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What others said. There's another possibility here too: mine at a loss now, then hold onto the BTC, in hope that BTC goes up in value. If you mine $10 worth of
by IgorPartola 12y ago
What others said. There's another possibility here too: mine at a loss now, then hold onto the BTC, in hope that BTC goes up in value. If you mine $10 worth of BTC a day, but it costs you $20 to do so, that's not a loss if a week from now the value goes up 4x.
Not saying that's what they are doing, but it is not unlikely that huge mining operations know more than the public about what might happing going forward.
- tlrobinson 12y agoYeah that's what I meant by "engaging in speculation", but as someone else pointed out, it would be far more rational to stop mining and buy $20 worth of Bitcoin rather than spend $20 mining $10 worth of Bitcoin...
- x3sphere 12y agoFor small-time miners, yes. But wouldn't any large scale operation run the risk of moving the market? By mining, they continue to amass coins without having to worry about this, so maybe that is a factor.
- gizmo686 12y agoWouldn't you be better off using your money to buy $20 of BTC today?
- moe 12y agoThe idea is that with mining you can generate BTC for less than it would cost to buy them.
- cmsmith 12y agoExcept that in your scenario why would anyone mine at $20 and hold when they could just buy at $10 and hold, doubling their return? With super-low transaction and storage costs, there's nothing special about the BTC I mined relative to the BTC I bought.