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16588160 No.16588160 [Reply] [Original]

Who on earth would spend large amounts of money upfront to mine a highly volatile asset whose profit margin quickly drops as more people mine, and take weeks/months/years/never to recover initial costs, when they could just buy the asset itself? Is there some economic theory I’m not understanding?

>> No.16588194

Because people might value your output which is the freedom to transact with other people in a borderless economy that can't fuck you over with arbitrary laws, monetary policy changes, or taxation.

>> No.16588215

>>16588160
The profit margin of everything drops as new participants enter. A perfectly competitive market has an expected profit of 0.

>> No.16588227
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16588227

I asked this question in 2017 and got called a retard. So you soend 50k to mine at $2400 btc.. Instead of buying 20 btc.. Smart.

>> No.16588831

>>16588160
and for this reason nones getting into the mining bussines. Just the same old guys mining the same old coins