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Benefactor (OP)
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August 18, 2013, 05:44:58 AM |
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Where Would You Like to Go?
Whether it was in the plan all along, or these are newcomers, the PTB are into BTC, working both ends. …Working to accumulate and control, originate and exploit, or the typical bankster culling and criminalization, then writing misleading Corporate News articles of their exploits for the remaining ignorant masses. (Assuring late adopter population, I’m sure.)
I’m writing about mining, today. It isn’t profitable. What can be done to correct this? Lower the cost of entering the market, i.e. ASIC hardware. (I’m no expert on mining at all, but I’m assuming only ASICS can keep up with demands at this point?) Clearly, there are typical microeconomics to apply here, which preclude ‘give away’. Either new competition will need to enter the mining hardware manufacturing market, or existing sources can continue to innovate, lowering costs.
Still, another option is that higher BTC prices per fiat will act as a ‘savior’ in this situation. It does appear that 1.) BTC prices might be trending higher, again. (This could be explosive in the next, say, 3 months, IMHO, BTW.) 2.) The $USD finally appears to be weeks to months from a once-in-a-century fall of the predominant world currency. …Niice.
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Mining isn’t profitable. Sure some, (really plenty of-) niches can be eked out for individuals to continue to find profit or relative profit in the current economics of the cryptoworld, whether involved in the promotion of BTC or investor services or exchanges or sales of real goods and traditional services or trading or contract-writing, (or scamming, etc. (not promoting it, just stating a fact.))
Problem is, in my own experience getting started with the new Erupters, due to increased difficulty and the expanding supply of miners and total hashing power, a small market entrant, even an efficient one, doesn’t really get back the BTC spent on hardware/power/costs.
Folks, we are centralizing power, currently, into larger mining hands, and especially the few manufacturers, into an oligopoly, at the cost of the majority of small hands losing net BTC ownership. Perhaps by early next year, a small-time miner, (call it under 10Ghps,) will see a profit in $USD terms, but may never recover in BTC terms, (maybe without constant reinvestment, which is quite risky.)
Compounding the issue for the small hands are production delays and concerns about large investors sweeping in and leaving them in the dust.
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Building a Better World?
What I’ve described seems very normal in the contemporary world of cutthroat capitalist, free-market economics, but we don’t even have the older ostentatious protections from scammers! I just came across a slick website today for a non-existent 5Ghps unit! I would feel sorry for a fool who couldn’t research adequately to spot the scam for what it was!!! That’s not a ‘better world’. That’s the same ol’ $h1t, just looking different.
Let’s look at this apparent flash-in-the-pan ASIC Erupter phenomenon. It’s really great for BTC! It is! This is the spore method of network propagation and survivability! This gets processing into many hands, increasing nodes, but why? Where are the economic incentives for the little guys? We’re dumping already! Hardware prices plummeting, with yet another half-generation of BTC market participants getting burned, some to collapse, while the rising oligopoly withholds shipments! Ha, ha, very funny. You win. That’s not a ‘better world’.
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I’m not saying that I have all the answers, but I do have a few ideas, so please expand on them if any work for you. I encourage you all to continue brainstorming for creative solutions as well.
1.) Some components of the cryptoworld, such as, but not limited to, currency exchange and trading sites, purveyors of real goods and services, etc. can offer discounts to miners. (I’m not even sure how miners would validate their claim of hashrates, but I’m confident the solutions are there in this case.) The purpose is to promote as many individual ‘nodes’ in the mining network as possible in the spirit of ‘anti-fragile’, but especially to offer incentive for people to run even just one ASIC miner or even an ol’ GPU. :-)
2.) Encourage additional mining pools, (a few). It seems there would be an advantage to having more pools and drawing participants from the larger pools. Right now, it seems this part of the BTC infrastructure is vulnerable to jealous-god government attack, otherwise. (I may be way off, since I don’t know the details.)
3.) Oligopoly or other large hands can start-up a fund to encourage the new, smaller miners by offering special incentives. Maybe buy up a failed scamcoin (SC) or something to distribute, and then whenever any entity experiencing something I philosophically call [bounty], which is an abundance that can only be dumped on a market harming the same supplier’s bottom line, for any good or possibly service, they can offer it just for the (SC) redemption. Just an idea, you know? Maybe someone printed too many BTC t-shirts, and prices are falling. SHARE THEM. Encourage the little miners. That’s a better world.
4.) Get your engineering buddies together and figure out how to manufacture ASICS. There’s plenty of money in that! We need new suppliers – the one’s we have are….(I won’t spell it out.)
5.) There has got to be a way to squeeze more hashpower out of existing hardware! (I have seen one advertisement of a service to do just this.)
6.) [Add your ideas, too! Find solutions.]
Ultimately, the purpose of BTC can be an opportunity to distribute liquidity MOST BROADLY to the masses, so they may finally have access to the resources which have been present and plentiful all along, with the barriers finally removed for us to live out dreams, creativity, expansion, evolution.
I understand even now the majority of stakeholders don’t want this. If nothing else, then, if you do agree with my principles, by reading this, you can add to your clarity in perception of the unfolding progress of the cryptoworld. You are aware.
Start small. We don’t need more, more, more, we don’t need scamming, especially with false hope from the mining hardware oligopoly; and we certainly don’t need the Valkyries of the PTB marching into the BTC field. We need to cooperate now. Please help to make a real, better world.
Thank you.
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