Interesting post on increasing SHA256 mining efficiency

[The_Krakenite]

Bitcoin Plunges

I can't stop laughing when I see clickbaity titles like this. Gold plunges half a percent today due to global warming woes!

Really???

People who invest in bonds maybe should stay out of commodities? And Christ, most bondholders should at least still remember the commodities shit-show of the early 70s.

That said, miners do not HAVE to sell assets from the balance sheets. They can always raise more capital by dilution or.... drumroll.... issuing more bonds.

Right now, miners are trying to raise capital to get ready for the halving. The rewards will drop on a nominative value, but the value of BTC itself should rapidly increase. Everyone wants to get their Exahashes up ahead of time (for obvious reasons). Selling a little bit of BTC on the sheets (could) if played right, pay off. But the more preferred approach is to collateralize the BTC.

We're still a number of months away though...

 

[deaddog]

That said, miners do not HAVE to sell assets from the balance sheets. They can always raise more capital by dilution or.... drumroll.... issuing more bonds.

Right now, miners are trying to raise capital to get ready for the halving. The rewards will drop on a nominative value, but the value of BTC itself should rapidly increase. Everyone wants to get their Exahashes up ahead of time (for obvious reasons). Selling a little bit of BTC on the sheets (could) if played right, pay off. But the more preferred approach is to collateralize the BTC.

We're still a number of months away though...

You would think with all this know as a fact that the price of both bitcoin and the bitcoin miners would be increasing.

If the cost of mining gold were to double that doesn't mean the demand will double.
Gold mining increases when the price increases and falls off when the miners can't make a profit.

It will be interesting to see where Bitcoin goes in the next cycle. I hear the hype and the reasons bitcoin should increase (keyword is should) but I'm not seeing the price rise.
I'll sit on the sidelines until price moves.

 

[The_Krakenite]

If the cost of mining gold were to double that doesn't mean the demand will double.

If the cost of mining oil from Canadian oilsands doubles, I can ASSURE YOU (barring long-tailed risk) that the price of OIL in Canada is going to go significantly upwards.

Unless you're going to tell us that laws of supply & demand have been a scam since inception.

 

[deaddog]

Oilsands mining cost has nothing to do with world oil price. If the cost of mining goes up the oil companies shut down unprofitable operations and/or beg for subsidies.

 

[The_Krakenite]

Great, you really should have told Europeans then that they had nothing to worry about when it comes to gas/oil issues with Russia.

 

[deaddog]

Great, you really should have told Europeans then that they had nothing to worry about when it comes to gas/oil issues with Russia.

And how did that effect world oil prices? And what does it have to do with Canadian oil sand mining?
All I'm saying is that the halving may not have the effect on bitcoin that it had in the past. The hype is over. It's a good trading instrument but not something you want your networth tied up in.
It's possible that by increasing the mining cost you might increase the price but it won't increase the supply of bitcoin. The supply is already out there. It's already been mined and today it will get you 26 to 30 grand. who knows what it will get you tomorrow.

 

[The_Krakenite]

All I'm saying is that the halving may not have the effect on bitcoin that it had in the past. The hype is over.

There are so many times I've heard that line in the past. The halving always wins out. You can plan for this-time-is-different, but everyone who's done so has regretted it terribly.

It's possible the Fed will jack up rates to 20% in an attempt to finally crack core-inflation. Now that could definitely affect EVERYTHING. But, we'll have even worse problems to worry about in that scenario.

As for not tying up your net worth into it. Well of course not. Diversification is the only free lunch.

 

[deaddog]

There are so many times I've heard that line in the past. The halving always wins out.

Except when it doesn't. Like every thing nobody knows the future.
I hope it takes another run. But until it does I'll keep my money in inflation ravaged fiat.

 

[YouHodler]

It is not only the BTC Miners effect. Some other factors are ruling the markets.

In the next few weeks, the global financial markets, including cryptocurrencies, will have to go through significant events.

The first is the triple expiration of futures and options on US exchanges. Waiting for the expiration of monthly, quarterly and three quarterly contracts. It often happens that the dynamics of quotes of traded assets, including cryptocurrencies, changes to the opposite in the medium term shortly after the expiration period ends.

In addition, the US fiscal year ends on September 30. In our opinion, these two very important events will soon cause quite a volatile reaction both in the stock markets and in the cryptocurrency markets. We expect increased volatility in the crypto market caused by the shake-up of investors' portfolios in the medium term..