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Topic: price about to go UP - reason all the overpriced asics - page 2. (Read 6093 times)

hero member
Activity: 602
Merit: 500
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doubt it, what's the point of only partially repaying off your credit card at all. they'll just make minimum payments and wait it out. only mgio here sounds like he wants to sell at a neverending loss Cheesy

So you are betting on BTC increasing fast enough to outweigh the 20%+ interest being charged for not paying off the balance?

20% (kind of high- most credit cards should be less unless you have terrible history)  YEARLY interest...  100% yes
Some aren't borrowing money- and only 4% yearly interest if a equity line was used
anyways, bitcoin's value keeps rising at a pace that is much higher than credit cards charge. you are better off waiting and betting on the trend of 4 years then paying it all off at a loss regardless. it's really really common sense

edited - was typing off a tablet and those are a bitch to write off
sr. member
Activity: 476
Merit: 250
doubt it, what's the point of only partially repaying off your credit card at all. they'll just make minimum payments and wait it out. only mgio here sounds like he wants to sell at a neverending loss Cheesy

So you are betting on BTC increasing fast enough to outweigh the 20%+ interest being charged for not paying off the balance?
hero member
Activity: 602
Merit: 500

 Although that statement is agreeable for many people , don't forget many asic miner owners will want to cash out to cover expenses they spent on these hardwares , they may do that or not I am not sure, that may effect the market or not I am not sure about that neither , but there is that option as well.

my point is that cashing out now will NEVER cover their expenses to begin with. it'll barely cover a fourth of the cost now. the only thing that they would want to cover is electricity (should be cheap) and possible minimum payments if credit cards were used. otherwise, holding is the only thing that makes sense since cashing out to fiat now means they are losing money.

really simple example: you spent $10,000 to buy something.
in the first month it brought you back $1000
you are down $9000.
does cashing out that $1000 to cover the $10000 make sense?
it automatically puts you at a loss. a big one. so if people wait till the $1000 appreciates towards $10.000 they can at least hope to cover their losses.

people are in for big losses if they cash out from asics delivered since beginning of august.

I think you're making a big assumption.

There are miners that have been simply collecting coins they've minted and storing them for a rainy day.
Now that when they see their miners are no longer profitable, they'll want to recuperate their starting costs & some pocket change (at a minimum)
Sure, new miners will not be able to recover their investments... but there are thousands and thousands of already established miners waiting to pay off their investments.

They've already paid them off. your assumption is contradictory too - that those who were profitable have waited to sell and those who it will be mining at a loss will sell too instead of waiting.  there is also a lot more "new" miners than old ones by a huge order of magnitude.  Just wait and watch .
sr. member
Activity: 516
Merit: 283

 Although that statement is agreeable for many people , don't forget many asic miner owners will want to cash out to cover expenses they spent on these hardwares , they may do that or not I am not sure, that may effect the market or not I am not sure about that neither , but there is that option as well.

my point is that cashing out now will NEVER cover their expenses to begin with. it'll barely cover a fourth of the cost now. the only thing that they would want to cover is electricity (should be cheap) and possible minimum payments if credit cards were used. otherwise, holding is the only thing that makes sense since cashing out to fiat now means they are losing money.

really simple example: you spent $10,000 to buy something.
in the first month it brought you back $1000
you are down $9000.
does cashing out that $1000 to cover the $10000 make sense?
it automatically puts you at a loss. a big one. so if people wait till the $1000 appreciates towards $10.000 they can at least hope to cover their losses.

people are in for big losses if they cash out from asics delivered since beginning of august.

I think you're making a big assumption.

There are miners that have been simply collecting coins they've minted and storing them for a rainy day.
Now that when they see their miners are no longer profitable, they'll want to recuperate their starting costs & some pocket change (at a minimum)
Sure, new miners will not be able to recover their investments... but there are thousands and thousands of already established miners waiting to pay off their investments.
hero member
Activity: 602
Merit: 500

 Although that statement is agreeable for many people , don't forget many asic miner owners will want to cash out to cover expenses they spent on these hardwares , they may do that or not I am not sure, that may effect the market or not I am not sure about that neither , but there is that option as well.

my point is that cashing out now will NEVER cover their expenses to begin with. it'll barely cover a fourth of the cost now. the only thing that they would want to cover is electricity (should be cheap) and possible minimum payments if credit cards were used. otherwise, holding is the only thing that makes sense since cashing out to fiat now means they are losing money.

really simple example: you spent $10,000 to buy something.
in the first month it brought you back $1000
you are down $9000.
does cashing out that $1000 to cover the $10000 make sense?
it automatically puts you at a loss. a big one. so if people wait till the $1000 appreciates towards $10.000 they can at least hope to cover their losses.

people are in for big losses if they cash out from asics delivered since beginning of august.
sr. member
Activity: 434
Merit: 250

 Although that statement is agreeable for many people , don't forget many asic miner owners will want to cash out to cover expenses they spent on these hardwares , they may do that or not I am not sure, that may effect the market or not I am not sure about that neither , but there is that option as well.
hero member
Activity: 602
Merit: 500
i'm sure everyone realizes that since difficulty keeps jumping by 30% each round that my prophecy is about to come to fruition. 
once this happens i'll be announcing my new religious movement for everyone to follow.
legendary
Activity: 1246
Merit: 1010
It took until July 2013 to get to .2 Phashes/second.  Last weekend, we added that capacity.

http://blockchain.info/charts/hash-rate?timespan=30days&showDataPoints=false&daysAverageString=1&show_header=true&scale=0&address=
legendary
Activity: 1904
Merit: 1038
Trusted Bitcoiner
based on my current  estimates miners are paying hefty price for their machines. no machine received in the last 2 months with ROI at current prices in fiat (def not in btc). currently the price miners have paid for their machines is at minimum $200! crazy irrational miners should've just held unto their coins or  bought more on their credit cards. i feel bad for those who have to pay off their credit cards

I spent over 50BTC on mining  in the cloud.

current hash rate: 0.00Gh/s

Cry

sorry to hear...
the bloodbath is about to start in the next 1/2 months. it'll be bloody

did you get a bfl mining contract or something?

couldhashing

Is Thursday still the anticipated day for mining to begin?

yes
legendary
Activity: 2324
Merit: 1125
based on my current  estimates miners are paying hefty price for their machines. no machine received in the last 2 months with ROI at current prices in fiat (def not in btc). currently the price miners have paid for their machines is at minimum $200! crazy irrational miners should've just held unto their coins or  bought more on their credit cards. i feel bad for those who have to pay off their credit cards

I spent over 50BTC on mining  in the cloud.

current hash rate: 0.00Gh/s

Cry

sorry to hear...
the bloodbath is about to start in the next 1/2 months. it'll be bloody

did you get a bfl mining contract or something?

couldhashing

Is Thursday still the anticipated day for mining to begin?
hero member
Activity: 602
Merit: 500
this means that if miners are rational they will all STOP selling
otherwise they will be mining AND selling at a loss. they'd have to be either altruistic or stupid.
hence i believe in the next coming months most miners will HOLD their btc and not sell at current prices no

And since the anecdotal evidence is that most miners are buying their mining rigs on credit, they will have to either repay or default on their credit cards. Unless all miners decide to just default on their credit repayment, that means they will be forced to sell BTC at less than the cost they paid to mine them, driving the cost DOWN.

I want to personally thank miners for doing this and providing cheap BTC for those of us who are simply buying!  Grin

doubt it, what's the point of only partially repaying off your credit card at all. they'll just make minimum payments and wait it out. only mgio here sounds like he wants to sell at a neverending loss Cheesy
full member
Activity: 150
Merit: 100
Thank you! Thank you! ...
this means that if miners are rational they will all STOP selling
otherwise they will be mining AND selling at a loss. they'd have to be either altruistic or stupid.
hence i believe in the next coming months most miners will HOLD their btc and not sell at current prices no

And since the anecdotal evidence is that most miners are buying their mining rigs on credit, they will have to either repay or default on their credit cards. Unless all miners decide to just default on their credit repayment, that means they will be forced to sell BTC at less than the cost they paid to mine them, driving the cost DOWN.

I want to personally thank miners for doing this and providing cheap BTC for those of us who are simply buying!  Grin
legendary
Activity: 1988
Merit: 1012
Beyond Imagination
I guess lots of pre-order money will start to be refunded (Through CC/paypal) and reach exchange later
legendary
Activity: 1904
Merit: 1038
Trusted Bitcoiner
based on my current  estimates miners are paying hefty price for their machines. no machine received in the last 2 months with ROI at current prices in fiat (def not in btc). currently the price miners have paid for their machines is at minimum $200! crazy irrational miners should've just held unto their coins or  bought more on their credit cards. i feel bad for those who have to pay off their credit cards

I spent over 50BTC on mining  in the cloud.

current hash rate: 0.00Gh/s

Cry

sorry to hear...
the bloodbath is about to start in the next 1/2 months. it'll be bloody

did you get a bfl mining contract or something?

couldhashing
hero member
Activity: 602
Merit: 500
based on my current  estimates miners are paying hefty price for their machines. no machine received in the last 2 months with ROI at current prices in fiat (def not in btc). currently the price miners have paid for their machines is at minimum $200! crazy irrational miners should've just held unto their coins or  bought more on their credit cards. i feel bad for those who have to pay off their credit cards

I spent over 50BTC on mining  in the cloud.

current hash rate: 0.00Gh/s

Cry

sorry to hear...
the bloodbath is about to start in the next 1/2 months. it'll be bloody

did you get a bfl mining contract or something?
legendary
Activity: 1904
Merit: 1038
Trusted Bitcoiner
based on my current  estimates miners are paying hefty price for their machines. no machine received in the last 2 months with ROI at current prices in fiat (def not in btc). currently the price miners have paid for their machines is at minimum $200! crazy irrational miners should've just held unto their coins or  bought more on their credit cards. i feel bad for those who have to pay off their credit cards

I spent over 50BTC on mining  in the cloud.

current hash rate: 0.00Gh/s

Cry
hero member
Activity: 602
Merit: 500
based on my current  estimates miners are paying hefty price for their machines. no machine received in the last 2 months with ROI at current prices in fiat (def not in btc). currently the price miners have paid for their machines is at minimum $200! crazy irrational miners should've just held unto their coins or  bought more on their credit cards. i feel bad for those who have to pay off their credit cards
legendary
Activity: 1988
Merit: 1012
Beyond Imagination
Actually the supply side is not a big problem, it will shrink no matter what, but the demand side is more difficult to estimate

The need for transaction is small, the purchase is mostly driven by long term investment. If bitcoin is allowed in the pension fond's investment portfolio, then the demand will rise fast, need some kind of breakthrough in wall street, but that will be tough

Savers like bitcoin, where are those savers?
legendary
Activity: 1666
Merit: 1057
Marketing manager - GO MP
Why is the assumption that miners are jobless bums living in squalor?  Can't they make money working while their rigs mine?

Because they have heat stroke induced brain damage.
newbie
Activity: 40
Merit: 0
Why is the assumption that miners are jobless bums living in squalor?  Can't they make money working while their rigs mine?
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