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Board Beginners & Help
Re: Some technical and economic concerns
by
luxgladius
on 18/06/2011, 14:42:47 UTC
With that drop, it's hard to imagine a substantial fraction not taking their machines offline and scaling down.

I don't think so. Taking the machines offline only saves power. Continuing to operate might still be more profitable than trying to sell their mining rigs.

Philipp

Well, as I said, I'm assuming the miner supply side will reach economic equilibrium in the next year and a half. This means that the cost to run a rig would be just under the revenue from the Bitcoins generated in doing so, in the aggregate. Power is a real cost after all. Therefore, dropping the Bitcoins generated by essentially half will cause the rigs to become unprofitable.
I was looking for this topic yesterday but the search function is not the best. It may have some discussion of interest.
http://forum.bitcoin.org/index.php?topic=7496.0

Many thanks, Kirian! As soon as I am able, I will see if I can revive that thread.