more money is wasted mining coal
more money is wasted mining gas
more money is wasted mining oil
lets take coal for instance.
the coal industry mines 2billion tonnes a year at between $40-$60 dollars a tonne.
thats a $80-$120 billion industry.. PER YEAR and once the coal has been burned thats the end of that coal, its gone.
the costs of mining bitcoin is not even 2% of the coal industry and once mined, bitcoins dont just burn into nothing. they circulate and can be swapped and traded as much as they like forever.
Topic: Isn't Mining Economically Retarded? - page 4. (Read 5100 times)
Is it economically "retarded"? No, there is a chance you can earn more money via mining.
As mentioned above, buying a miner is essentially betting that the difficulty will not rise faster then a certain rate (as well as that the price of bitcoin will generally rise - to offset the cost of running the miner)
As mentioned above, buying a miner is essentially betting that the difficulty will not rise faster then a certain rate (as well as that the price of bitcoin will generally rise - to offset the cost of running the miner)
legendary
Activity: 1302
Merit: 1008
Core dev leaves me neg feedback #abuse #political
Mining is only for those with huge warehouses or extremely efficient miners with free electricity. Normal people don't have miners going anymore and if they do it is just a hobby so calm down.
I heat my home electrically so the energy cost is nothing during heating season. My old BFL miner paid for itself well over a year ago so as long as it keeps running I'll use it until next spring, shut it down for the summer, and start it up again in the autumn.
I think you were among the lucky ones who got fast enough delivery of your mining unit....many people lost money.
Mining is only for those with huge warehouses or extremely efficient miners with free electricity. Normal people don't have miners going anymore and if they do it is just a hobby so calm down.
I heat my home electrically so the energy cost is nothing during heating season. My old BFL miner paid for itself well over a year ago so as long as it keeps running I'll use it until next spring, shut it down for the summer, and start it up again in the autumn.
legendary
Activity: 1302
Merit: 1008
Core dev leaves me neg feedback #abuse #political
mining for retail consumers is economically retarded, yes.
Competition forces mining difficulty to the point where the profit margins are very thin and mining becomes economically infeasible except for those with the lowest costs, such as big players and those who have direct access to core hardware components.
Competition forces mining difficulty to the point where the profit margins are very thin and mining becomes economically infeasible except for those with the lowest costs, such as big players and those who have direct access to core hardware components.
You're missing that mining hardware could last for years. Get a S3+ and use it for 2-3 years. You'll be more than profitable. Yes with difficulty increases every subsequent few months will be worth less than the prior, but it will still make money. If you break even after 8 months on hardware costs, and still maintain even the slightest revenue over power costs, then you're still in the green.
Then once it gets to the point where you're not maintaining profit to electric costs, sell it on eBay to somebody that has no clue and is just looking for mining hardware, and then buy a newer unit with that money you made from the sale.
Then once it gets to the point where you're not maintaining profit to electric costs, sell it on eBay to somebody that has no clue and is just looking for mining hardware, and then buy a newer unit with that money you made from the sale.
Mining is only for those with huge warehouses or extremely efficient miners with free electricity. Normal people don't have miners going anymore and if they do it is just a hobby so calm down.
Mining, its just another way of gambling ... trade or mine, pick ur poison.
In mining ur betting against diff.
In trading ur betting against price.
If you buy hashrate w/ fiat, ur betting against both price & diff.
But yes, in to many cases people dont know how to do basic math when comparing prices and possibility of ROI
In mining ur betting against diff.
In trading ur betting against price.
If you buy hashrate w/ fiat, ur betting against both price & diff.
But yes, in to many cases people dont know how to do basic math when comparing prices and possibility of ROI
1. They make more money selling than mining, although they also mine.
2. They are passing the risk, the miner might not be profitable, plus they charge a fee for hosting the miner.
3. I agree.
2. They are passing the risk, the miner might not be profitable, plus they charge a fee for hosting the miner.
3. I agree.
1. If a miner was more profitable than the price payed, wouldn't the mining companies use them instead of selling them?
2. If a cloud miner was more profitable than the price payed, wouldn't the mining companies use them instead of renting them?
3. Isn't it less risky to buy the coins upfront and not compete with the rising hashrate and diminishing returns?
In my opinion, there is an influx of math-deficient kids and young adults spending money to buy miners in hopes of getting rich. This causes an influx of miners and less buying pressure on the actual market. In time, this influx should slow down as the general group will realize the futility of buying miners, and thus the price will begin to rise again.
Am I missing something as to the advantage of mining?
2. If a cloud miner was more profitable than the price payed, wouldn't the mining companies use them instead of renting them?
3. Isn't it less risky to buy the coins upfront and not compete with the rising hashrate and diminishing returns?
In my opinion, there is an influx of math-deficient kids and young adults spending money to buy miners in hopes of getting rich. This causes an influx of miners and less buying pressure on the actual market. In time, this influx should slow down as the general group will realize the futility of buying miners, and thus the price will begin to rise again.
Am I missing something as to the advantage of mining?
Jump to: