If difficulty continues to rise and BTC prices do not rise with it, of course mining will be less profitable. However, this is unlikely to be the case for very long.

If Bitcoin price and difficulty collide so that mining is no longer profitable, people will start to switch off their miners. This will cause difficulty to drop such that mining is profitable again.

Obviously any time you make a business decision, you are expecting certain outcomes. In the instance of renting mining contracts, you are betting on the price of Bitcoin (long term) rising around the same amount as difficulty. Recently it has risen far more than mining difficulty.

Another thing you neglect to mention is that the price of Bitcoin is falsely deflated because Mt Gox, Virwox and Tradehill have stopped trading for about a week.


Thanks for the offer but I need to decline, I need more capital to expand my mining operation.