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Simplest explanation: Big players are willing to operate at a loss to gain marketshare. Then when bitcoin hits $100k you're dominating the market and bringing i
by pastor_elm 8y ago
Simplest explanation: Big players are willing to operate at a loss to gain marketshare. Then when bitcoin hits $100k you're dominating the market and bringing in the big bucks.
- nwah1 8y agoSimpler explanation: computing power per dollar is continuing to improve.
- craigc 8y agoI don’t think that explanation makes sense. It isn’t about regular computing power, it is about the hash rate of the mining hardware. They use specialized hardware (ASICs), and if you look on this page you can see a breakdown of the hashrates: https://en.bitcoin.it/wiki/Mining_hardware_comparison https://en.bitcoin.it/wiki/Mining_hardware_comparison The top one (other than the Dragonmint miners which are not listed) is the Antminer S9 which you can see was released over two years ago. If you are aware of some new mining hardware that is much faster please let me know.
- vkou 8y agoIf you're spending $1 of electricity to mine $1 of coins, why not just spend $1 to buy the coins outright?
- deleted 8y ago[deleted]
- gomox 8y agoFreshly mined coins have a premium because they are clean (i.e. you are 100% sure they haven't been robbed before, which can create problems) and untraceable (i.e. there's no way to link them to the original assets used to purchase the miners). Other than that, a person might not have access to the equivalent volume of BTC but have easy access to energy/miners. Additionally, depending on how you predict hash rate and BTC price to evolve, mining might have a better ROI.