47 sats \ 0 replies \ @suidoc 13 Nov 2022
Probably because investments has been done prior to the crash and investors in this space knows the true value of Bitcoin and understands that this price of bitcoin is just temporary.
That said, a lot of miners are mining at a loss right now. So depends on how deep the pockets of these miners are before they will be shutting down and wait for better times.
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20 sats \ 1 reply \ @cozy 14 Nov 2022
Because market price is a measurement of knowledge about utility, not the utility itself.
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15 sats \ 0 replies \ @cozy 14 Nov 2022
E.G. Before gold had an explanation for its value as an abstraction for rarity (as well as a useful base metal, for say, blocking out ultraviolet light), it was useless. I'm sure the cave men would rather have had a steak.
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5 sats \ 0 replies \ @Wil 13 Nov 2022
Miners need to make a profit constantly so unless there is some weird financing going on rn it seems like someone is making a power grab to bankrupt the other miners. Or maybe btc doesn't care how much a $ is worth now.
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5 sats \ 0 replies \ @tomlaies 13 Nov 2022
Miners mine as long as they are profitable or else stop mining and buying Bitcoin with fiat - if they are rational.
When price drops but they continue mining indicates that they are still profitable but with much lower margins.
If you look at https://www.nicehash.com/profitability-calculator/ - which is a shitty calculator but enough for a rough idea - you can see that even the newest ASICs with world lowest electricity costs should only barely be profitable. Which is interesting.
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0 sats \ 0 replies \ @02174b3c39_lntxbot 16 Nov 2022
Lag
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0 sats \ 0 replies \ @nullcount 14 Nov 2022
Wait... You're saying my home's heating unit can also earn BTC? Well, winter is coming and we staying warm no matter the price or hashrate.
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0 sats \ 0 replies \ @0330830bf9 14 Nov 2022
Same reason that custodial shitcoin exchanges rake in billions... dumb capital that lacks the conviction to "invest" and instead chases the illusion of yield and arbitrage.
There's enough opaqueness in the variables to operate mines too, so its well suited to companies looking to separate fools from their money.
In a perfect market, Bitcoin would be secured purely as a byproduct of waste heat, from water heaters in every home etc.
It's currently secured instead by waste capital that is drying up, and there will be a major collapse of the mining industry as we know it in a swift liquidation event.
The distribution of mining equipment at wholesale prices, from datacenters to residences, will be one of the most bullish catalysts in Bitcoin's history.
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0 sats \ 0 replies \ @selfish_gene 14 Nov 2022
после роста они не будут продовать...
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0 sats \ 2 replies \ @sommerfeld 13 Nov 2022
New players are coming in with better profit margins.
Most overleveraged miners already capitulated or keep mining but dump all their earned block rewards on the market to cover operacional costs and don't accumulate any.
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0 sats \ 1 reply \ @selfish_gene 14 Nov 2022
знаешь почему это делают? будет то чего ни кто не ожидает. парабалический рост
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0 sats \ 0 replies \ @sommerfeld 14 Nov 2022
If new players already make a profit, potential growth is not a necessity, only a nice-to-have.
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