johnyj (OP)
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Beyond Imagination
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February 15, 2014, 03:11:00 AM |
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As we know, central banks often intervene foreign currency market to protect the exchange rate of their own currency. The miners in bitcoin economy are in fact the distributed central banks, they could also form such a consensus. In order to reduce the volatility of bitcoin, they can sell the coins when price is rising too fast, and buy the coins back when price is falling too fast
But when? Historically, if the price rise more than 4x in a month, it should be the time to sell, and if the price drop more than 50%, time to buy. In order to do so, miners must have both bitcoin reserve and fiat money reserve. Fiat money is easy to get, but bitcoin is not so, so it should be miners doing such work
Currently I'm buying coins using my fiat money reserve, only regret that I did not sell enough coins when price was high, so that I can build up more fiat money reserve to be used now. Is there any other miners doing the same?
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"I'm sure that in 20 years there will either be very large transaction volume or no volume." -- Satoshi
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Threader
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February 15, 2014, 03:16:11 AM |
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I only care about custom hardware for bitcoin mining. Wrong forum dude
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johnyj (OP)
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Activity: 1988
Merit: 1012
Beyond Imagination
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February 15, 2014, 03:41:43 AM |
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I only care about custom hardware for bitcoin mining. Wrong forum dude
I thought about this, but it is really difficult to get enough attention from miners if posted in economy board |
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Airwhale
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February 15, 2014, 04:48:34 AM |
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The volatility of bitcoin affects me as I figure out how many bitcoins I need to buy a specific piece of equipment. This affects ROI. Thus, if mining equipment is priced in fiat, I'm more likely to buy it when bitcoin is high.
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kalus
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let's make a deal.
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February 15, 2014, 07:09:35 AM |
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i like rainy days. the most unsustainable operations will fail, and hopefully i'll have cash to buy up some cheap hardware.
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DC2ngEGbd1ZUKyj8aSzrP1W5TXs5WmPuiR wow need noms
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bluemist
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February 15, 2014, 05:14:43 PM |
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I've kept all my mining profits as BTC so far, so the volatility doesn't really matter as I'm hodling for the long term  |
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libitum
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February 15, 2014, 06:13:13 PM |
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I dont sell coins. I dont buy coins. I protect myself from volatility by buying miners with BTC only when BTC price is high enough.
Electricity is always paid with fiat (my own), not by selling BTC.
Resell price of miners so far is extremely high (you can resell it for more than you paid for it, even after mining for few months with it), then bitcoin mining so far is good business. I dont even want to resell my miners. I just keep mining myself.
I care about BTC price in 2 years from now. I dont care about what is the price today. In 2 years I will sell my BTC for profit. Now it is only hard (mining) work.
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Reviews of Bitcoin Miners. $500 Rebate KNC Neptune Miner (http://www.libtium.com/?page_id=88/)
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Leoto
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February 15, 2014, 06:18:15 PM |
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I don't intend to ever exchange my accumulated BTC for fiat, so BTC/fiat exchange rate is materially irrelevant to me. I'm holding BTC until the time comes when everything I need/want can be bought directly with BTC.
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FrankieSaysRelax
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February 16, 2014, 07:47:17 PM |
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that seems awfully risky, don't you think?
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frankenmint
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HoneybadgerOfMoney.com Weed4bitcoin.com
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February 16, 2014, 08:11:29 PM |
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I would have thought that was a Yes/No question, not a poll survey. The truth is that I do like selling my coins in small amounts regardless of price because it means that others desire it to either hold for a later date or to participate in spending it. I do keep some on hold for that hopeful day that the price rockets and there are other times where I do need to make ends meet because IRL jobs that pay in fiat are far in between. I wanted to ask others to define what constitutes a professional miner? Does it mean that I only mine as a full time profession with some side jobs or that I have dedicated more than 30 hours per week on researching and maintaining hardware?
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btcshiner
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February 17, 2014, 01:01:17 AM |
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I tend to keep some fiat and bitcoin. I treat both equipment and bitcoin as a commodity. I was blessed to have bought miners in fiat that ROI in both BTC and Fiat. Some I sold in Fiat converted to BTC to get more hashing power. There was a time when it didn't make sense in either fiat or BTC to get new miners. Now there is more adoption so resale competition has increased. Voilitity is a traders game. As mining gets bigger there will probably be more companies offering futures and hedging products like in other commodities, farms, and precious metal mining.
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DanielVG
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I want free lunch, i'm gonna go with this guy.
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February 17, 2014, 02:04:32 AM |
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I care about BTC price in 2 years from now. I dont care about what is the price today. In 2 years I will sell my BTC for profit. Now it is only hard (mining) work.
exactly that! |
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johnyj (OP)
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February 17, 2014, 03:39:29 PM |
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that seems awfully risky, don't you think?
Historically, several central banks were also defeated by speculators due to lack of USD reserve, but most of the time they have control |
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johnyj (OP)
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Activity: 1988
Merit: 1012
Beyond Imagination
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February 17, 2014, 03:45:50 PM |
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I would have thought that was a Yes/No question, not a poll survey. The truth is that I do like selling my coins in small amounts regardless of price because it means that others desire it to either hold for a later date or to participate in spending it. I do keep some on hold for that hopeful day that the price rockets and there are other times where I do need to make ends meet because IRL jobs that pay in fiat are far in between. I wanted to ask others to define what constitutes a professional miner? Does it mean that I only mine as a full time profession with some side jobs or that I have dedicated more than 30 hours per week on researching and maintaining hardware?
By professional miner I mean you treat it not like a hobby, at least 1KW mining equipment and you actively watch the hash rate distribution to redirect your hash power to avoid centralization etc... or even better running P2POOL |
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Poll
