Why continue mining in loss

[batsonxl]

For someone loss but if your electricity is cheap there is no loss.

[1715226600]

1715226600

[1715226600]

1715226600

[FP91G]

Why do soms people still mine coins at loss ? Is there any opportunities behind this?

Most of the miners sold their coins and made a good profit in 2021. Therefore, they have enough funds to pay their electricity bills. Miners with expensive electricity will soon start to turn off, but most miners work where electricity is not very expensive.

I doubt this friend, why mining difficulty always go way down once mining profit isn't making sense anymore? If most miners are mining in a country with low electricity bill then difficulty won't be so down

If you look at a similar situation in 2018, then the hash rate did not start to decrease immediately. After 3 months, the hashrate began to decrease. And there has not yet come such a situation that the profit was less than the expenses of the miners. Therefore, it is too early to talk about mining at a loss.

[philipma1957]

I will show you 2 reasons at two pools as to  why you can mine at  loss for years.


https://pool.laurentiapool.org/#/miners


Look at 3rd miner

146...gx3

it mines at a loss because this pool very rarely hits blocks
it may not hit a block for a year.


http://mmpool.org/statistics

look at miner 8 c932f3ed   0.02207597   5,875,431,605   6,299,196

it may not hit a block for a year.


but the upside is they would earn close to a btc if they do hit a block



Think of it this way I give you 1500 to 1 odds on a 3 digit number 000 to 999 you get to play  1 number for a dollar each day.

A) is that gambling?
B) is that playing at a loss
C) or is it a deeper understanding of game theory in that you are doing a lost cost high risk  high payout investment?

And the answer is c.  If you disagree you simply do not understand the math and are incorrect.

So if you can make your  mining at a daily loss into the c case example or the 2 mmpool.org and Laurentiapool.org examples you are not mining at a loss it merely looks that way.

A third example buy this laptop

https://www.bestbuy.com/site/hp-omen-16-1-qhd-gaming-laptop-intel-core-i7-16gb-memory-nvidia-geforce-rtx-3070-1tb-ssd-ceramic-white/6479084.p?skuId=6479084


mine it for 45 days and return it.

It will earn about 0.002 btc
It will cost about 110 kwatts of power that is  about $15.40 usd

point the 0.002 btc to ck solo pool rent at nice hash.

odds of hitting a block are about 3125 to 1.  3125 x 15.40 = that is about 48125 payout maybe with fees the odds are higher and a fair payout is 55000

but what is the payout if you hit the block 6.15 x 37000 = 227550

so you are risking 15.40 usd to have a 3125-3300 shot at 227,550 when you should be paid 48125-55000

a perfect example of question c.

Now anyone that thinks this is gambling  simply does not understand :

C) or is it a deeper understanding of game theory in that you are doing a lost cost high risk  high payout investment?