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Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
touhonoob
on 02/11/2014, 04:56:10 UTC
Downtosimple:

Dont understand your logic.

But miners already run at a loss.

The price is currently low because there is more selling than buying.

Sellers sell because they think price will go down in future, thats why they dont want to hold.  

Gamblers who buy are thinking the price will go up in the future, as of now more people think price will go down rather than trend up.

How do we know miners are running at a loss while difficulty is up up and up? In my mind, the pure cost is only electricity, the others could be regarded as sunk cost. How much is the electricity, anybody knows here?

Also in my mind, leverage shorting is the main power driving prices down. Others could be negligible. Importantly, where does the shorting cover to close their shorts?

Some mining factories in China claim that their cost of electricity is nearly 0.

This is possible some miners have this advantage of almost zero cost for electricity, but for the masses no.They must be stealing it from the governenment, either way someone pays the cost.  

There is also land rent and maintenance expenses.

You should take a look at this documentary from NHK about Bitcoin in China: https://www.youtube.com/watch?v=IwLXSoQZIMM
Chinese people who invest in mining factories are super bullish on the future value of Bitcoin.
Since the investors have a lot of spare money, they are not hurry to cash out.
The investment of mining factories is long-term for Chinese investors.

Edit:
English Sub here
https://www.youtube.com/watch?v=B58tVkY6NVg