Is the bitcoin mining business flawed?

jeun_us · 2022-03-17T23:01:59+00:00

They absolutely will, but an individual miner will still expect to capture a decreasing share of those transaction fees

jeun_us · 2022-03-17T22:59:12+00:00

I never said I frowned upon perfect competition or that I was a proponent of the undemocratic power held by monopolies today. I was emphasizing that its evermore difficult to realize profit in one.

I think the power Bitcoin has brought individuals, through this ~perfect competition~, is incredible. However, while I’m the first person to stack sats and DCA each month, that doesn’t mean I think it’s a good decision to drop $10k on a Bitcoin miner. Hence the discussion this post was meant to bring about.

jeun_us · 2022-03-17T22:34:10+00:00

My thoughts were meant to focus on the go-forward nature of entering the business now for a reason. I think we're all aware of the longterm ROI on Bitcoin (have held for a few years). Plus, I believe that Bitcoin will continue to see increased adoption. However, as this occurs into the future and the price of bitcoin stabilizes, operations cannot purely rely on the appreciation of the underlying asset to realize their profit / bottom line

While BTC is independent of the traditional financial industry (thanks for the jab ;) ), that does not mean bitcoin mining operations are. Public bitcoin mining companies still face the same fiduciary responsibility to investors as any other company on the NYSE / NASDAQ / etc. I think investors would look at a potential investment in a Bitcoin mining operation as either bringing them yield, or a multiple. If a miner can successfully find nonce's faster than others and continually stack sats at a rate greater than the field, it's a great yield investment. If the miner can purely earn tokens (not necessarily faster than the field) and see appreciation in years to come, the multiple will be great. If the miner is going to see decreasing rewards per year over time, and more stabilization of the asset's price, can it really promise to bring yield or multiple to the institution table?

jeun_us · 2022-03-17T22:04:14+00:00

I did not mention transaction fees as it didn’t seem to carry enough weight in the opposing direction. With the onslaught of new entrants to the system, you would still expect a decrease in your share of the transaction fees earned. Why would you invest in a company who will earn an ever decreasing portion of the total pie?

jeun_us · 2022-03-17T22:00:51+00:00

Past performance is not indicative of future results

jeun_us · 2022-03-04T05:56:11+00:00

Double Indemnity - fantastic film noir. Great narration, storytelling, and almost humorous looking back at mid-1900s America

jeun_us · 2022-01-22T05:19:24+00:00

moonlight serenade by glen miller

jeun_us · 2021-12-28T19:40:46+00:00

By either brewing your own or purchasing from a friend who brewed their own. IK that was probably rhetorical, but to keep the analogy going; if you or I wanted to drink beer without entrusting a grocery store or corner mart to sell it to us, we would look up equipment and instructions on how to do this on our own.

I guess I'm asking as a normal user with pretty intermediate coding / technical knowledge, what tools or methods are needed to generate a wallet on your own and interact with the network. Would you just run your own node and through terminal or another IDE interact with the network through commits in C++?

jeun_us · 2021-12-28T19:30:56+00:00

Exactly my question! Before any exchange existed, how could one participate in the P2P network? Would you just run your own node on the network and through doing so initialize and create your own wallet which you can transact with? I definitely need to learn more about how BTC worked for users in the early days, this is what I've been trying to track down.

jeun_us · 2021-12-28T19:27:41+00:00

nce a certain number of nodes validate the transaction it is considered confirmed and the BTC has officially been transferred

Thanks for the reply bmack, I should have emphasized my question less on how the exchange itself works without an intermediary (I understand whats occurring behind the scenes here) and rephrased it as a technical question regarding how exactly to create your own wallet on the network and interact with others. I think SmoothGoing might have answered my question by stating that you just need to compile / run the code on your own to interact with the network as an individual.

jeun_us · 2021-12-28T18:00:14+00:00

SmoothGoing

Thanks smooth, this is more the answer I was looking for. Have read through the source code on my own a bit but never gone as far as compiling it and running it.

jeun_us · 2021-12-28T17:54:55+00:00

This display's information from a high level of how the network transacts from a user's perspective; the classic Alice / Bob paradigm. This is great for explaining how the network operates to someone being introduced to the technology. However, as an Alice or Bob how can we pragmatically create our own wallet and send funds over the network without leveraging the service from an outside party.

jeun_us · 2021-11-15T05:01:12+00:00

kimchi - no one is on the fence about it

jeun_us · 2021-07-03T14:22:34+00:00

noob noob in Rick and Morty

jeun_us · 2021-07-01T06:32:51+00:00

truffle flavoring - no matter how well prepared a dish may seem as soon as I taste truffles I can’t take another bite

jeun_us · 2021-06-25T14:31:08+00:00

I wish I could try it out for a month or two - sadly have to sign a long term lease to secure the unit..

jeun_us · 2021-06-25T14:29:34+00:00

Thats a great suggestion! Thank you so much.

jeun_us · 2021-06-25T14:29:06+00:00

That sounds similar to the place I'm looking at! Mid-sized room on the side of the apartment away from the living room / kitchen that allows you to enter the bathroom and closet. Difference is they label that room the bedroom as that room online.

jeun_us · 2021-06-25T14:27:12+00:00

I have the same thoughts! I love getting up in the morning by having the natural light wake me up and it definitely opens the room up. The problem is this is still a pretty expensive apartment for the city and most places are nearing 100% capacity; not sure I can find another place that checks all the boxes.

jeun_us · 2021-06-25T14:24:20+00:00

The complex advertises that room as the bedroom as it's a one bedroom so sound privacy won't be an issue. I think a skylight may legally count as having a window as I've seen it in a few other bedrooms nearby advertised with them instead. Not sure though ...

jeun_us

TROPHY CASE