Post
Topic
Board Speculation
Re: Sentiment in 2011
by
BitPirate
on 17/06/2013, 14:36:05 UTC
Miners' margin profits have made a new low due to the recent difficulty adjustment: http://blockchain.info/charts/miners-operating-profit-margin?timespan=500days&showDataPoints=false&daysAverageString=1&show_header=true&scale=0&address=

As this continues, it will take longer and longer to pay off an ASIC and miners will be forced to liquidate a larger perecentage of the 3600 daily BTC to cover their expenses.

Miners speculatively holding Bitcoins is not the usual state of things. They are a business, and soon they will have extremely tight margins like in the past. I give it 1 or 2 more doublings of the difficulty.

Your statement is entirely contradictory: "They don't normally hold" and "They will sell more now". You can't have it both ways. I suggest you re-examine your logic/biases to ensure your thought process is at least internally consistent.

Selling cheap is a race to the bottom that puts you out of business. If businesses are not making a profit selling cheap... they will sell at a higher price, or hold until the price rises.

TBH, this is just another proof point that we are oversold.