U.S. crypto miner Core Scientific files for Chapter 11 bankruptcy, continues to mine Bitcoin [and another one bites the dust]

finance yahoo ^ | 12/21/2022 | Zoltan Vardai

[catnipman]

Core Scientific, one of the largest publicly traded crypto mining firms in the U.S. listed on Nasdaq as $CORZ, filed for Chapter 11 bankruptcy [ruh roh]

Core Scientific is still generating positive cash flow, but it is insufficient to repay the financing debt

Instead of liquidating, the company will continue regular mining operations while trying to reach a deal with senior security noteholders

The company owns approximately 5% of Bitcoin’s global hash rate

The loss in Bitcoin’s value and higher energy prices have narrowed profit margins of BTC miners worldwide [bummer]

[catnipman]

fascinating ... a bitcoin "miner" that was 100% financed by ACTUAL money is unable to sustain itself by genning up enough Magic Bean "money", AND needs an ACTUAL money bailout ... ironic, huh?

btw, owing 5% of the bitcoin ledger file maintenance activity doesn't seem to me to be any more "decentralized" than, say, Bank of America ...

[Codeflier]

I love how you say ACTUAL money, as if you have full faith in the BS government fiat currency. The one they can devalue greatly by creating more whenever they want. Hate to tell you but it’s “magic bean” money too.

[Tell It Right]

True that, Codeflier, on "actual" money being heavily manipulated by the government. But when the government demands our taxes on April 15th, the U.S. dollar is the only currency that matters. As long as that's the case the U.S. dollar will always have at least some tangible value.

The crypto currencies have no tangible value like that.

[Presbyterian Reporter]

CORZ was trading at $14 one year ago. Today it is trading at 14 cents.

[Presbyterian Reporter]

Let me add that the Grinch has stolen Christmas from the crypto investors in 2022.

I have not checked recently but the market capitalization of the cryptos must be down several trillion dollars.

[ByteMercenary]

Hopefully you sold a few million shares at or about $14 and are now ready to buy them back at $0.10. Having done that the next problem is the tax man ...

[Nervous Tick]

>> Hate to tell you but it’s “magic bean” money too.

Maybe I’m just an unsophisticated reactionary. But I note that the clerk at the grocery store, the gas station, the pharmacy, the local Wally World, all take those magic “US dollar beans” in exchange for goods that have tangible value.

None of the above take bitcoin or any other digital currency.

[aMorePerfectUnion]

ACTUAL money

Every (failed) currency is actual money... until it fails.

[aMorePerfectUnion]

Not surprising when they mined something that dramatically went down in value, making the cost of “recovery” too high to sustain.

I witnessed it in TX when the oil price made recovery too expensive to sustain.

Came back eventually, but took a long time.

[Nervous Tick]

>> Every (failed) currency is actual money... until it fails.

Can you please give me an example or two of a “failed” currency? (Not a gotcha question... a serious “student” question.)

The only one I can think of is Weimar Republic DM.

[Ultra Sonic 007]

Bitcoin is a ponzi scheme: https://www.ic.unicamp.br/~stolfi/bitcoin/2021-01-16-yes-ponzi.html

[aMorePerfectUnion]

Can you please give me an example or two of a “failed” currency? (Not a gotcha question... a serious “student” question.)

Every single currency that came before those in existence today failed.

[aMorePerfectUnion]

Try this direct link. I think it is better.

[Nervous Tick]

Thank you.

[aMorePerfectUnion]

List of +500 fiat currencies that failed (google doc)

[Codeflier]

That isn’t entirely true, there are stores that will take BTC.

[Nervous Tick]

That isn’t entirely true, there are stores that will take BTC.

https://99bitcoins.com/bitcoin/who-accepts/
That's one of the better examples of what I found on line

Conclusion

While not a lot of places accept Bitcoin directly, it’s clear to see that the adoption of Bitcoin as a payment method is increasing with each year. One example is the emergence of companies such as NowPayments, a crypto payment gateway that can integrate to any business and allow it to accept Bitcoin, as well as many other coins.

So, while we still have a long way to go until all companies will accept Bitcoin directly and not through payment processors or Bitcoin debit cards, you can find big brands like Microsoft, AT&T, and Overstock that have already taken a step in the right direction. From Who Accepts Bitcoins in 2023? List of 20+ Major Companies https://99bitcoins.com/bitcoin/who-accepts/

[ghost of nixon]

I have a policy of ignoring things that seem stupid or don’t make sense to me...but the term “bitcoin mining” bugs me every time I see it - WTF is bitcoin mining?

[catnipman]

“Hate to tell you but it’s “magic bean” money too.”

i know ... but i love that BS government magic bean money because i can buy anything i want with it anytime i want it AND it’s STILL the best magic bean money in the world, given that it functions as the world’s reserve currency ...

oh, btw, i too made my OWN magic bean money on the the ethereum chain via studentcoin.org and i’m very happy to exchange it 2:1 for any of that worthless “BS government fiat currency” money ... that’s a really good deal too, because you would be getting TWO, i repeat TWO, CatNipManBux (CNMB) for each of your worthless “BS government fiat currency” dollars ...

[catnipman]

“CORZ was trading at $14 one year ago. Today it is trading at 14 cents.”

quite the opposite of buy low, sell high ... actually, CORZ SHOULD be zero because shareholder value is 100% wiped out in bankruptcy ...