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Author Topic: butt hurt miners  (Read 1616 times)
xali
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August 19, 2011, 05:08:42 PM
 #1

I just realized something. Consider the following 2 facts

The people that are selling bitcoins most are the miners. They mine and then they sell to pay for the mining gear/electricity.

Miners are all complaining about how the value is so low and that they can't make a profit anymoar and even that they can't break even.

WELL MAYBE IF SO MANY OF YOU WEREN'T MINING AND SELLING THE RATE WOULDN'T DROP SO MUCH

tldr stop mining.

Smiley ;/)
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tacotime
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August 19, 2011, 05:14:11 PM
 #2

or mine more, sell less.

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newminerr
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August 19, 2011, 05:15:51 PM
 #3

or mine more, sell less.
Or mine more and get a job  Roll Eyes
fcmatt
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August 19, 2011, 05:17:04 PM
 #4

If a miner cannot make a profit at a price of 11 per BTC they did something horribly wrong
or live in one of the most expensive places possible for electricity. Hawaii perhaps could be
an example of pricey electricity making mining tough.
SlaveInDebt
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August 19, 2011, 05:53:24 PM
 #5

I believe we are seeing the down fall of many who ran out bought $10K worth of gear on credit thinking $30/20/15 was going to be the going rate. The end of the month came the power bill was beyond expectation, exchange value faded away, the air conditioning never quiet running same as the wife's mouth, and that first months credit card bill was due. You also have those that are fresh into mining not confident that bitcoin is here to stay or at least channels to convert btc to usd so they cash out on a daily basis as they would rather have USD than hold BTC. As time goes on the weak and foolish will be run out and those with good btc practices will remain.

"A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain." - Mark Twain
Dubs420
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August 19, 2011, 10:11:13 PM
 #6

I'm a miner have 2 6970's and a 5830. I cover my electricity my trash and sewage bill all from selling BTC around 240 to 260 a month and I have enough left over to pay some on my newegg bill for the cost of the second rig I built for the dedicated 6970 setup. With the current prices I'm definitely not butt hurt as long as it's over 8 dollars I can still cover all costs. I pay .11c for first 200kwh's and .14c kwh after that and I run my central air during the day.
I also have a job so this is all fun and games for me in not hurting in anyway.
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August 19, 2011, 10:20:02 PM
 #7

I'm fine as long as the price is more than $7 in the summer and more than $3 in the spring/fall.  In Winter, it's virtually free, since I'd be heating with baseboards anyway.

No butt hurt here.  Of course, I wouldn't mind a higher price either...  Smiley
xali
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August 19, 2011, 10:35:24 PM
 #8

I'm just saying though, both of you guys are directly responsible for the price not already being high. The more you sell as opposed to hold/spend the coins the more resistance there is to the price. So even if the price does go below 7 or anything, you still can't ever complain.

except dubs'420' though, i hope he's spending it on something real special Grin

Smiley ;/)
joulesbeef
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August 19, 2011, 10:52:07 PM
 #9

cant complain that mybitcoin lost so many peoples money?

you cant lay the price at the feet of the miner.. hes a part but not a huge part.



But i do agree that people need to stop mining, it will make you go blind.

mooo for rent
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August 19, 2011, 10:57:17 PM
 #10

I'm just saying though, both of you guys are directly responsible for the price not already being high. The more you sell as opposed to hold/spend the coins the more resistance there is to the price. So even if the price does go below 7 or anything, you still can't ever complain.

except dubs'420' though, i hope he's spending it on something real special Grin
And your point?  If I don't sell, I have less USD than if I do sell.  I don't care if the price goes higher if I'm not selling...
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August 19, 2011, 11:00:33 PM
 #11

I'm just saying though, both of you guys are directly responsible for the price not already being high. The more you sell as opposed to hold/spend the coins the more resistance there is to the price. So even if the price does go below 7 or anything, you still can't ever complain.

except dubs'420' though, i hope he's spending it on something real special Grin
And your point?  If I don't sell, I have less USD than if I do sell.  I don't care if the price goes higher if I'm not selling...
Dubs420
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August 19, 2011, 11:20:28 PM
 #12

I'm just saying though, both of you guys are directly responsible for the price not already being high. The more you sell as opposed to hold/spend the coins the more resistance there is to the price. So even if the price does go below 7 or anything, you still can't ever complain.

except dubs'420' though, i hope he's spending it on something real special Grin

Yeah nutes for my grow room HAHA
In all seriousness though I try and hold onto my BTC as long as possible. I'm currently holding 14+ coins and don't plan on selling till next month as I've covered my costs this month without needing to sell any BTC. It's not like I sell every day .8 btc like I see all day on MTgox live.
xali
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August 19, 2011, 11:32:28 PM
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No seriously though, if your gonna do something illegal you might as well use bitcoins to do it. will certainly help the bitcoin economy!!

Smiley ;/)
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August 21, 2011, 03:44:43 AM
 #14

Y'all realize the same number of coins that gets mined whether it's 1,000,000,000,000,000,000,000,000 petahash or just one guy on a Sempron, right?  Just checking.
newminerr
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August 21, 2011, 03:47:25 AM
 #15

I'm just saying though, both of you guys are directly responsible for the price not already being high. The more you sell as opposed to hold/spend the coins the more resistance there is to the price. So even if the price does go below 7 or anything, you still can't ever complain.

except dubs'420' though, i hope he's spending it on something real special Grin
And your point?  If I don't sell, I have less USD than if I do sell.  I don't care if the price goes higher if I'm not selling...
If you keep selling it will be lower, if you camp on it, and sell sometimes = more money for all
grod
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August 21, 2011, 04:11:21 AM
 #16


If you keep selling it will be lower, if you camp on it, and sell sometimes = more money for all

Same amount of $ are deposited into the pyramid whether or not people sell a portion or all of their coins.  What varies is the % of that each strategy gets, and when.

I'm glad some people choose the strategy to hoard their coins selling few to none.  It means I get a bigger piece of the pie when selling into a downtrend.  They can keep the bag, I'll take the $.  If I were to simply take the $ I've extracted from MtGox and buy coins with it I'd wind up with at least twice as many as I've sold.

And you speak as if a lower $ price is a BAD thing.  I have cheap power.  I'd still be making the same amount with bitcoin at $1.15 and a difficulty 1/10th of current.  In fact, I'd even keep a larger number of bitcoins around as a gamble.  For me, a much lower price would be a huge win.

TL;DR - I don't see the butthurt anywhere.  I've already paid for my hardware, power till the end of the year, and most likely at least one 7 series card.  Anything from now until then is just frosting on gravy.

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August 21, 2011, 12:39:49 PM
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If you keep selling it will be lower, if you camp on it, and sell sometimes = more money for all

I'm glad some people choose the strategy to hoard their coins selling few to none.  It means I get a bigger piece of the pie when selling into a downtrend.  They can keep the bag, I'll take the $.  If I were to simply take the $ I've extracted from MtGox and buy coins with it I'd wind up with at least twice as many as I've sold.

I sold bitcoins on MtGox in the $20s and high teens.  At the time this was considered 'crazy' by some on this forum as bitcoins were only going to go up due to increasing difficulty. 

If you need to sell it's worth averaging your sales out over a long period of time by periodical sales.  Not doing so is by default betting that you can beat the market and sell at a higher price in the future.  Maybe so, maybe not.  Most people fail at this.  The few who succeed post on these forums about their investment achievements, the rest remain silent.

One thing I do agree with most forum posters about is that bitcoins have found a true resistance level around $8 to $11.  It's unlikely they will fall much lower as many miners' costs would be higher than the bitcoins they produce.  I know I'll get a deluge of responses from people paying 8c/kWh, but those people need to look beyond the shores of North America.  Not everyone pays such low prices.  If mining were profitable at $5 or lower with current difficulty (as some claim) then we'd still be seeing a large increase in hash rate every week as it's a no brainer to add as much mining capacity as possible with BTCs at $11.

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tacotime
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August 21, 2011, 03:58:07 PM
 #18

I sold bitcoins on MtGox in the $20s and high teens.  At the time this was considered 'crazy' by some on this forum as bitcoins were only going to go up due to increasing difficulty. 

If you need to sell it's worth averaging your sales out over a long period of time by periodical sales.  Not doing so is by default betting that you can beat the market and sell at a higher price in the future.  Maybe so, maybe not.  Most people fail at this.  The few who succeed post on these forums about their investment achievements, the rest remain silent.

One thing I do agree with most forum posters about is that bitcoins have found a true resistance level around $8 to $11.  It's unlikely they will fall much lower as many miners' costs would be higher than the bitcoins they produce.  I know I'll get a deluge of responses from people paying 8c/kWh, but those people need to look beyond the shores of North America.  Not everyone pays such low prices.  If mining were profitable at $5 or lower with current difficulty (as some claim) then we'd still be seeing a large increase in hash rate every week as it's a no brainer to add as much mining capacity as possible with BTCs at $11.


If is profitable around $5/btc if you are paying 11c KWh, but the profit levels are only about 5-15%...  Even with profits going to 30% at $5 or $6/BTC a couple weeks ago many miners were dropping out.  I think the fact of the matter is that smaller scale miners are more likely to drop out with price decreases and larger scale miners are hesitant of scaling up further their operations on something of questionable stability, leading to the drops we've seen recently in mining.

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