Quote from: jjbliss on June 10, 2011, 08:30:05 PM

Quote from: clickbangdone on June 10, 2011, 06:19:12 PM

Quote from: Coma on June 10, 2011, 05:50:36 PM

Quote from: clickbangdone on June 10, 2011, 05:29:24 PM

Anybody with $700 can start mining for a current cost of $2 per bitcoin and sell it for 13 times the cost.
So yeah it's a bubble.

If you could setup a gold mine today and mine gold for $115 an oz and sell it for $1500 oz how long do you think gold would continue selling for $1500 oz.

Wake up

But bitcoins are not infinit, as gold.
As far as we know...

It's simple the ease of entering the market means more miners are coming.
I'm sure there's a endless supply of people in the world who would be happy to make 30% on their money mining bitcoins. Which means say goodbye to 15 times your cost of productionin the near future. It doesn't matter about the end supply number of bitcoins. Competitive mining is coming which will lower the price of bitcoins.

The Mining forum is full of people saying mining isn't worth it. They're only saying that to discourage people to mine(they want it to themselves) by saying that it encourages people to buy bitcoins which miners are selling to cover their costs.

Keep in mind, that because of the difficulty adjustments, more miners does not mean that the supply will increase at a higher rate. The more miners there are, the less each will get in return, thus making it less economic to generate bitcoins and if anything would increase the price.

The bottom line. Mining is so profitable at the current price it will never sustain it's current ROI long term.
Mining competition is coming at current bitcoin prices and difficulty. And people will invest money in mining until it becomes unprofitable. To me a in a speculative market like bitcoins at the current difficulty 3 times cost of production seems reasonable.

Do you really think this anomaly of mining for almost free money will continue very long?

clickbangdone

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