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The Cope Multiplerisk-fundamentals.ghost.io/what-is-the-value-of-a-bitcoin-miner/
257 sats \ 6 comments \ @OT 4 Nov bitcoin_Mining
zaps forwarded to @Fundamentals (80%)
An interesting read by @Fundamentals on the mining industry.
At the end of the day, a large amount people engage in mining simply because it's ungovernable and they want to stick it to the man. Few people are in it for the profit. That's irrational from a capital markets perspective.
Proofs are ungovernable and so is being irrational, and this is really the only way I can explain those who choose to dedicate resources to bitcoin mining.
It was also discussed on his podcast Rock Paper Bitcoin here:
https://fountain.fm/episode/CP2eccnO65c1fqFRvKiy
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68 sats \ 1 reply \ @Fundamentals fwd 6 Nov
Thank you for posting this.
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0 sats \ 0 replies \ @OT OP 6 Nov
Too bad no one had anything to weigh in. It can be hit and miss sometimes.
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42 sats \ 0 replies \ @Bell_curve 11 Nov
I met @Fundamentals in a Telegram group today
He solved a math problem for me
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0 sats \ 2 replies \ @Bell_curve 11 Nov
Financially irrational but if your goal is to stick it to the man and be ungovernable, maybe it is rational from a non financial perspective (utility is not only money).
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21 sats \ 0 replies \ @OT OP 11 Nov
It does feel like a duty for bitcoiners to do a little mining at home. Just in case all these huge mining farms get captured somehow.
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0 sats \ 0 replies \ @Bell_curve 11 Nov
from the link:
The good news is that fortunes are made in irrational markets, not rational ones. Armed with good information, one might succeed as buyer or a seller. In the land of the blind, the man with one eye is king. It is very likely that the winners in this game are those who 1) earn enough Bitcoin outside of mining to hold in reserves; and 2) can effectively deploy their Bitcoin to ongoingly lower their fixed USD costs, for this seems to be the only real path to rational mining returns. In future analyses, I’ll explore strategies where miners can leverage their Bitcoin reserves to reduce operational costs, potentially transforming the economics of mining. Stay tuned.
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