Quote from: Jutarul on December 16, 2013, 11:06:56 AM

Quote from: Voodah on December 16, 2013, 10:43:39 AM

Is this sustainable?

This is not an AM flame.. I've just been thinking about this a lot lately and I'd love some opinions from the experienced people that are actually in the business of mining.

The current situation is more or less a mess, because either companies are actively involved in fraud or have not developed the necessary pricing schemes to protect customers enough from the market volatility and network growth. AM is currently pioneering a business model which should insulate customers from network growth projection errors, but it will likely be reserved for larger businesses and collaborations (franchise).

The only way to make profit right now in terms of btc is to take advantage of the tech arbitrage between the cost of building your miner and the yield. That's why AM (dependent on valuation) is principally a better choice than just outright buying a miner at market value. That narrative will change to power cost arbitrage, but not before the operating profit margins from mining are down to less than 2-5 fold.

That's more like it. Thanks for the honest intelligent answer.

Could you expand on this:

Quote

That narrative will change to power cost arbitrage, but not before the operating profit margins from mining are down to less than 2-5 fold.