Of course those who dug out large amount of gold would never tell others, but they can not hide it: The boom of the west coast was largely due to those gold
Equipment maker on the other hand make some short term profit, when gold rush is over, their business is also over. When you have a little bit gold, you would eventually exhaust them, but if you have large amount of gold, you could start a bank, and your gold will just get more and more
Take mining for example, I guess most of the equipment makers have went down following the skyrocket of difficulty, a few left either get large amount of credit from banks (like kncminer), or take extremely cheap design to cut cost (bitmain). On the other hand, those who had large amount of coins opened exchanges and are still happily profit from the trading business
And don't worry, in order to keep the gold rush everlasting, the transaction fee will be raised so that block reward will be bypassed by fee income in the near future
Topic: History Repeats Itself - Mining Bitcoin exactly like mining Gold (Read 705 times)
September 05, 2015, 10:47:27 AM
Gold mining was actually quite a bit worse, but that was due to local inflation. The huge markups on things wasn't just because of vendor greed. Gold became by no means a scarce commodity and so was heavily devalued locally. If you were paying in gold dust, it wasn't uncommon for things to cost a hundred times more than they would have back East. When everyone's rich, nobody's rich - until you come back East where your bags of gold are now exchangeable for legal tender in substantial amounts. The devaluing of gold from oversupply from California in '49 prompted the government to print the first paper currency with a guaranteed but unbacked value.
But yeah the mining machine vendors are definitely profiting from us. I'm sure their beancounter department is pretty good at optimizing price/sales curves using estimations of difficulty and coin value (which they can also manipulate to a certain extent) - we saw this during the S5 price hike, the publicly-declared motivation for which was, in short, "because we can".
But yeah the mining machine vendors are definitely profiting from us. I'm sure their beancounter department is pretty good at optimizing price/sales curves using estimations of difficulty and coin value (which they can also manipulate to a certain extent) - we saw this during the S5 price hike, the publicly-declared motivation for which was, in short, "because we can".
September 05, 2015, 04:42:33 AM
Most of you might not recall but did you know that it wasn't the miners who made most of the money during the California Gold Rush?
Who was it? It was the merchants who sold the supplies to the miners that reaped most of the benefits. One of the richest men in California at the time was selling supplies for miners at huge mark ups.
Some Gold miners made a decent profit but it was only because they showed up early. But the miners who arrived much later actually made very little money and some even made a huge loss mining the gold.
It looks like Bitcoin mining is becoming exactly the same. The only individuals making money right now are the ASIC manufactures and the manufactures of PSUs. Like Bitmain and Corsair/EVGA.
Some Bitcoin miners made very good profit if they started mining back in 2013, for most in 2014-2015 resulted in very little profits or loss.
Who was it? It was the merchants who sold the supplies to the miners that reaped most of the benefits. One of the richest men in California at the time was selling supplies for miners at huge mark ups.
Some Gold miners made a decent profit but it was only because they showed up early. But the miners who arrived much later actually made very little money and some even made a huge loss mining the gold.
It looks like Bitcoin mining is becoming exactly the same. The only individuals making money right now are the ASIC manufactures and the manufactures of PSUs. Like Bitmain and Corsair/EVGA.
Some Bitcoin miners made very good profit if they started mining back in 2013, for most in 2014-2015 resulted in very little profits or loss.
Don't know if it's fair to put the PSU makers in this. They price them for computers not miners, we are not a big enough segment to have PSU's based on miners use. The exception is a few companies take server PSU's and sell them specifically to miners, yes those miners do effect price.
GPU day's miners did kinda effect GPU pricing on radeons which was pretty amazing. They even made it where many models were out of stock almost always. And pricing went up directly related to it. Eventually after ASICs it's funny the GPU's did go back down.
September 05, 2015, 04:18:52 AM
Most of you might not recall but did you know that it wasn't the miners who made most of the money during the California Gold Rush?
Who was it? It was the merchants who sold the supplies to the miners that reaped most of the benefits. One of the richest men in California at the time was selling supplies for miners at huge mark ups.
Some Gold miners made a decent profit but it was only because they showed up early. But the miners who arrived much later actually made very little money and some even made a huge loss mining the gold.
It looks like Bitcoin mining is becoming exactly the same. The only individuals making money right now are the ASIC manufactures and the manufactures of PSUs. Like Bitmain and Corsair/EVGA.
Some Bitcoin miners made very good profit if they started mining back in 2013, for most in 2014-2015 resulted in very little profits or loss.
Who was it? It was the merchants who sold the supplies to the miners that reaped most of the benefits. One of the richest men in California at the time was selling supplies for miners at huge mark ups.
Some Gold miners made a decent profit but it was only because they showed up early. But the miners who arrived much later actually made very little money and some even made a huge loss mining the gold.
It looks like Bitcoin mining is becoming exactly the same. The only individuals making money right now are the ASIC manufactures and the manufactures of PSUs. Like Bitmain and Corsair/EVGA.
Some Bitcoin miners made very good profit if they started mining back in 2013, for most in 2014-2015 resulted in very little profits or loss.
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