Topic: Why do i keep hearing "btc mined out of thin air" ? thus the price must go down - page 2. (Read 1924 times)

We went over this in 2011 MANY times, if you speculate on the future price of bitcoin, you better buy btc at current exchange rate. Because mining at lost mean you paid more.... terrible thinking.


If you had bought btc at that time, you would have made EVEN more than mining at lost.


When you pay electrical cost of mining every month, you're essentially "buying" btc every month. If the cost is higher than the market value of btc, you're a sucker for paying above the market value. Ask anyone that calculated mining carefully, if they want btc, would they rather buy or mine? you will get the answer.

The topic is "a lot of people are fucking dumb". The latest miner troll was talking about how every transactions costs $40 so obviously miners are making mad profitz and dumping everything no matter what the price is.

I still mine on GPUs and mining is still very very profitable in my opinion even though many say it is not. I mine altcoins and exchange for bitcoin and I live in an expensive electricity country.

The OP is simply looking at mining the wrong way I made that mistake long ago when BTC was around the $100 mark and I broke even.
Most people look at the coin value when they mint the coins. Yes this will break even or become a loss but if you look at the future value of bitcoin mining can be very cheap.
If a BTC becomes 2-10K then electricity is cheap and mining equipment too. If I had kept on mining then I would have much more coins now.

Miners are no longer pure miners but also speculators. Since the long term trend is still up then mining is still profitable!!

On the comment "btc mined out of thin air": Yes a minted BTC is generated by the network out of thin air, this does not mean no work had to be done for it to fall out of the air.

My $0.02

I think bitcoin mining is at an interesting stage.

Soon the limits of what can reasonably be achieved with ASICS are going to be reached and from there on
the potential increase in mining performance of the n+1th generation of miners isn't going to be as dramatic, as can already be observed.
The question then comes if and how new mining models will emerge.

People operating mining rigs at a loss while speculating on a bitcoin value increase are already moving towards a model i think might catch on.
If you look at smaller mining rigs or single usb devices as a form of lottery ticket it may make sense to operate them not in a pool but solo mine.
The chances of finding a block are slim but as the value of bitcoin increases this becomes more and more akin to partaking in a lottery raffle where people also accept that they are entering at a loss with a small probability for huge gains.
I've been thinking about getting a usb miner for exactly this purpose. Attach it to a raspi and have it mine solo. Enough people doing this would also mitigate 51% attacks and encourage a better distribution of hashpower.

The other side that is also already happening is big mining pool operators that use their scaling to make things viable.
I wonder if mining will become a highly specialized field with great barriers to entry or if something akin to my previous scenario will happen (people mostly operating at a loss for the hopes of sriking it rich). Of course ultimately lottery-like mining will become much less attractive as the rewards dwindle to nothingness and transaction fees become the primary income for miners.

Anyways, just my 2 cents

Thats a wrong way to look at the cost of mining BTC (or better word minting)

You cant ignore the capital cost of mining gear because its a sinking cost as the machine is depreciated so quickly.

To me, the cost of mining gear should be looked at as the cost of materials for minting BTC. as its usable lifetime is quite short. (in other words, you used it up for the short time to mine btc)

No matter how you slice it, the cost of minting btc can never just be the electrical cost.

There seem to be two potential topics for this thread.
1. Mining's effect on the price
2. Mining's viability as a business

I can't tell which one is the topic here, and the OP seems only to address #2. The post is incoherent. Why is there swearing and emotions?

Sounds like a terrible business plan!
A mining rig should not pay itself off in weeks or even months. No business would ever expect to pay off the "tools of the trade" in such a short time frame. So why should Bitcoin mining be any different?


Is that so yours can be worth more?
Mining with ASIC is pretty cheap as far as electricity is concerned. I don't care about the cost of the ASIC itself, you chose that path. The cost of production is very low, so BTC value (as far as the cost of production goes) is much lower than today.

FTR, I mined with GPU when the difficulty was <100k and the price was single digits, so mining was expensive back then (~$100/GH per month). It all works out in the wash as I'm sure it will for you too, but a mining guild? haha
Who gets to sell first?
Who stops someone else from selling before they're "allowed" to?
Who makes this order? and
Why should the last guy have to be last?
It sounds more like a pyramid scheme than Bitcoin to an outsider.

A perfect message to Winkelvii and Silbert. Miners should form a real guild and stop dumping all coins on the market.
I am not selling coins that I am mining.

Do the dumbfcks know how much it cost to mine btc?

If what they said is true, btc would never have any value and the price is 0 isnt it?

Here are some facts for those dumbfcks.

Buying a mining gear at current exchange rate, you will have very little chance to BREAK EVEN

Go check in mining section, price the current mining gear in BTC and calculate with conservative difficulty increasing rate and see for yourself.

If you're lucky and break even, your mining gear will use more in electricity than the cost of btc very soon after.

Remember all these didnt take into account the time and effort you have to spend to operate the mining operation.

What does this tell you? If you want to get some btc, the best way is to buy btc and spend your time doing something more profitable.

I'm just sick of the stupid "create btc out of thin air" argument.

Chao.