Post
Topic
Board Mining speculation
Re: new bitcoin difficulty to 263,358,983 and future profitability of mining
by
Rannasha
on 18/10/2013, 05:12:38 UTC
Well, the MISTAKE miners are making is they are calculating break-even using current or near-term BTC prices.  5-10-20 years from now, assuming mass acceptance, a BTC might be worth several orders of magnitude more than it is today.  So, taking that perspective, BTC .00001 tomorrow might be worth the same as BTC 1 today.  It is a risk, for sure.  It is a stretch, for sure.  It means mining at "losses" today, for sure.   But years from now, continuing to mine at a loss today will be seen as having been a brilliant move when BTC .0001 pays for your grandchild's university education.

Just something to think about.

On another note, I do think eventually BTC mining will be essentially centralized as the cost of machines required for big BTC mining (I'm suggesting 1+ BTC per day will qualify as big mining) continues to increase in power and price.  Then, as per design, "old technology" miners will profit from transaction fees, instead.

Just my 2 satoshi...

The one making the mistake is you, not the miners.

If you assume that the BTC price will increase, you can simply buy BTC. Instead of buying mining equipment for $1000, you could buy ~7 BTC. The mining equipment will most likely not produce 7 BTC over its lifetime, so you're better of just holding those BTC. It's also easier and less risky.