Miner pricing changes just like Bitcoin does. It's dependent on supply and demand. When mining profitability increases, so does demand. The ability to produce more machines lags behind demand increases, meaning pricing can increase violently.
I can only hold quotes for so long. No way to determine what pricing will look like in the future. In this type of market, buyers need to be prepared to buy quickly and be decisive.
The bear market has been all about getting the cheapest price. The bull becomes much more about availability. I expect there to be a massive capacity shortage, causing hosting pricing to go up in general. People who have already deployed will definitely have an advantage in this market.
The more demand that comes into the industry, the more scammers also appear trying to advantage of inexperienced buyers. Even those who are experienced have the potential to be taken advantage of. It has always been important to verify the seller is real, but now it is becoming more important because there's more money on the line.
The bull market is the time to make money as a miner and the window to do so has been historically really short.
In the bull market, attempting to cut costs and corners can be extremely expensive mistakes. Mining is difficult because individuals are generally more successful the lower their initial investment is, but there are many points where paying less creates problems and you can pay way more on the backend trying to save a buck up front. This becomes significantly more problematic in the bull market because every second your machines aren't hashing is significant revenue loss.
Understanding the dynamics of the market is essential for being successful. Key takeaways,
-Miner pricing will be volatile -Miner supply and availability will be constantly changing -Mining capacity will likely disappear pretty quickly -Miners will need to be decisive as a result of the above -Higher due diligence is a good idea
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36 sats \ 1 reply \ @wingalt 11 Nov
You're late, don't get rekt
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Pretty much unless you got some fiat games
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Thanks for the tips
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Mining capacity will likely disappear quickly?
Can you elaborate on this point?
Thanks for sharing Alex!
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Actually electrical capacity available to plug in. It takes time to build infrastructure
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This will help
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15 sats \ 1 reply \ @OT 8 Nov
Have you seen an increase in demand yet? It looks like retail is still sleeping
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Definitely an increase in demand but not from retail. Retail should probably stay out of the market this cycle
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