Overall, the network is underwater on electric costs by about 30% of daily revenue. Over a month, that equals about $200k in loss overall. That is most certainly not going to continue.
You know this how?
~8TH @ 2MH/W = 4000kW load or 96,000 kWh daily.
7200 coins @ $2.25 ea = $16,200 daily. If that is 30% short then you are saying daily electrical costs are actually $23,100.
Assuming every single miner paid for power directly that is $23,100 / 96,000 = $0.24 per kWh.
For your "analysis" to be accurate the average global electrical cost would need to be $0.24 per kWh.
1) Average cost in US is $0.10 and US makes up at least a significant portion of the network.
2) The most expensive miners will be first to quit which will drive down average cost.
3) This ignores AC costs but it also ignores the "heat subsidy" in the winter.
So once again how do you "know" that the network is 30% underwater on electrical costs?You're brother is Ken, right? You are the other side of the family business - Mining. You're upset about bitcoin devaluation, upset about your Mining operation making virtually nothing. You and others are upset about the rapid decline of interest in bitcoin, and I'd also be upset that cXc launched without as much as a "congratulations" in the forum.
Further, I think you're upset/angry at me specifically for standing up and answering to your friend Jay's slander and libel, and I think you feel utterly retarded for having become involved with (you recommended him to your brother to do business with, remember?) a pathological liar and sociopath.
I think I understand. I'm your nemesis now. It's obvious that you just want to disagree with me. You're overshooting in attacking me though; it's very clear that you are emotionally charged by virtue of these poorly thought out and researched passive aggressive questions. However, your numbers are wrong, and your assumptions are the product of desperation. You really want to believe your own horse shit.
That said, here's my reply.
1) Average cost in the US is $0.15, with most Urban areas having tiered rates much MUCH higher than that. Your reference of $0.10 average was from a mother goose article from 2008, the top result on google. By 2009, for example, average electric costs were already $0.12, and from 2009 onward the additional inflationary pressures on electric rates have been largely absorbed by heavy users. For a single GPU mining, the lower rate probably applies. For anyone running an actual rig or two, they can expect to double their electric bill by stepping up their usage tier.
2) True, and difficulty will drop. The price will drop even further when this happens. Race to the bottom.
3) Wouldn't that be a wash? This is fallacy. In real life though, most people don't keep their 4 rigs in the kitchen. Perhaps the most hardened miiners will strategically move rigs around their house to provide heat for their (very) annoyed families. Maybe.
-added-
4) MANY miners have sunk costs that are borrowed @ interest. Whether it be credit cards, personal loans or otherwise, quite a few fire sales fo inefficient rigs will need to be liquidated in a race to the bottom.
5) Most miners lie about their production vs. costs because none of you want to admit that you're in a geek cult.
6) 7200 coins / day will not get $2.25, but will get some average price lower than that. Expect the increasing pressure to liquidate toward the end of the month to cause the price to gradually decrease like chinese water torture on the charts.
I'm sorry that you're in a rough place, and that you have fallen down the rabbit hole, sir. I had mining rigs for 1 month and sold them at a minor loss, and it was the best decision I ever made. I understand where you're coming from, and I get that you want mining to be profitable again. I know you don't like the bears in this forum, but the reality is that the bears are the only logical people left. The rest of you are out of touch with the current reality.
Take care of yourself.
-Jonathan