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> use bitcoin mining when demand is low to help offset the cost I've looked at income statements of a bunch of public companies that mine Bitcoin, and one of t
by paulgb 5y ago
> use bitcoin mining when demand is low to help offset the cost
I've looked at income statements of a bunch of public companies that mine Bitcoin, and one of the most striking things is how much of the cost is actually depreciation of hardware. Granted, part of this is that they are running the hardware to its limits, but another aspect is that new improved mining hardware comes out frequently and pushes the old hardware over the profitability edge.
Basically, I'm skeptical that anyone can mine Bitcoin profitably without running the hardware 24/7. Other coins that use commodity hardware, maybe.
- vidarh 5y agoBut aggressive depreciation of hardware is in part a function of how much the electricity costs. If you're running off what is in effect "waste", then that would change the amortisation significantly. May well be that it won't change the cost structure enough - I treat this as the president deciding an announcement like this, which amounts to little more than "I've asked them to look into it", as a way to get some publicity. It could very well end up being silently put aside if the costs don't stack up.