Bitcoin Forum
June 15, 2024, 06:12:52 PM *
News: Latest Bitcoin Core release: 27.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: « 1 [2]  All
  Print  
Author Topic: Difficulty Lowering Question  (Read 1435 times)
hyphymikey
Hero Member
*****
Offline Offline

Activity: 784
Merit: 1000



View Profile
December 20, 2014, 11:25:10 PM
 #21



The main issue we face at this point is the lopsided integrations.

We need merchants to integrate on the POS side AND the payroll side.  Kiss

That is a very interesting way to look at it. And I totally agree.

But what does this have to do with mining and confirmations?
fryarminer
Hero Member
*****
Offline Offline

Activity: 686
Merit: 500


View Profile
December 21, 2014, 06:46:30 AM
 #22

Wouldn't the larger miners give up first if they are bleeding tons of money to electrical costs and not recouping them due to the low BTC price? I thought something just happened with a chinese farm offering thousands of Antminers for sale.

large miners mindset.

"i have $20million upfront beforehand.... and i want 28,000 coins, ill spend $10mill on rigs and $10mill on electric."
no matter what the price of bitcoin is. the cost of rigs/electric stays the same, the price of bitcoin is irrelevant because they never sell bitcoin

hobby miners
"i have $10k and i want $12k in 3 months"
they spend $10k on rigs. and then have to cash out the bitcoin to pay for electric bills each week/month, meaning they are not 100% hoarders and are going paste their 3 month deadlines due to changes in difficulty. thus they never reach ROI die to selling coins.

the smart miners are those that waste their fiat investments first off in electric and rigs. and then simply keep 100% of the bitcoin mined.

after all if your not keeping the bitcoin your mining.. then why the hell are you mining!..
You have this backwards. The "hobby" miners are less likely going to be monitoring electric costs and the price of bitcoin closely enough so that they know right away when costs of mining exceed the value of the bitcoin they are mining.

Large mining farms are going to be monitoring the price of bitcoin and the cost of mining (electricity) very closely. If their goal is to acquire a large amount of bitcoin then they will attempt to do so in the most efficient manner possible. This means they make an initial investment in miners in order to buy bitcoin at a discount (via their electric bill) in the future, however if they both want to acquire additional bitcoin and the cost to mine bitcoin exceeds the value of the bitcoin they are acquiring via mining they will simply buy additional bitcoin via an exchange at a similar rate they would be mining and turn off their miners. To continue to mine at a loss is not economically rational

I agree, it is kind of backwards. Hobbies take money, everyone knows that. If I have 5 rigs and a refrigerator and heating and lights to pay electricity for, I'm not going to care about my electricity bill being higher, I'm just going to pay it. However if I'm running a warehouse full of electricity leeches, then all I'm gonna think about is how to pay the bill.

That being said, Franky is absolutely correct. If you cannot pay the electricity bill without selling bitcoin to do so, you should not be mining, mining is not for you.
Gleb Gamow
In memoriam
VIP
Legendary
*
Offline Offline

Activity: 1428
Merit: 1145



View Profile
December 21, 2014, 07:17:52 AM
 #23

large miners wont just give up... it will be the small hobbyists that turn off first.

large miners want bitcoin and use FIAT to buy rigs and pay electric and then hoard coins. yet its the small hobbyists that care about the bitcoin price because they have to sell coins to recoup losses. to be honest i enjoy seeing these stupid hobbyists turn their rigs off.. after all they are not investing in bitcoin. they are selling coins to invest their freshly received fiat into electric companies.

mining is not suppose to be quick mining to fuel a FIAT lifestyle. it suppose to be a way for people that want bitcoin to accumulate bitcoin. and those that want to accumulate bitcoin do not care about the price, as they know and are planning on the long term. and not caring about the daily/weekly costs

Hobbyists should turn off their miners and pay hosting facilities to mine for them. Less electricity would be used, along with forcing the mega farms to shut down. Besides, one who pays for hosting makes a lot more bitcoins than if they were actually mining, ergo everybody wins.

On a side note, I can't wait to don my retard Vulcan outfit (not Vulcan retard outfit) to the next Star Trek convention.

Oscilson
Sr. Member
****
Offline Offline

Activity: 434
Merit: 250



View Profile
December 21, 2014, 11:17:58 AM
 #24

The hosting (cloud mining) is too expensive.
bornil267645
Sr. Member
****
Offline Offline

Activity: 406
Merit: 250


AltoCenter.com


View Profile WWW
December 21, 2014, 11:32:45 AM
 #25

Mining will be lot more difficult than before, but was suppose to happen wasn't it?

Pages: « 1 [2]  All
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!