 05, 2013, 08:47:58 AM
 #21

this is a big problem, at the end the money maked with the first purchase, are needed for the next one and so on, in this way you will never make any profit(ora at very least a tiny one...)
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DigitalHermit
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August 06, 2013, 02:23:03 PM
 #22

this is a big problem, at the end the money maked with the first purchase, are needed for the next one and so on, in this way you will never make any profit(ora at very least a tiny one...)

A problem for who? It's just a market like any other; there will be winners and losers; right now the mining equipment manufacturers are big winners in terms of ROI and miners for the most part will be losers.

It is natural and normal that profit margins get squeezed to near zero over time and those who are unable to maintain a profit margin will be squeezed out of the market as they should be. Mining speculators should be knowledgeable about these risks and should be willing and able to accept them. If not, they should stay out of the market.
BTCThousandaire
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August 06, 2013, 07:05:08 PM
 #23

One thing everyone seems to miss is that Bitcoin is deflationary. The amount of Bitcoin generated drops quickly, but as price goes up and value of smaller amounts increases, that allows new mining equipment to become profitable again at reduced Bitcoin prices.

Trongersoll
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August 06, 2013, 07:10:57 PM
 #24

One thing everyone seems to miss is that Bitcoin is deflationary. The amount of Bitcoin generated drops quickly, but as price goes up and value of smaller amounts increases, that allows new mining equipment to become profitable again at reduced Bitcoin prices.

Bitcoin will only be deflationary once all the bitcoins have been produced. until then inflation is the rule.
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