Re:Ask HN: What is the Bitcoin price level at which miners w...
by nartz on Wednesday January 17, 2018 @02:49PM
(#16171140)
This is a logical but too theoretical argument.
Counter-arguments:
1. Mining equipment is a sunk cost usually, so many will keep mining. Inotherwords, its easy to continue operations as normal versus trying to sell off all the equipment (at a loss?) Also, cloud mining contracts are locked in for a year or two, most cannot be cancelled, so mining continues regardless.
2. The difficulty may not actually decrease that much to have a huge impact on the profitability. It really depends on the magnitude of the mining drop-off.
Counter-arguments: 1. Mining equipment is a sunk cost usually, so many will keep mining. Inotherwords, its easy to continue operations as normal versus trying to sell off all the equipment (at a loss?) Also, cloud mining contracts are locked in for a year or two, most cannot be cancelled, so mining continues regardless.
2. The difficulty may not actually decrease that much to have a huge impact on the profitability. It really depends on the magnitude of the mining drop-off.