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You're talking about imperfections in the market. I.e. You having a cheaper source of power than everyone else which allows you to mine the same amount of bitco
by changchuming 9y ago
You're talking about imperfections in the market. I.e. You having a cheaper source of power than everyone else which allows you to mine the same amount of bitcoins at lower costs and thus higher profits. Thus, some of the $27 million is not used on electricity and becomes profits instead. In reality, how likely is this scenario in which you have a persistent cheaper source of energy which other miners cannot access?
- Klathmon 9y agoPretty realistic. One of the largest US mining operations are said to be located in Seattle where there is dirt cheap hydroelectric. So are many of the Chinese operations. It's not as mich of a zero sum game as it might seem, it's more of a race to the bottom. If your competitors are running on cheaper electric, you'd better find some cheaper electric or they are going to increase the difficulty to the point that it's not profitable for you.