What's the main point of mining bitcoin if value goes up?

NeuroticFish

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Quote from: ?? on ??

I started mining two years ago through my web sites which we sell JAC Products and also Mobile Phone. I love mining in my user's equipments. Wink

I started My job from ACTOBIT

Unless your users consent to mine for you, what you do is most probably illegal. So have your fun until somebody will sue you.

SAHucker

newbie

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Quote from: NeuroticFish on October 21, 2021, 03:35:42 AM

Quote from: Jaycee99 on October 20, 2021, 11:28:29 AM

What's the main point of mining bitcoin if the value goes up? like this month

Mining is a business, completely different from investing/holding or trading.
Miners pay for hardware, pay for electricity, confirm transactions and get paid for that. Afterwards they can sell or hold, that's a completely different story.

Keep in mind that miners will earn even is Bitcoin price falls. This can make a difference sometimes.

I agree, it's a business. I formed a LLC so that miner hardware, electrical system hardware and electricity are expenses that can be written off against the gain. Otherwise, if/when the IRS should happen to know how many BTC you hold, without a business, you can't balance the capital and operations costs of getting those BTC against their value.

artarax

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it was really helpful, thank you

NeuroticFish

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Quote from: Jaycee99 on October 20, 2021, 11:28:29 AM

What's the main point of mining bitcoin if the value goes up? like this month

Mining is a business, completely different from investing/holding or trading.
Miners pay for hardware, pay for electricity, confirm transactions and get paid for that. Afterwards they can sell or hold, that's a completely different story.

Keep in mind that miners will earn even is Bitcoin price falls. This can make a difference sometimes.

kano

legendary

Activity: 4634

Merit: 1851

Linux since 1997 RedHat 4

The issues are simply one of:

1) I'm desperate, I need cash
bitcoin mining is not the answer

2) I want to mine bitcoins and maybe in the future when they are worth even more, sell some
yep that works

3) I'm a big company, I wanna find a get rich quick system with our money
they wont be posting here on the forum in the first place

BlackHatCoiner

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Farewell, Leo

Quote from: Jaycee99 on October 20, 2021, 11:28:29 AM

It may be weird to say but please bear with me.

I understand your confusion. The internet is filled with garbage when it comes to bitcoin. The kind of articles I'm referring to may already have affected you negatively.

The above answer should be enough if you were wondering what's the point of bitcoin mining. However, I'm going to reply to this specifically:

Quote from: Jaycee99 on October 20, 2021, 11:28:29 AM

What's the main point of mining bitcoin if the value goes up?

The miners are rewarded in bitcoins, not in a fiat. For instance, if you successfully solve a block, you will be rewarded with 6.25 BTC regardless of the exchange rate. This means that if the price rises, then the miners' reward will also worth more. Hence, they're even more incentivized to mine. So the main point of mining bitcoin when its market value goes up is that you can have a greater income with the same cost, which means more profit.

NotFuzzyWarm

legendary

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Evil beware: We have waffles!

The main point of mining BTC is what it has always been: To confirm transactions. Something cannot have (verifiable) value if there is no way for 2 or more parties to confirm the exchange of what they are trading/buying/selling...

It just so happens that because BTC is not a centralized service (or coin) ran by a company that has their own data processing centers like the credit card companies and banks do, all transactions instead run through and are stored on a public blockchain and the equipment used to verify the tx's is owned by miners.

How does one encourage others to spend $$$ to process the data? Pay them rewards for the work done that are worth more (in fiat) than what it costs the miners to purchase and operate their equipment. Things don't get much simpler than that...

Jaycee99

sr. member

Activity: 1036

Merit: 273

first, if you wondering I should know your sr. member. Since I started here in 2017 I only know the basics of ask and answering questions here on the mining forum but it was already years and years ago I stopped learning things that is related to mining.

I was wandering around on every forum and this question came up What's the main point of mining bitcoin if the value goes up? like this month to see here that mining is still a thing and there are still people who buy ASICS / GPU to mine.

please enlighten me from your own knowledge if you are going to say it's searchable on google. I'll search after I got a real up-to-date answer from you guys to see the difference. It may be weird to say but please bear with me. Plus its better to get answers from real time

Topic: What's the main point of mining bitcoin if value goes up? (Read 229 times)