Bitcoin Miners Got Crushed by Crypto Winter. 2023 May Bring More Pain

coindesk ^ | 12/30/22 | Eliza Gkritsi

[catnipman]

Bitcoin miners had a rough 2022, showing “how to not build a mining business,” However, industry experts don’t see 2023 as any better, unless markets improve significantly.

high energy prices, increasing competition for Bitcoin blocks and a bear market hit miners, knocking out those with high leverage.

The sector was shaken by bankruptcies and loan defaults, and next year will likely bring even more pain.

lots of money was spent over the last year to boost hashrate ... but those investments didn’t pay off, as companies loaded up on debt to finance the growth only to see the economics of crypto mining break down.

"Many miners acted too deterministically," projecting bitcoin (BTC) would hit $100,000 and not even considering that the price would drop below $20,000

[shotgun]

Imaginary currency to trick the masses out of their real currency.

[canuck_conservative]

I think they pay for it

wouldn't be so bad if they paid full freight, like we do ... but usually they get a sweetheart rate, because they're "bulk consumers"

usually, bulk rates are reserved for large industrial projects, the argument being "well, it's for the new mine or factory, so at least there will be thousands of well-paid employees, putting money back into the local economy, supporting other workers, and paying lots of taxes"

but here, these crypto-bastards employ nobody - it's all computers ... meanwhile they use up the energy consumption of a small city ... and if they ever get any money, they take it away to their Swiss bank accounts

so voila, the local community gets nothing back ... screw these selfish jerks!!

[aMorePerfectUnion]

—> wouldn’t be so bad if they paid full freight, like we do ... but usually they get a sweetheart rate, because they’re “bulk consumers”

If they qualify for the bulk rate and use it, it benefits the power company. If it didn’t, they would not make it available. The market decides the price and not socialist do gooders.

—> but here, these crypto-bastards employ nobody - it’s all computers ...

Computers are built by companies that employ people. The power company employs people. The mining companies, refining companies, etc. all employ people. The market creates demand that provides sales that pay all those employees.

Mining companies pay taxes in whichever jurisdiction they are incorporated in. The buildings they own or lease pay property taxes.
Government taxes are paid on each unit of energy consumed
- often a higher government share than the profit of the energy producer.

Just how high a tax rate do you demand in total?

You sure sound like a Trudeaux Socialist and not a conservative.

In what sense do you believe anything conservative??

[AZJeep]

If the miners all give up, there will be no crypto!

[seowulf]

As I see it currency is a promissory note based upon the exchange of valuable goods and services.

Crypto is a medium of exchange based upon the amount of energy you waste.

[SamAdams76]

I tried to make heads and tails out of crypto currency but I just can't get my head around it.

I like to invest my money in tangible things, like stocks, bonds, real estate, even precious metals.

I'll leave the crypto currency to others to get rich - or bankrupt from - accordingly.

[taxcontrol]

Mining is no longer profitable even with ASIC miners at these low-price points. So I have turned off my mining operation. I am just one of the smaller, “home” miners that was leaning on mining as my side hustle. I am out till the prices improve.

[taxcontrol]

I disagree. If we the citizens do not stand up to the Government, it will be regulated INTO existence.

[canuck_conservative]

if crypto-miners need a lot of power, but contribute nothing back to the local community,

they can build their own damn power plant

there’s no obligation on the community to supply them huge amounts of electricity when they provide nothing back

[aMorePerfectUnion]

—€ if crypto-miners need a lot of power, but contribute nothing back to the local community,

I just listed how they contribute.

You are a Canadian socialist aren’t you??

Do you have any conservative beliefs too?

[canuck_conservative]

they can build their own power supply

[aMorePerfectUnion]

Please share any conservative beliefs you have?

Do you have any?

[canuck_conservative]

you support Putin, you Russian clown

who the hell are you to judge anybody?!

you don’t even believe in “freedom” or “liberty”

[cgbg]

Crypto is the old idea of a printing press in your basement.

If you are good at it they call it counterfeiting and throw you in jail.

If you are bad at it nobody accepts it as payment—no harm, no foul.

;-)

[aMorePerfectUnion]

you support Putin, you Russian clown

I do not.

Do you have any conservative beliefs?

What are some conservative things you believe?

[fella]

The “Safe And Effective” trope applies to crypto investments too.

[fella]

“a plain ‘ol ordinary scam: Magic Internet Beans conjured out of thin digits at the snap of a GOTO statement”

OOooooo . . . . I'm stealing that to take to other sites.

[fella]

"Imaginary currency being held by someone else with access to your imaginary currency. What could possibly go wrong?"

Kind of like buying precious mental certificates? Because if the system collapses you've got a piece of paper.

[fella]

"Real currency is based on an illusion too, but it’s backed by the full “faith and credit” of the federal government, which is equal to zero. And those dollars are losing their purchasing power as an out of control government puts more and more unbacked dollars into circulation."

Saying stuff like this on FB will get your account erased.

[tsomer]

Bitcoin will continue because it has becoming necessary in order for certain kinds of people to transact certain types of business.

I’m not referring to drug dealers or criminals here; they have the wherewithal to maintain their wealth in any form the wish to store it. I mean us.

Banks and other financial institutions are following Paypal’s lead and going ‘woke.’ They are erecting a social monitoring system they will use, not only to block transactions between individuals on the thinnest of pretexts, but to confiscate wealth without fear of consequences from anyone they object to. Unilaterally. Without fear of recourse.