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Some industrial scale miners might have commitments to buy electricity at a certain rate. It could be more expensive to break a contract than to keep their equi
by thinkmassive 5y ago
Some industrial scale miners might have commitments to buy electricity at a certain rate. It could be more expensive to break a contract than to keep their equipment running when the exchange rate temporarily falls below profitability.
Also not everyone has easy access to an exchange. Others may prefer to avoid the KYC paperwork, or simply be willing to pay a premium for freshly mined coins.
- gaff33 5y agoThere's a healthy power market - so the providers can and should work out a way for their clients to exit their contract and for them to sell the electricity elsewhere. Sure the client might be liable for some loss-of-earnings fees but this really should be better for everyone than this.
- thinkmassive 5y agoSure, but also take into account that a mining operation large enough to enter into electricity contracts probably has other obligations like facilities and staff. Overall it may not be worth the hassle to shutdown for what could be interpreted as typical exchange rate fluctuations.