Quote from: mikeywith on December 28, 2021, 11:26:53 PM

Quote from: Heathen23 on December 28, 2021, 04:14:02 AM

Why are you stopping mining the moment the mining is not profitable? If your rental property is vacant or earning lower rent than expenses or in repair for few months do you sell it?

I merited your post because it does contain some very valid points of which I disagree with some, you turn your miners off once your power bill is higher than your profit in fiat, or else, if you pay 100$ to mine 50$ worth of bitcoin it really makes no sense.

While I do agree that mining IS indeed a form of business, it isn't exactly similar to running a shop or anything like that, mining depends entirely on the price of bitcoin in respect to the mining difficulty, there is exactly nothing you can do about it when it isn't profitable, you can market your goods, you can't spend money on ads in hope to generate more profit, you can't hire a better employee to increase your sales or anything you can potentially do with any traditional business.

The other point missing here is that running a business has a long term potential, even while operating at a loss you are building yourself a name/brand, experience, securing good employees, making loyal clients, it's okay to operate at a loss for as long as you can afford it because it could very well pay off in the long run, mining is more like a hit-and-run if you may, you are limited by the short lifespan of your mining gears and how long they can remain profitable, once you have to run them at a loss it's simply a game over.

I don't entirely disagree with you and phill here, but the idea is that investing in mining and investing in bitcoin can't be separated. so if you invest in BTC mining then you are betting on its value to increase, anyone who is certain that the value of bitcoin is going down will not touch mining with a wooden pile, and since both buying BTC and mining BTC depend on the evaluation of BTC the two things are closely related and IF the money you spend on mining gears doesn't give you back more BTC than you could buy, it's certainly a losing business.

But remember as we have talked before your country has a completely different set of tax rules regarding bitcoin than the USA.

Okay Lets pretend the warehouse guy could do 2 megawatts for us.

Lets say the five year contract was paid for the power and the customer as lost so he would get zero $$ vs ½ the coins he gets from us.

Lets say all we did from 2018 dec was plow our ½ coins back into more gear.

In the USA every profit we made would be non taxable and growing from 4 s9's to

1.9ph in btc gear and 40gh in ltc/doge gear and 8gh in eth gear would be 100% non taxable business expansion.

So sitting here that gear is worth 386k

and we do not owe any tax. that is how proper handling of expansion with usa tax laws works.

now that 386k in gear cost us ½ the coins it mines the other ½ comes to me and my 1 partners

so I get the coins earned by 95000 in gear at zero cost for the gear and power but this e coins will be taxable.

Next year maybe 125K for me alone.

Your business model is different as tax laws are different in your country.

I mine I buy gear I sell gear I repair gear = a business and active business but that is usa law.

now pretend I purchased 900 usd in coin in dec 2018 what coin grew to 95000 value and earns more every day

hmm maybe doge.

900 in doge at 0.002 usd is 450,000 doge and if it was all held perfectly until it hit 50 cents you would have 225,000 but owe tax on it.

So yeah I guess if I have invested in 900 usd worth of doge in dec 2018 and sold it when it hit 50 cents it would be better.

I know damn full well I would not have held it that long.