Quote from: Freeside on June 22, 2014, 08:55:21 PM

Rather than start a selling panic where we all lose out by selling below IPO, why not find a way to fix the mine so we all win?

There is nothing to fix. The hardware has been bought, it generates a mining income, but that will drop faster than snow melts in the desert and never come close to earning its cost. The only way to "fix" that is by preventing everyone else from buying mining hardware. How do you plan on doing that?

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PETA has ~1.2 petahash right? The network is now ~130 petahash so we are at about 0.9% or 313BTC or 185,100 USD per WEEK!

Yeah, and in two weeks it will be 30% less, and it will keep falling very very fast, so fast that in a few months it will earn less than they cost in hosting.. Moreover, 313 BTC isnt a whole lot of money compared to how much was invested.

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Now maybe Im just dirt poor, but that sounds like a lot of mulla to me. Im no mining expert (clearly), but that HAS to be more than enough to buy new mining gear and dig ourselves out of this hole right?

You mean withhold dividends and use that to dig an even bigger hole? Keep doing that, and soon enough there will be nothing left. Besides, do tha math, and see how little hashrate your dividend could possibly buy.

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If its not possible (and please tell me if its not) then why is ANYONE still mining?

Because large operations have an electricity cost that is at least 5x lower than Cryptx. Because KnC, Cointerra, cex.io and several others dont buy their hardware at market rates, but produce them for a cost that is by my guess, around 1/10th of the market price, and get even that subsidized by retail customers paying far too high rates, like Cryptx . And because many are as clueless as you and will buy miners no matter what.

If you want to know what I think is the least worst outcome at this point: sell all the hardware asap, some people still dont get it and will pay considerably more for it than it will ever mine. Pay out the revenue from the sales as dividend and call it a day. That is what would benefit shareholders the most, but of course, is of no benefit to the issuer, who will no longer pocket his 70+ BTC per week hosting fee. And since the issuer holds no shares whatsoever himself, I wouldnt hold my breath. Im sure he would love to withhold dividends and dig a deeper hole though. That would increase his hosting fee, he may well pocket some kickbacks on the purchase of new hardware, and lose nothing in the process. win-win for him, lose-lose for you.