Quote from: brg444 on October 25, 2014, 04:27:02 AM

Quote from: MrBig on October 25, 2014, 04:24:49 AM

Quote from: brg444 on October 25, 2014, 01:39:41 AM

Quote from: MrBig on October 25, 2014, 01:07:56 AM

I'm talking about centralization of mining and this crook Sam Cole milking BTC for fiat. Meanwhile, you're talking about BTC becoming the dominant world currency and decentralizing the global economy? I think we're on totally different pages.

And I'm saying centralization of mining is not happening and miners in majority are not dumping BTC for fiat.

Well if the mining profit margins are so narrow, how are they staying in operation without dumping BTC for fiat to cover their costs? They must have endless reserves of cash to hold all that BTC until the price rebounds right?

1. They have millions of dollars from selling mining gears
2. They have millions of dollars from VC investement
3. They have millions of dollars in Bitcoin profit from mining in the early days

So yes they must be burning through quite a lot of cash right now but in the long run they will be fine and they know it. Of course I am not suggesting they are ALL holding 100% of the Bitcoin mined but my guess is they are holding a good majority of them.

Additionally, I don't see a problem for them to cover some costs by selling to fiat during a bear market. You can be certain though that they will not "dump" their BTC during a bull market.

They're trying to get the largest market share, and as stated their costs are bellow $400. By selling they're raising capital to expand, as long as it's above their costs they're at profit (and get the benefit of squeezing other guys out). It's a win/win sell at (some) profit and guarantee more profit. They're not wall street to play the risk game. Even if they were true believers VCs would force them to sell.