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Don't forget about the $720M in "Mining Assets". I wouldn't be surprised if the true value were much lower than this, now that crypto prices have crashed.

• jsemrau 4y ago
  This could also include GPUs, Asics, and other mining equipment which given the upcoming ETH merge should be amortized differently.
  • aaaaaaaaata 4y ago
    People are still mining LTC/BTC/DOGE et al, aren't they?
    • ok_dad 4y ago
      There was an analysis recently that ETH accounts for something like 97 percent of the mining market’s value.
      • TrainedMonkey 4y ago
        That does not sound right, bitcoin fraction alone should be more than 3%. Maybe GPU mining market value as bitcoin is dominated by ASICs.
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        • remram 4y ago
          If only 3% of hardware owned by miners and dedicated to mining is put towards Bitcoin, doesn't that make it super-likely that a 50% attack will happen any day? Bitcoin is still "mainstream" (within crypto) and easy to trade so a double-spend could be very lucrative? The whole security of proof-of-work depends on "you can't beat the network", but when such a small fraction of available hardware is left in that particular network, what security does it have?
          • bitxbitxbitcoin 4y ago
            What you're missing is: 1) newer generations of bitcoin mining hardware are orders of magnitude more efficient so 3% of hardware isn't 3% of total SHA 256 computational capacity 2) 3% of hardware owned by miners is probably a GPU number. Eth is mined by GPUs, not ASICs. Hope this helps!
            • remram 4y ago
              So you're saying there's not that much mining power that could "switch over" to Bitcoin or ETH, because hardware is optimized for a specific network and would lose significant efficiency if switched to a different network? That makes sense to me thanks!
              • bitxbitxbitcoin 4y ago
                Exactly. If it even ran at all.
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      • yokem55 4y ago
        I think that is the share of GPU mining. ASIC's, which is what mine BTC and other SHA mined coins aren't in that figure.
• gkapur 4y ago
  I think they are claiming they can mine something like 10k bitcoin/year (https://twitter.com/ThePrivatier/status/1547613977231798272 https://twitter.com/ThePrivatier/status/1547613977231798272) going forward but I have no idea what the COGS/cost between labor/maintenance and electricity is to mine that. If it's say 50%, then those "mining assets" will pay back in 7 years. Seems like people are going to take a large haircut on whatever they deposited and then maybe get back some incremental cash over time.
  • oneoff786 4y ago
    You think there’s a 50% gross margin on mining Bitcoin, after the price has fallen heavily, and we’ve entered a global energy crisis?
    • loeg 4y ago
      Global energy crisis?
      • thematrixturtle 4y ago
        Checked your electricity bill lately? https://www.bloomberg.com/news/articles/2022-03-07/electric-bills-double-for-u-s-families-with-fuel-costs-surging https://www.bloomberg.com/news/articles/2022-03-07/electric-...
        • loeg 4y ago
          > Checked your electricity bill lately? My rates are 11-13 cents per kWh, the same as they’ve been for years. Our power is mostly hydro, with smaller amounts coming from nuclear and wind. So no, that pithy question isn't particularly useful.
          • secretsatan 4y ago
            Yeah, and that energy is infinite, so if we move all the miners to where you are that price will def stay the same