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This is an invalid argument. Mining needs hardware, which loses value as new hardware is released and mining gets harder. Thus, it depreciates over time.

• mirceal 4y ago
  the point is that you cannot compare apples to oranges and the constraints around bitcoin are NOT the same constraints like the ones around a vending machine. (so that applying the same model is probably a flawed approach)
  • ireflect 4y ago
    You misunderstood the vending machine analogy. The author argues that mining hardware is NOT like a vending machine, in terms of depreciation. Mining hardware becomes less productive over its lifespan, whereas a vending machine stays about the same until its broken. The author argues that these companies are applying the traditional “vending machine” depreciation even though, as you pointed out, it does not apply. And that’s the entire crux of how they’re overvaluing themselves.
  • _fizz_buzz_ 4y ago
    > the constraints around bitcoin are NOT the same constraints like the ones around a vending machine Exactly, that's the whole point of the article.
  • salmonlogs 4y ago
    Did you actually read the article?