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At Bitcoin’s peak, a single block was worth almost a quarter million dollars and miners may view the current market as a way to accumulate more Bitcoin at
by ttoinou 8y ago
At Bitcoin’s peak, a single block was worth almost a
quarter million dollars and miners may view the current
market as a way to accumulate more Bitcoin at lower prices
Don't understand that last sentence. They create money via using electricity and amortizing ASICs, not the other way around
- snarf21 8y agoMy take was that if they already bought the ASICs, mining may make sense at break even for electricity so they can continue to accumulate and hold bitcoin if they think it will pop to 20K+ or more in the future.
- downrightmike 8y agoThe miners are more than likely expecting that the future value is worth much more than the electricity today. Bitcoin went from 1k to 20 k inside of a year. If that happens again, or more, they would be able to sell at 10x the electricity cost.
- thewizardofaus 8y agoSpeculation. Might go closer to zero as well.
- tatersolid 8y ago> If that happens again... It won’t. It’s a bubble. No real commodity or currency increases 20x in value in a year. It’s funny-money, Just like the dotcom Boom in the late 1990s. Bitcoin is basically unused as a currency except by criminals, and has no functional advantages over other payment systems for honest people. Just like stock of pets.com in 1998.
- krageon 8y agoHave you tried sending money internationally with any reliability? Randomly getting shut down by PayPal, waiting for insane amounts of time before normal bank transfers get through, etc. Even if you completely ignore any other aspect of it, this is a legitimate use case that works well.