Yes, electricity plays a big role here. Those with special conditions (cheap/free electricity, solar power, etc.) will definitely raise the stakes. The others will fall behind in terms of profit...
Well, guys like you are here to make it harder for guys with free electricity that just want the money
But you're right, it is harder to get out than it is to get in. I predict that very few people will join in the following weeks until the network slowly evens out again as some people quit.
My point is, after you've bought the hardware, the incentive to "get out" is low. Maybe people running several multi card rigs will cut back, but the "hobbyist" miner like myself is here to stay.
Now, the incentive for new people to get in DOES get lower as the difficulty gets higher. Why spend hundreds on hardware that will never get paid back?
Now, the incentive for new people to get in DOES get lower as the difficulty gets higher. Why spend hundreds on hardware that will never get paid back?
Well, guys like you are here to make it harder for guys with free electricity that just want the money
But you're right, it is harder to get out than it is to get in. I predict that very few people will join in the following weeks until the network slowly evens out again as some people quit.