[2014-02-08] Mining Bitcoin: Survival of the Fastest

[Ripdon007]

Loved reading this piece.. it hits the nail on the head.. spot on all the way https://coinreport.net/mining-bitcoin-survival-fastest/

[seriouscoin]

Loved reading this piece.. it hits the nail on the head.. spot on all the way https://coinreport.net/mining-bitcoin-survival-fastest/

Actually the bitcoin economy relies heavily on mining now. After years of experiment, we cant deny the fact that mining does affect the price supporting level.

As such mining difficulty increasing rate, $700 is cheap. It would require alot of capital to be able to mine any good amount of bitcoin hence buying at this price makes alot more sense.

B4 $500 is consider a good selling price for miner. Now i think it has to be $700+. Tons of cost into their mining gear, they're not gonna sell it for lower price. Remember its not just about "being profitable" but also ROI.

Ppl tend to only looking USD earned - operating cost..... but overlook the capital invested. Its a race against time. The sooner to sell your mined coins at low price, the worsen your mining ROI will be.

[kjlimo]

I may need to look into see if I'm due any of these lawsuits... heh.

[Kosta#]

Actually the bitcoin economy relies heavily on mining now. After years of experiment, we cant deny the fact that mining does affect the price supporting level.

Of course we can deny it. Mining provides only 3.8% of the tranasaction volume. Therefore, price is almost exclusively affected by supply and demand, not by mining expenses or whatever.

[pjviitas]

Actually the bitcoin economy relies heavily on mining now. After years of experiment, we cant deny the fact that mining does affect the price supporting level.

Of course we can deny it. Mining provides only 3.8% of the tranasaction volume. Therefore, price is almost exclusively affected by supply and demand, not by mining expenses or whatever.

Without miners there would be no transactions...period.

So ya...I would say mining is kind of important.

Without miners, Bitcoin would not exist.

[seriouscoin]

Actually the bitcoin economy relies heavily on mining now. After years of experiment, we cant deny the fact that mining does affect the price supporting level.

Of course we can deny it. Mining provides only 3.8% of the tranasaction volume. Therefore, price is almost exclusively affected by supply and demand, not by mining expenses or whatever.

Hey stupid, its not just about mining reward.

[Ripdon007]

Actually the bitcoin economy relies heavily on mining now. After years of experiment, we cant deny the fact that mining does affect the price supporting level.

Of course we can deny it. Mining provides only 3.8% of the tranasaction volume. Therefore, price is almost exclusively affected by supply and demand, not by mining expenses or whatever.

Without miners there would be no transactions...period.

So ya...I would say mining is kind of important.

Without miners, Bitcoin would not exist.

You're definitely right on the money with that point... miners are extremely crucial for the bitcoin network to function.. so imagine if the difficulty increases to a point where miners aren't making a ROI cuz the price of bitcoin isn't high enough .. that could discourage many miners.. Price needs to follow the difficulty sooner or later. I believe the upcoming knc neptune won't have a ROI unless the price of bitcoin is about 1200$ (last time i checked the genesis block) mining is a tough business so you gotta be strategic

[Ripdon007]

Loved reading this piece.. it hits the nail on the head.. spot on all the way https://coinreport.net/mining-bitcoin-survival-fastest/

Actually the bitcoin economy relies heavily on mining now. After years of experiment, we cant deny the fact that mining does affect the price supporting level.

As such mining difficulty increasing rate, $700 is cheap. It would require alot of capital to be able to mine any good amount of bitcoin hence buying at this price makes alot more sense.

B4 $500 is consider a good selling price for miner. Now i think it has to be $700+. Tons of cost into their mining gear, they're not gonna sell it for lower price. Remember its not just about "being profitable" but also ROI.

Ppl tend to only looking USD earned - operating cost..... but overlook the capital invested. Its a race against time. The sooner to sell your mined coins at low price, the worsen your mining ROI will be.

You're right for sure.. when i was purchasing bitcoins locally.. i bought some around 300$ when people thought bitcoin couldn't go any higher.. and i even told some of those sellers that 2 weeks from then the price would be past 550+ and that was at the beginning of october i believe... prices went as high as 1200+ (mtgox) .. so anyone that tells me that 700$ is a bad time to be buying bitcoins... i say to you that i'm a buyer!

[pjviitas]

Actually the bitcoin economy relies heavily on mining now. After years of experiment, we cant deny the fact that mining does affect the price supporting level.

Of course we can deny it. Mining provides only 3.8% of the tranasaction volume. Therefore, price is almost exclusively affected by supply and demand, not by mining expenses or whatever.

Without miners there would be no transactions...period.

So ya...I would say mining is kind of important.

Without miners, Bitcoin would not exist.

You're definitely right on the money with that point... miners are extremely crucial for the bitcoin network to function.. so imagine if the difficulty increases to a point where miners aren't making a ROI cuz the price of bitcoin isn't high enough .. that could discourage many miners.. Price needs to follow the difficulty sooner or later. I believe the upcoming knc neptune won't have a ROI unless the price of bitcoin is about 1200$ (last time i checked the genesis block) mining is a tough business so you gotta be strategic

I don't think the limitation on bitcoin mining is hardware...I think the limitation is your power and hvac system.  I predict that by the end of May we will have a torrent of people complaining that they are starting to pop breakers in their homes and they will need to start moving their miners to other rooms to get onto a different breaker.

[sharedminers]

Mining is what makes bitcoins, if mining becomes unprofitable, the difficulty can decrease due to less people interested in mining. It is far from being the case when you look at all the crazy people pre-ordering mining very expensive hardware that they will receive months later.
the only way for miner to make a profit is to Hodl and wait until price goes up to cash out.
But i agree with the fact that the price of bitcoin has to match the mining difficulty increase in some way...

[Ripdon007]

Mining is what makes bitcoins, if mining becomes unprofitable, the difficulty can decrease due to less people interested in mining. It is far from being the case when you look at all the crazy people pre-ordering mining very expensive hardware that they will receive months later.
the only way for miner to make a profit is to Hodl and wait until price goes up to cash out.
But i agree with the fact that the price of bitcoin has to match the mining difficulty increase in some way...

There's a poll open over at kncminer's forum on whether the people that placed preorders for their Neptune hardware will cancel the orders or go ahead with it. The difficulty of the over all network is definitely not stopping anytime soon and i find it hard to see how it will ever slow down unless of course the central banks and goverments around the world collective ban bitcoin (which is even more unlikely altho a case could be made for russia)

It feels like 2014 is gonna be the year where goverments around the world tried to take a bite of the bitcoin pie..

[bryant.coleman]

The only people who are gaining from BTC mining right now are companies like the BFL. They illegally mine for coins using mining hardware, which should have been shipped to their customers many months ago.

[guybrushthreepwood]

The only people who are gaining from BTC mining right now are companies like the BFL. They illegally mine for coins using mining hardware, which should have been shipped to their customers many months ago.

What would be illegal about it, and do they actually do that?

[bryant.coleman]

What would be illegal about it, and do they actually do that?

It is illegal. Because, those mining rigs don't belong to them. They should just manufacture the devices and then ship them to their customers.

Yes. They do that regularly. There were some threads here a few months ago.

[guybrushthreepwood]

What would be illegal about it, and do they actually do that?

It is illegal. Because, those mining rigs don't belong to them. They should just manufacture the devices and then ship them to their customers.

Yes. They do that regularly. There were some threads here a few months ago.

Links? You sure it just wasn't FUD? How could they prove they were being used?

[Ripdon007]

What would be illegal about it, and do they actually do that?

It is illegal. Because, those mining rigs don't belong to them. They should just manufacture the devices and then ship them to their customers.

Yes. They do that regularly. There were some threads here a few months ago.

Links? You sure it just wasn't FUD? How could they prove they were being used?

I'm not too sure if BFL was using their customers miners to mine for themselves.. that's quite a statement.. and if true.. BFL deserves the law suits that they're getting.

[bryant.coleman]

Links? You sure it just wasn't FUD? How could they prove they were being used?

Check this:

http://www.coindesk.com/avalon-accused-of-mining-with-customer-asics/

It is just one among the hundreds of publicized incidents....

[Ripdon007]

Links? You sure it just wasn't FUD? How could they prove they were being used?

Check this:

http://www.coindesk.com/avalon-accused-of-mining-with-customer-asics/

It is just one among the hundreds of publicized incidents....

That's Avalon.. they were a total scam.. i feel sorry for anyone that fell for them. (not to say that bfl is far off with their reputation in the gutters... )

[bryant.coleman]

That's Avalon.. they were a total scam.. i feel sorry for anyone that fell for them. (not to say that bfl is far off with their reputation in the gutters... )

I've heard similar stories about BFL also.