Re: ASICMINER: Entering the Future of ASIC Mining by Inventing It
if AM keeps dumping those BTC at that rate, we will see $50 and then probably $25 sooner or later.
Please link me to your source.
I really would like to see this information and I am going to assume for now you did not just pull it out of your ass.
Thank you.
You are correct, my wording was a bit off, so let me rephrase that:
.. if people with ASIC miners keep dumping those BTC at that rate, we will see $50 and then probably $25 sooner or later.
You really think they hold on to the coin they mine? Why? It's money for nothing. Fiat in the bank
while BTC has lost close to 30% in a week. So, how much it cost to mine 1 BTC if you are the ASIC chip/equipment manufacturer like AM is?
By my calculations, USD 0.507 in electricity costs per btc mined.
The assumptions:
Power efficiency: 8.3 J/GH (ref: https://bitcointalk.org/index.php?topic=204030.0)
Electricity cost: USD 0.06 per kWh (was mentioned by someone earlier in this thread, cannot find official confirmation)
Current hashes to win: 91635939047418116 (ref: http://blockexplorer.com/q/hashestowin)
Current Bitcoin reward per block: 25 (http://blockexplorer.com/q/bcperblock)
So it will remain profitable (i.e. value of mined BTC exceeds electricity costs) until network hash rate is more than 100x today's hash rate at current prices.
fuck...
Let's assume they are intelligent, and they know the bitcoin market better than others. When would they sell? When the price was $150 or when the price was $60?
Money for nothing? Don't be ridiculous. They are mining something of value. They want to maximise their returns, not sell out near the bottom of the market.
Put simply: they are professionals, not panicky amateurs of which there are so many in the bitcoin market.