Update:
Secretive Chinese bitcoin mining company may have made as much money as Nvidia last year
This is a new CNBC article that shares this estimate of how much money Bitmain has made in 2017.
Now remember that 10-20M $ are enough to prop up the BTC price temporarily and you can see
that they have a huge warchest to do whatever is necessary to keep up the price. And this is only
a single company that is not even only a mining company nowadays.
If you think they will just let their business that generates 3-4 billion $ / year in profits fail and close their operations
you are completely delusional.
Bitcoin won´t fall below the average cost of mining a single Bitcoin and everyone who makes predictions
like BTC at 1000 $ or lower doesn´t understand the incentives in play here.
Secretive Chinese bitcoin mining company may have made as much money as Nvidia last year
Quote
Based on conservative estimates of gross margin of 75 percent and operating margin of 65 percent,
Bernstein analysts calculate that Beijing-based Bitmain made $3 billion to $4 billion in operating profits in 2017.
Bernstein analysts calculate that Beijing-based Bitmain made $3 billion to $4 billion in operating profits in 2017.
This is a new CNBC article that shares this estimate of how much money Bitmain has made in 2017.
Now remember that 10-20M $ are enough to prop up the BTC price temporarily and you can see
that they have a huge warchest to do whatever is necessary to keep up the price. And this is only
a single company that is not even only a mining company nowadays.
If you think they will just let their business that generates 3-4 billion $ / year in profits fail and close their operations
you are completely delusional.
Bitcoin won´t fall below the average cost of mining a single Bitcoin and everyone who makes predictions
like BTC at 1000 $ or lower doesn´t understand the incentives in play here.
Somehow missed this, I see you made this post a couple of weeks back. Now, I've always felt that miners play at least a small role in propping up Bitcoin prices - at least in the very act of selling the bitcoins they generate. If the overhead calculations are correct, then they would need to put up more than half of the coins they generate on the market for selling daily. I suspect that this is a lot less - a lot of other factors aren't taken into account (BTC isn't also the only coin mined).
But temper this: last year, when the price really rose, was also the year that saw a lot of new entrants into the mining industry - major players like Bitmain are not increasing, but losing their majority hashpower. They can't do much on their own ($20m is as you say only a temporary measure and this warchest is not liquid) and we've seen even post NYA that miners actually aren't the collective force we thought they might be.
