4 ms·
Selling pickaxes vs gold mining. One is quite a bit less risky than the other.
by rangibaby 9y ago
Selling pickaxes vs gold mining. One is quite a bit less risky than the other.
- deleted 9y ago[deleted]
- rdiddly 9y agoThe question was, why don't the pickaxe manufacturers charge more, since there's an axe shortage. Maybe they will, when they finally get around to filling all those orders. Or maybe they're just trying not to alienate their core market?
- wmf 9y agoYeah, it does look bad if the price is so high that it's literally impossible for miners to profit.
- microtherion 9y agoThey would not have to set extortionate prices. They simply could auction off whatever supply they produce to the highest bidder. With a market as rife with… optimists as cryptocurrencies are, there's a good chance they could capture more than 100% of the profits. It seems to me that bitcoin mining should be about as purely economic a business as there is. It's not like their clients would not abolish the ASIC manufacturers as soon as their hardware is no longer cost effective.
- cortesoft 9y agoRight, but there was never a time during the Gold Rush where there was a shortage of pickaxes.
- rangibaby 9y agoA modern goldmine needs more sophisticated equipment to extract what gold is there. It’s not a perfect analogy but I think it is very close