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Author Topic: Mining when it costs more in power than payout.  (Read 2611 times)
SlipperySlope
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April 07, 2014, 04:01:27 AM
 #21

I was hoping we could use another word for the collective noun, like a "crypto" of bitcoins or a "hash" of bitcoins. You know if you suspect another bubble in the future you should keep mining now.

Cultures have reified, i.e. named certain sized groups when that made sense to make conversation more concise. For example when I say a herd of cattle or a flock of birds, or a school of fish, you have a commonsense shared notion of how many individuals are in the group. Likewise, when I say a stack of dollars or a ton of gold, these group noun phrases suggest a certain quantity.

Given that the value of bitcoin is not yet stable, I think that it is premature to look for the sort of collective crypto noun phrases you mention. However, I would like to have a phrase that encompasses what is vulgarly called Fuck You Money - which is the quantity of money that allows one the freedom to live without working for a boss.

"shitload of coin"
"lot of coin"
"enough coin"
"frozen cold wallet of coin"
"Satoshi's lost stash of coin"
... etc.

If and when my power costs exceed my GPU rig leasing profits, then I will power off and buy coins with the the new found fiat that I would have otherwise spent on power.
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w00tcoin
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April 07, 2014, 06:12:00 AM
 #22

Mining will never die.

There are too many variables.

There are more sha coins to mine other than BTC.

There will be more sha coins - mining will never die.

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April 07, 2014, 09:55:36 AM
 #23

I wonder how many miners here are mining despite knowing it's not profitable while telling others not to Wink

Well where I'm from electricity's pretty cheap, so it's still doable. I'm not too concerned with profitability frankly, I just want to be able to still mine btc while I still can. Used to be getting few btcs a day, then down to one, then 75%, then 2%, now only 0.01 btc a day, but will still hash on!
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April 07, 2014, 04:14:56 PM
 #24

I will continue to mine when this happeneds to my miners, why?

Well if/when BTC jumps in price again.. all that "unprofitable" mining becomes widly profitable.

This is why I never understand anyone who turns off their rigs. They may eat the loss on electricity for a while, until the price rises again and all that coin you mined while "unprofitable" suddenly makes it very profitable.

Perhaps an example can illustrate the widely held truth about unprofitable mining. Suppose bitcoin cost $500 each and your power bill is $2000 per month. Suppose that mining at a certain difficultly yields 1 bitcoin earned per month.

Then yes the 1 bitcoin earned per month will be very valuable at the peak of the next bubble - say $6000 per coin. By running the mining farm in this manner, you pay $1000 in electric cost, and earn 1 bitcoin currently worth $500. If you cash in at the peak of the bubble you net $6000 revenue minus cost of $1000 equals net profit of $5000 .

But suppose you instead shut down the unprofitable rig and spend the $1000 of newly available funds on purchasing two bitcoin for $1000. If you cash these in at the peak of the bubble you net $12000 revenue minus the cost of coin of $1000 equals a net profit of $11000.

This is why I always understand anyone who turns off their rigs.

The best case for running an unprofitable mining rig is if circumstances prevent you from otherwise buying bitcoin on an exchange. This is exactly the situation in China where the government, seeking to control the value of Yuan, limits the transfer of funds outside of China by its citizens to only $50000 per year. This law may be circumvented by someone purchasing say $200000 worth of mining gear - which may not as easily be monitored by authorities, and running it even though unprofitable, in order to create bitcoin valued in excess of the legal limit that can be sent out of China via the Bitcoin network.

Just adding
Even with small income, some people buy another machines for more pasive income, but not thinking for ROI (Say they got 250 USD with 200 USD electricity). Furthermore some people preordering machines with the same price/performance but halved the electricity, still it not even close to ROI except pasive income for a couple months. They dont want to buy BTC because its gambling, but I think its the same with mining.

I think not mining doesnt mean they not supporting bitcoin, as long as they buy bitcoin. Balancing buy and sell with difficulty and hash rate would be perfect. Some people already refund they preorder after seeing char past 1-2 months, and 2-3 more difficulty update some people would start do more refund...

Sorry too much some people >.<

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