Profitability equals (reward of btc mined/block/day in USD)/cost in USD, plus appreciation/depreciation value of btc calculated in USD
On average bitcoin difficulty increases x2 over 6 months. Payout in btc theoretically will reduce by half. Average break even period is about 6 months provided price remain constant, yes?
Say IF btc increases in value over 6 months,
Person A invested (x) amount of USD into miners and average payout in btc is (a). After 6 months he would expect payout in btc to be (a/2). Cumulatively, he would have break even earlier follows the btc appreciation.
Similar scenario,
Person B invested (x) amount of btc into miners and expect (a/2) payout in 6 months. His goal is to generate more btc using btc he invested earlier. As his cost is calculated in btc, he would not be able to enjoy the benefit of btc appreciation, yes? His break even time would solely be depending on profitability measured in btc, which determined by mining difficulty. Would he be able to break even by 6 months then? Or is it just a bad business strategy where eventually he would be constantly in debt to buy more miners using btc to mine btc?
I am actually the person B in the scenario, I stored almost all my wealth in btc and purchased some miners using btc, to generate more btc in the future. I’m starting to think I’m in a losing business now =(
Any kind souls willing to share some light into this matter? I really need help :/
Submitted November 03, 2017 at 08:41AM by Hashley123 http://bit.ly/2yqEr5H
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