Can someone explain why a miner would sell these bitcoin contracts rather than just keep all the mined coin? It seems if I spend tons of cash setting up mining rigs, that I would keep all the mined bit coin? Or are they selling the capacity for more than it costs them?
Ah, the delicate balanced between: excess capacity versus costs + having our BTC upfront and available allows to buy hw now and pay for it later + continual growing diff is a bitch + if price goes down we're doomed
Just like banks do with your savings accounts: you get interest while the money is there, but they use the actual currency for investments and business.
Mind the difference, however: PBmining is not returning your BTC in the end, this is not a deposit.
But then again, the interest rates are insane
when compared to fiat and banks (naturally, because taking higher risks implies getting higher payouts).
Do the following exercise: find a regular fiat currency financial product that allows for 8/12 months break-even + 4 more years interest
without further involvement.
If you do, hush and don't tell, LOL
if BTC prices were stable like fiat, this would be afukinmazing and probably almost impossible to have available
Uncertainty rules!
