Yes that's true but I invest in a few coins as well as btc especially TEK. I dont sell them to fiat ever and I don't need to sell the rig just thinking for future re scrypt jane vs scrypt.
I treat costs associated with mining differently with buying currency. mining has residual value in the hardware. production-wise, the 10mh i put to litecoin costs the same as the 10mh i put to cagecoin.
if you don't sell your investments, then the profitability hasn't dipped much relative to BTC. removing the comparison to fiat (because you don't sell your mined coins) all cryptos have a downward trend, so i certainly don't see a slight dip in profit equating to "going down the drain" as OP states.
i think the profitability problem is overstated, but even a small dip in profitability starts to show who spent money they could afford to lose, and who bought their equipment on credit.
I am waiting for the profitability to drop further: take out some of these weaker miners so i can start buying equipment for reasonable prices again.
