Post
Topic
Board Economics
Re: Bitcoin price vs. hash rate?
by
TwinWinNerD
on 05/04/2014, 02:59:42 UTC
This is true but mining gives a continuous bitcoin flow to the miner. People can and have at various times made a bitcoin profit from mining. That is more bitcoins mined than bitcoins spent on hardware. Don't forget that bitcoin is worth more to the miner than the NPV of the investment. This is obvious otherwise no one would ever do it. If you want to truly understand the connection between price and hash rate you have to understand this point. Some people will mine at a loss.

I know that people have made a profit from investing into BTC hardware with FIAT. But at no time, where a Investment into mining hardware with BTC profitable in terms of USD.

(I don't count the time when BTC was 1200 USD and then some hardware was bought)