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I think this is what we call “self-limiting”. Maybe miners are subsidizing their mining by BTC appreciation (though, it seems it’d be easier to just buy BTC), a
by benreesman 4y ago
I think this is what we call “self-limiting”. Maybe miners are subsidizing their mining by BTC appreciation (though, it seems it’d be easier to just buy BTC), and if they are then some people are going to find new jobs when the price changes slope.
Problem solved.
- woodruffw 4y ago“Self-limiting” is a game-theoretic property, not an economic property. The point of the post is that there’s a fundamental economic unreality in how these mining companies are valued, and all signs (such as hearty executive bonuses) point to the fact that their leadership is aware and is emptying the bag before leaving others holding it.
- mdoms 4y agoThis is covered in the article.
- andreyk 4y agoThe post makes this exact point actually, so seems the author agrees.
- benreesman 4y agoI mostly agree, my little TLDR is a matter of emphasis. This article should be like a tweet: “Watch out for MinerCo, their depreciation schedule looks wonky, I’m short!” And then maybe footnote if it’s not obvious. But it’s Movie Trailer Voice: “The Problem with BitCoin Miners”. Wait there is one problem that so exceeds in importance all the other pros and cons that it’s The Problem? Oh no you’re short some companies and want people to sell them. Jim Cramer’s got to retire someday.