/biz/ - Business & Finance

[Anonymous No.12124695]

Ok /biz/, brainlet here ! If chinese miners are the ones shorting bitcoin now and considering that it costs ~$3000 to mine a bitcoin in China aren't they actually fucking themselves over if the price goes lower than $3000? I mean OK, you can short it, gain BTC, in the end you will have more BTC than you started with but the price would also be lower in terms of USD and you will have to probably wait even more for the fucked up market to recover, so you can sell at break even or +.
If this is true and the chinese miners are the major shorters than isn't this indeed the bottom following my brainlet logic from above?
Also if they short sell to hedge, how come is that a hedge considering you're losing USD both from shorting as the price goes lower and from your mining operation? What am I missing here?

[Anonymous No.12124734]

mining is a double edged sword. it was never "the mining reward was set at $5,600 therefore it will never drop below 6k because miners wont let it" bs back in june because the lower it gets more people leave the pool meaning that the block can be distributed to fewer number of people so they make more money. However once it gets to that stage other miners will see this and want a piece of the action so the block reward will go down again. This cycle can happen independent of the price however the price is necessary for this cycle to take place, ergo proof of work is true capitalist nature and why it is the only system we should have
Miners are not shorting anything they are like the laborers of bitcoin, if the price tanks then miners will switch to a different algo that offers greater incentive, ANYBODY shorting right now is gaining 'less' valuable btc because that is the point of shorting. however you are gaining more wealth than people who hodl i dont really understand your question desu

[Anonymous No.12124762]

It should also be noted that chink miners aren't the only people shorting. Whales and ICOs are also contributing to this insane downtrend. this is especially true for ETH. Some ICOs even have it written in their white paper that they will start shorting ETH if price fluctuations threaten to interfere with their operation, a few have even hire "professional" traders. Addressing OP's question, however, I'm pretty sure the difficulty of mining bitcoin scales with price so as we go lower mining costs should drop as well, but don't quote me on that because i'm not a miner and don't really know what the fuck is what

[Anonymous No.12124772]

Those fucking delusional chinks cant scam anybody again with btc pumps

So they commit a heroic suicide together.

Fucking chink scam