Quote from: bcp19 on August 30, 2013, 09:09:59 PM

Many years back, the gold companies knew they could use leeching techniques to extract minute quantities of gold from huge piles of dirt. Back then it was abandoned as too expensive. Now that the value of gold has gone up, they are starting to use these techniques to get that gold. Through inflation, it now cost more to leech that gold than it would have when they refused to do it, yet the added value makes it worthwhile. The major mining concerns care about fiat, it's only certain individuals who care about holding the gold, mainly due to the amount needed to invest.

The gold will get mined sooner or later, it just depends on the cost vs the reward in Fiat. The same is true of BTC. Few people are able to buy and hold when compared to all of the people mining. The paying BTC to mine more BTC only works for certain individuals. To repeat what has been said to me... You can lead a horse to water.......

I am not sure I completely understand your analogy.

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Through inflation, it now cost more to leech that gold than it would have when they refused to do it...

Ok, so the cost to leech (mine) the gold has increased due to inflation.

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...yet the added value makes it worthwhile.

If your operation produces less then the amount of gold you could have bought with your initial capital, then your capital would be better used else where. You do not know what the price will be when you are able to sell your gold.

As a gold producing operation, you should be concerned with the profit or loss from operations and not speculating on the price of gold. Significant price changes could have a tragic effect on the future cash flow. To prevent speculation, the company could lock in the price of gold with derivatives.

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Few people are able to buy and hold when compared to all of the people mining. The paying BTC to mine more BTC only works for certain individuals.

So people should turn their current capital(bitcoin, fiat, ect.) into a cash flow that pays out less then their starting capital? I cannot see how this is a good strategy. I'll tell you what, if you or anyone else wants to they can pay me 150 of any currency and I will pay them 10 per month for the next 12 months, fully escrowed, of the same currency.