Bitcoin16 Oct 2022 14:04
Is it a viable business option to mine bitcoin at an economic loss now, and hold onto them on the assumption that they will potentially be worth a lot more in the future?
There are estimated to be over 250,000 new mining rigs still in boxes worldwide, due to a combination of over supply, prohibitive mining costs and large upfront costs ( due to high energy costs) from the cloud mining host companies.
So FG should have no trouble getting hold of a bunch of miners, and lets say his new supersonic, super duper how's your father asci ultrasonic chip gives a 20% efficiency, lets say to bring the cost of mining 1bitcoin down from $25,000 to $20,000....therefore just about viable at today's prices.
To mine 100 bitcoins would cost$2,000,000 + all the r&d costs+ general overheads + cost of buying the mining rigs, so lets say $3,000,000 over 1 year and $500,000 a year overheads until the price reaches a point whereas its economic to sell them. If it reached $45,000 per coin after two years that would be a $500,000 profit on a $4,000,000 investment, assuming costs don't rise further.
These figures are totally off the top of my head but I read some the posts on here and wonder does anyone ever do the maths?
Selling on the software/chip technology, if successfully developed, for uses other than bitcoin seems the only plausible way of this R&d bearing fruit. There are enough miners out there to not bother going down that route, and boy are those companies struggling...and FG( through Miner One) doesn't have a great track record on mining.
Best to wait for a good payout from Venice, a nice rise to 3p on the back of that and get out would be my thinking.
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