26 sats \ 1 reply \ @KaboomracksAlex OP 16 Mar \ parent \ on: Beware of millions of ways to lose your Satoshis mining this bull market bitcoin
Yeah I think hashrate will grow substantially but at the end of the, the winners will be the ones that can do it economically. There are many different large players operating internationally that can compete with groups like Black Rock.
It's really going to be interesting to watch it play out. I think there's going to be room for a lot of small and medium sized miners for at least another cycle. It's really difficult, capital intensive, and labor intensive for anyone to deploy miners.
There's a lot of competition for electrical infrastructure between AI computing and Bitcoin mining. This is a growing trend and will likely be more apparent after the halving when things take off.
One big limitation for Black Rock also is the hardware side of things which is centered in China.
It will always be profitable to mine Bitcoin a free power, unless the price goes to $0.
It will always be profitable to mine Bitcoin a free power, unless the price goes to $0.
Miners age like fish. Not fine wine. The moment they come off the assembly line, their value is decaying rapidly. With hashrate going up forever (Laura), miners might have a shelf life of ~3 years (making this # up). If the cost and maintenance of the miner does not recover enough sats to cover itself, then even with free electricity it will be unprofitable.
It is a well-understood business tactic to operate at a loss long enough to force your competition out of business.
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