That's not entirely correct. I don't need a gold miner to trade gold but I need a bitcoin miner to trade bitcoins.
Why? You don't need to have bitcoin miner to trade bitcoins.
Topic: What if mining suddenly becomes unprofitable for most miners? - page 3. (Read 7084 times)
September 24, 2013, 03:22:49 PM
September 24, 2013, 01:57:26 PM
Mining already IS unprofitable for most miners.......
September 24, 2013, 01:54:33 PM
That's not entirely correct. I don't need a gold miner to trade gold but I need a bitcoin miner to trade bitcoins.
Why? You don't need to have bitcoin miner to trade bitcoins.Dear 'high'commander,
you are high and stupid and have missed the point completely. stfu and go die.
September 24, 2013, 01:50:51 PM
That's not entirely correct. I don't need a gold miner to trade gold but I need a bitcoin miner to trade bitcoins.
Why? You don't need to have bitcoin miner to trade bitcoins. September 24, 2013, 01:31:52 PM
Difficulty-adjustments will ensure that in the event of miners shutting down the difficulty goes down as well and mining profitability will increase again.
Exactly. Eventually the hardware will catch up with Moore's law and mining will be run by big corporations with access to cheap electricity and large data centres.
Bitcoin's future isn't related to the profitability of miners any more than gold's future is linked the to profitability Goldcorp etc. It is linked to wider adoption and the possibility that something better will come along.
September 24, 2013, 01:22:28 PM
Fud theory:
Mining becomes almost unprofitable. Nobody is investing in mining equipment but there is still a small gain to be made.
Somebody with deep enough pockets continues to buy equipment (although at a loss) just to drive and then keep the entire mining unprofitable for most miners at a certain loss even for themselves.
Eventually more miners quit and the mysterious organisation comes close to 51%.
Mining becomes almost unprofitable. Nobody is investing in mining equipment but there is still a small gain to be made.
Somebody with deep enough pockets continues to buy equipment (although at a loss) just to drive and then keep the entire mining unprofitable for most miners at a certain loss even for themselves.
Eventually more miners quit and the mysterious organisation comes close to 51%.
And then bitcoin becomes worthless and they wasted all their money to steal worthless stuff.
It's a FUD theory , of course it ends with worthless bitcoins.
September 24, 2013, 01:06:53 PM
The reason it could be far more extreme this time is because of the massive list of preorders of ASICs. This creates a lag in the adding of appropriate hash power and makes it very easy for malinvestments to occur since noone knows exactly when he'll receive his ASIC, and thus, whether it will amortize at all.
With GPUs it was a different situation because your local hardware shop will have a different competency level compared to BFL or Avalon.
What makes this even more interesting is that ASICs have 0 value (apart from materials perhaps) besides generating Bitcoins, whereas GPUs used to be modern GPUs that could be reused and resold for gaming machines.
With GPUs it was a different situation because your local hardware shop will have a different competency level compared to BFL or Avalon.
What makes this even more interesting is that ASICs have 0 value (apart from materials perhaps) besides generating Bitcoins, whereas GPUs used to be modern GPUs that could be reused and resold for gaming machines.
September 24, 2013, 12:41:50 PM
Fud theory:
Mining becomes almost unprofitable. Nobody is investing in mining equipment but there is still a small gain to be made.
Somebody with deep enough pockets continues to buy equipment (although at a loss) just to drive and then keep the entire mining unprofitable for most miners at a certain loss even for themselves.
Eventually more miners quit and the mysterious organisation comes close to 51%.
Mining becomes almost unprofitable. Nobody is investing in mining equipment but there is still a small gain to be made.
Somebody with deep enough pockets continues to buy equipment (although at a loss) just to drive and then keep the entire mining unprofitable for most miners at a certain loss even for themselves.
Eventually more miners quit and the mysterious organisation comes close to 51%.
And then bitcoin becomes worthless and they wasted all their money to steal worthless stuff.
September 24, 2013, 12:02:50 PM
Fud theory:
Mining becomes almost unprofitable. Nobody is investing in mining equipment but there is still a small gain to be made.
Somebody with deep enough pockets continues to buy equipment (although at a loss) just to drive and then keep the entire mining unprofitable for most miners at a certain loss even for themselves.
Eventually more miners quit and the mysterious organisation comes close to 51%.
Mining becomes almost unprofitable. Nobody is investing in mining equipment but there is still a small gain to be made.
Somebody with deep enough pockets continues to buy equipment (although at a loss) just to drive and then keep the entire mining unprofitable for most miners at a certain loss even for themselves.
Eventually more miners quit and the mysterious organisation comes close to 51%.
September 24, 2013, 11:51:32 AM
It's not like an on/off switch, when mining starts to become unprofitable the difficulty will adjust accordingly until mining becomes marginally profitable again for the average miner. The speed of the network is still increasing exponentially, but this will level off at some point and perhaps even decrease a bit for a while but it's not going to go to 0 or become so slow that it harms the verification process.
September 24, 2013, 11:28:05 AM
The inefficient will be replaced by the efficient. Hashrate will still increase.
September 24, 2013, 11:24:00 AM
There's a lot more to bitcoin than making the maximum return on your investment.
I heard this rumor too.
September 24, 2013, 11:03:49 AM
My GPUs where still minig at lost when BTC where exchanged at 2$ .. I sold those BTC over 200$..
So, I dont plan to stop mining as I will sell those over 2000 $ ; P
So, I dont plan to stop mining as I will sell those over 2000 $ ; P
Hmm - but instead of paying for your electricity you could buy BTC and you'd have them more than with mining. Then you could also sell them over 200$ and be better overall. There is no rational case for mining when you pay more for electricity than you'd pay for the BTC bought directly.
Buy maybe your argument is that some people never get this idea that they could buy more BTC then they mine - so they will be mining BTC regardless of the economy of that. That's possible.
Mining is also about protecting the network from attack. If people stop mining because it is no longer profitable, and mining becomes too centralized and suffers a successful attack, everyone's bitcoin will quickly become worthless.
There is no good reason to discourage people from bitcoin mining at this point. We're all still early adopters. There's a lot more to bitcoin than making the maximum return on your investment.
September 24, 2013, 10:44:11 AM
My GPUs where still minig at lost when BTC where exchanged at 2$ .. I sold those BTC over 200$..
So, I dont plan to stop mining as I will sell those over 2000 $ ; P
So, I dont plan to stop mining as I will sell those over 2000 $ ; P
Hmm - but instead of paying for your electricity you could buy BTC and you'd have them more than with mining. Then you could also sell them over 200$ and be better overall. There is no rational case for mining when you pay more for electricity than you'd pay for the BTC bought directly.
Buy maybe your argument is that some people never get this idea that they could buy more BTC then they mine - so they will be mining BTC regardless of the economy of that. That's possible.
People are lazy and it is easier to keep mining than figure out how to buy bitcoins.
September 24, 2013, 10:32:23 AM
My GPUs where still minig at lost when BTC where exchanged at 2$ .. I sold those BTC over 200$..
So, I dont plan to stop mining as I will sell those over 2000 $ ; P
So, I dont plan to stop mining as I will sell those over 2000 $ ; P
Hmm - but instead of paying for your electricity you could buy BTC and you'd have them more than with mining. Then you could also sell them over 200$ and be better overall. There is no rational case for mining when you pay more for electricity than you'd pay for the BTC bought directly.
Buy maybe your argument is that some people never get this idea that they could buy more BTC then they mine - so they will be mining BTC regardless of the economy of that. That's possible.
September 24, 2013, 10:05:19 AM
Those miners with electricity included in the rent won't bother, and those miners with high electricity cost will shutdown first and buy coins instead, that will drive up the exchange rate and in turn improve the rest of the miner's profitability
September 24, 2013, 09:42:08 AM
My GPUs where still minig at lost when BTC where exchanged at 2$ .. I sold those BTC over 200$..
So, I dont plan to stop mining as I will sell those over 2000 $ ; P
So, I dont plan to stop mining as I will sell those over 2000 $ ; P
Hint: Avoid selling.
September 24, 2013, 09:32:55 AM
My GPUs where still minig at lost when BTC where exchanged at 2$ .. I sold those BTC over 200$..
So, I dont plan to stop mining as I will sell those over 2000 $ ; P
So, I dont plan to stop mining as I will sell those over 2000 $ ; P
September 24, 2013, 06:13:21 AM
https://bitcointalk.org/index.php?board=81.0
It appears that "sudden" means November-December.
Lots of tears in some of those threads.
It appears that "sudden" means November-December.
Lots of tears in some of those threads.
September 24, 2013, 05:47:05 AM
There is nothing different in the current growth rate from the historic growth rate. Since its inception Bitcoin difficulty has grown exponentially and I expect this continue for some time.
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