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> In PoW you input cash to buy miners and power to obtain coins. Cash > ??? > Coins. In the long run yes but mining equipment is an asset which can be sold or
by CTDOCodebases 4y ago
> In PoW you input cash to buy miners and power to obtain coins. Cash > ??? > Coins.
In the long run yes but mining equipment is an asset which can be sold or used as collateral for a loan.
I’m not an accountant but I’m sure there are some tax benefits to depreciation. In a bull run the miners even appreciate in value too so I don’t know how that would work out.
A better way of thinking about mining is it’s a way to dollar cost average into Bitcoin if you have access to cheap power.
- viraptor 4y ago> In the long run yes but mining equipment is an asset which can be sold or used as collateral for a loan. Staked coins in PoS can be withdrawn / used to the same effect.
- CTDOCodebases 4y ago> Staked coins in PoS can be withdrawn / used to the same effect. AFAIK it's not possible to simultaneously stake a coin and use it as collateral for a loan without giving up custody.