In fact, you can't drill and store oil since storing will also cost you some buck which will only add up to overall costs.
Yes, you can store a lot of oil, check out the oil reserves of some countries and the cost for it.
Apart from that, you don't pay 7000$ to mine a 6000$ coin as you had already paid 7000$ when the price was high and now you have to mine or otherwise your equipment will be useless in a couple of years.
Sorry but you are bent on not understanding how this works.
And most important here we're talking about FIXED costs of mining, not taking past and future situation.
Are you going to open a restaurant and serve people a 1$ ham at a loss because in twenty years a ham will cost 20$?
Don't think so.
To run a mining farm you have x costs per day. If you earn (x-2) in
BTC it's not profitable.
So better shut it down and buy x in
BTC.
If mining becomes again profitable you power it up again.
You can mine for 20 minutes a day and you can mine 24/7 (when its profitable)
It makes no f sense to mine at a loss. No sense!!!!!!
Shutting down your mining rig will invariably mean losing both on possible future profits and on your investment in this mining equipment.
You shut down an equipment that costs 7000$ to create 6000$ worth of value and you use that money to buy directly
BTC. This is not about how profitable mining will be if the prices go up.
This is how mining at a loss is compared to buying bitcoin directly:
For example.
Situation A
You spend 7 000$ to mine a 6 000$
BTC.
If the price per coins goes to 10 000$ you are in a profit of 3000$.
Situation B
You're mining at a loss and instead of spending 7 000$ on electricity you buy 1.2
BTC at a price of 6000.
If the price goes as in situation A to 10 000 your profit is.......5000!!!!!!!!!
Please don't argue with math!!!!
![Grin](https://bitcointalk.org/Smileys/default/grin.gif)
Do you have a mining rig?
I've mined till 2014, then the kid came and no way I'm going to have an S9 in the house with a little kid.
But you can go and check the mining speculation section and how people with solar panels are discussing if it isn't better to mine only during the day as the cost with the batteries that would allow 24/7 mining is bringing the biz in red
Exactly the situation we speak of, mine with cheap power, turn it off when it's not profitable.
This is not about theorizing in this way. People are mining coins at a loss in the hope of future growth, all costs considered. In a nutshell, they have no other choice as stopping mining would mean losing their investment in the mining rigs. In a sense, they are like people constantly adding up to a losing position.
Simple solution. Sell the mining rig.