Re:Bitcoin Hash Rate Rapidly Growing Despite Price
by JumpCrisscross on Friday July 13, 2018 @01:38PM
(#17524977)
> mining operations would continue for a while after they stopped making a return on investment
Marginal return. The ASICs could have been bought for $10 with the expectation of making $1 a year and paying out 50¢ for electricity (a 5% yield). Now it’s making 51¢ a year (a 0.1% yield). Not enough to make economic sense, but enough to keep running the rig; 0.1% is more than zero.
Broadly, I was pushing back against the author’s inchoate claim that “the continued growth in hash power demonstrates a strong, continued belief in Bitcoin by miners worldwide.”
Marginal return. The ASICs could have been bought for $10 with the expectation of making $1 a year and paying out 50¢ for electricity (a 5% yield). Now it’s making 51¢ a year (a 0.1% yield). Not enough to make economic sense, but enough to keep running the rig; 0.1% is more than zero.
Broadly, I was pushing back against the author’s inchoate claim that “the continued growth in hash power demonstrates a strong, continued belief in Bitcoin by miners worldwide.”