What are miners doing with their profits? - page 2.

RealBitcoin

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Quote from: notlist3d on March 03, 2016, 10:55:29 PM

You say that but really there is nothing that makes right now that cheap. It is current price. Cheap... look back 220's through there now that was cheap. 6 months or so ago... now looks cheap. Right now is market price.

So yes we hope it goes up and speculate it hopefully. But there is no guarantee's in this game at all.

Haha and I was hesitant to buy at 150 euro, now soon the 400 euro will be the cheap one as we go through 1000 euro.

Miners will probably get their ROI pretty soon.

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Quote from: QuintLeo on March 04, 2016, 04:13:55 AM

When I have a significant amount of profit, for the near term it will probably go into more of whatever hardware is actually generating a profit for me.

9-)

I strongly suspect the big mines aren't as profitable as many folks assume - they've been hit by diff increases like everyone else, they just tended to get hardware cheaper so they could RoI it somewhat sooner.

Yes but look at the ones owned by Bitmain. Do you think they pay near per unit as we do? I highly doubt it. Also electricity it no doubt is a few cent's. How many .... hard to saw. But would bot surprise me 1-2 cents.

I think ones linked to manufacture are most profitable. Second I think the big mega mines, again they are getting discounts due to amount they buy. And again very cheap electricity.

There has to be a lot of profit or they would not continue to re-invest.

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When I have a significant amount of profit, for the near term it will probably go into more of whatever hardware is actually generating a profit for me.

9-)

I strongly suspect the big mines aren't as profitable as many folks assume - they've been hit by diff increases like everyone else, they just tended to get hardware cheaper so they could RoI it somewhat sooner.

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Quote from: RealBitcoin on March 03, 2016, 07:30:47 PM

Quote from: notlist3d on March 03, 2016, 01:36:12 PM

They interviewed the wrong ones then... these mega mines are making huge profit's. Cheap electricity and a some linked to makers of machines.... that leads to massive profits.

It's common sense these big mines are the ones doing the most dumping. And they can keep some but they are a far bigger percent of machines hashing then the home/hobby miner.

Home/hobby miners are small portion of hash at this point.

Well the free market will sort them out.

If they dump now because they are impatient, and the price goes up later, they miss out on big profits. So maybe they will save more next time.

But at the same time by dumping now, they let many newbies buy bitcoins cheap now, rather than buy later more expensive.

You say that but really there is nothing that makes right now that cheap. It is current price. Cheap... look back 220's through there now that was cheap. 6 months or so ago... now looks cheap. Right now is market price.

So yes we hope it goes up and speculate it hopefully. But there is no guarantee's in this game at all.

RealBitcoin

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Quote from: notlist3d on March 03, 2016, 01:36:12 PM

They interviewed the wrong ones then... these mega mines are making huge profit's. Cheap electricity and a some linked to makers of machines.... that leads to massive profits.

It's common sense these big mines are the ones doing the most dumping. And they can keep some but they are a far bigger percent of machines hashing then the home/hobby miner.

Home/hobby miners are small portion of hash at this point.

Well the free market will sort them out.

If they dump now because they are impatient, and the price goes up later, they miss out on big profits. So maybe they will save more next time.

But at the same time by dumping now, they let many newbies buy bitcoins cheap now, rather than buy later more expensive.

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Quote from: RealBitcoin on March 03, 2016, 12:09:56 AM

Quote from: notlist3d on March 02, 2016, 11:44:10 PM

Quote from: RealBitcoin on March 02, 2016, 09:49:07 PM

Quote from: allthingsluxury on March 02, 2016, 08:22:04 PM

People need to live and people are free to spend their money however they wish, as long as it isn't hurting others.

It is hurting us if they dump it all on the exchange for worthless fiat Sad

They should hold on to more of it.

I think you will find it's not regular people causing most of the dumping. The big mega miners are ones who I suspect do the most dumping. They have machines they want to pay off in fiat, and also big expenses. Also once they cash it out they have profit on books.

I think home/hobby account for very small section of dumping. I personally re-invest after expenses. I'm in it for the long term for the most part... so guess we wont know for a while if I did right thing or not.

Honestly its hard to tell, i watched a documentary a while ago, where many miners were interviewed, chines ones (with cheap electricity) and some of the bigger individual ones and most of them were in a loss and still kept going.

They were all in the long term.

Look it this way, if we win, we will be the new elite. If we lose we lose a few months/years and a big portion of the capital invested.

I think the upside potential is far greater than the downside.

They interviewed the wrong ones then... these mega mines are making huge profit's. Cheap electricity and a some linked to makers of machines.... that leads to massive profits.

It's common sense these big mines are the ones doing the most dumping. And they can keep some but they are a far bigger percent of machines hashing then the home/hobby miner.

Home/hobby miners are small portion of hash at this point.

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I doubt most miners are making serious cash. Unless you mine with chinese electricity prices.
Right now I think only bitfury and Spondoolies Tech miners are making a good profit. Bitmain overcharges their machines because they are not that efficient.

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Quote from: notlist3d on March 02, 2016, 11:44:10 PM

Quote from: RealBitcoin on March 02, 2016, 09:49:07 PM

Quote from: allthingsluxury on March 02, 2016, 08:22:04 PM

People need to live and people are free to spend their money however they wish, as long as it isn't hurting others.

It is hurting us if they dump it all on the exchange for worthless fiat Sad

They should hold on to more of it.

I think you will find it's not regular people causing most of the dumping. The big mega miners are ones who I suspect do the most dumping. They have machines they want to pay off in fiat, and also big expenses. Also once they cash it out they have profit on books.

I think home/hobby account for very small section of dumping. I personally re-invest after expenses. I'm in it for the long term for the most part... so guess we wont know for a while if I did right thing or not.

Honestly its hard to tell, i watched a documentary a while ago, where many miners were interviewed, chines ones (with cheap electricity) and some of the bigger individual ones and most of them were in a loss and still kept going.

They were all in the long term.

Look it this way, if we win, we will be the new elite. If we lose we lose a few months/years and a big portion of the capital invested.

I think the upside potential is far greater than the downside.

notlist3d

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Quote from: RealBitcoin on March 02, 2016, 09:49:07 PM

Quote from: allthingsluxury on March 02, 2016, 08:22:04 PM

People need to live and people are free to spend their money however they wish, as long as it isn't hurting others.

It is hurting us if they dump it all on the exchange for worthless fiat Sad

They should hold on to more of it.

I think you will find it's not regular people causing most of the dumping. The big mega miners are ones who I suspect do the most dumping. They have machines they want to pay off in fiat, and also big expenses. Also once they cash it out they have profit on books.

I think home/hobby account for very small section of dumping. I personally re-invest after expenses. I'm in it for the long term for the most part... so guess we wont know for a while if I did right thing or not.

RealBitcoin

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Quote from: Hirose UK on March 02, 2016, 09:54:17 PM

there are no exactly answers of this question unless you ask to the miners.

but if you ask to non-miner maybe I'll say they use it for their daily necessities or buy something they want to

I just moved the thread there, I hope miners will answer it Cheesy

Quote from: roadbits on March 02, 2016, 10:41:07 PM

Yes, it is true. It all depends on individuals. I don't like in reinvesting again and again in same thing whether it is mining or some other investments. So after I achieve my target in certain investment than I will try to move funds to other investments and will continue with same investment or increase little.

Ok but after you achieved ROI? Because you can have profits as income-expense, but you can have total ROI with total income - total expense.

After you have recovered your initial investment, would you reinvest?

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Quote from: Ferrero on March 02, 2016, 06:09:14 PM

It all depends on their strategy and assumptions. If they strongly believe in mining, they would reinvest most of the profits. Otherwise, they would withdraw it and invest in other kind of assets.

Yes, it is true. It all depends on individuals. I don't like in reinvesting again and again in same thing whether it is mining or some other investments. So after I achieve my target in certain investment than I will try to move funds to other investments and will continue with same investment or increase little.

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there are no exactly answers of this question unless you ask to the miners.

but if you ask to non-miner maybe I'll say they use it for their daily necessities or buy something they want to

RealBitcoin

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Quote from: allthingsluxury on March 02, 2016, 08:22:04 PM

People need to live and people are free to spend their money however they wish, as long as it isn't hurting others.

It is hurting us if they dump it all on the exchange for worthless fiat Sad

They should hold on to more of it.

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People need to live and people are free to spend their money however they wish, as long as it isn't hurting others.

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i think miners are human and human need a life,vacation,pay bills,and food, i assume,they do use their mining profits for paying their everyday needs,and save the rest for the price increase or buying more rigs to make their profit more bigger

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Quote from: leowonderful on March 02, 2016, 07:54:51 PM

Quote from: DimensionZ on March 02, 2016, 07:33:35 PM

I have a friend who is a Bitcoin miner and he is self-employed. All his rent, monthly bills and food are paid for by his altcoin mining rigs so I guess you could get by just from mining. He is probably saving up something in a wallet for long-term investment as well.

What if bitcoin price plunged? i'd assume he'd be screwed.
Anyways, most miners nowadays attempt to roi and then spend their money. They have to earn enough to buy the next-gen miner. If they dont earn enough, theyll sell on amazon or ebay and sell for ridiculous prices.

He does say that his friend is mining altcoins, so it is not necessarily the end of the world for him if it happens. As long as the value of the altcoins he would be mining goes up at the same rate that Bitcoin goes down, he probably wouldn't even notice the difference.

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Quote from: DimensionZ on March 02, 2016, 07:33:35 PM

I have a friend who is a Bitcoin miner and he is self-employed. All his rent, monthly bills and food are paid for by his altcoin mining rigs so I guess you could get by just from mining. He is probably saving up something in a wallet for long-term investment as well.

What if bitcoin price plunged? i'd assume he'd be screwed.
Anyways, most miners nowadays attempt to roi and then spend their money. They have to earn enough to buy the next-gen miner. If they dont earn enough, theyll sell on amazon or ebay and sell for ridiculous prices.

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I once heard that miners (in China) are selling their coins to the rich Chinese people who want to transfer money out of China.

Therefore, maybe they do not use exchanges to cash out their profits.

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From someone who used to mine back in GPU days, I would say, I used my profits into acquiring more and newer GPU's back then therefor I was contributing back to the network using my profit and at the same time was making my computer rig, much cooler and stronger in terms of performance. Nowadays same goes with miner, they spend some of their profits into purchasing better and more efficient mining equipment's and the remaining profits are used for personal expenses.

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Shit, did I leave the stove on?

I have a friend who is a Bitcoin miner and he is self-employed. All his rent, monthly bills and food are paid for by his altcoin mining rigs so I guess you could get by just from mining. He is probably saving up something in a wallet for long-term investment as well.

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