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91 sats \ 4 replies \ @benwehrman 22 Oct \ on: I’m Kent Halliburton, CEO and Co-Founder of Sazmining - AMA! AMA
From your experience, what is something most bitcoiners have wrong about bitcoin/mining/energy?
One of my favorite questions. Answer: ROI.
Why?
Bitcoin mining is a novel, 0 to 1 innovation -- the first time in human history we have a decentralized money printer.
It's a simple idea but something most gloss over but: Bitcoin mining is the only way to generate bitcoin
ROI is an evaluation of dollars in on dollars out. Why does it make sense to consider the ROI on Bitcoin mining if it's the only way to generate Bitcoin? It doesn't.
What does make sense, as a bitcoiner, is to evaluate if the sats mined are cheaper than if you purchased them on an exchange, which is a price comparison.
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This answer only makes sense if the asic is free.
To mine you’re investing up front in hopes that you can make enough hash profit (hash price - hash cost) to pay it off and some.
You can measure ROI in sats or dollars.
(Simple numbers for example)
0.05 BTC for a miner
Makes 0.03 btc in a year but costs 0.015 in electricity and maintenance so profit is only 0.015. Takes 3.33 years to recoup initial investment assuming hash margins don’t decay and miner has good uptime.
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From the crow’s nest, what blind spot do most sailors of the Bitcoin sea still carry? Rigs? From the system's high-level architecture, what short circuit do most navigators of the Bitcoin network still overlook? Gate configurations, hashing fanouts, or the latent overhead of the signal propagation that drives them? Mining winds vs the true cost of the current that moves them …
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I'm not sure if there's a question here or if it's an LLM rhetorical ramble?
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