You are viewing a single comment's thread from:
RE: How profitable is Bitcoin mining? (Part 2) Analysis of Genesis Mining using an idealized model.
I think alot of people assume that the price of bitcoin will go up as difficulty increases, thus extending the life of the contract. However, if the price goes down and stays down, many contracts will stop prematurely and that would leave alot of people with a loss.
I agree that the point is often overlooked. This is why the running cost (incl. electricity cost) is important.
In the next post, I analyzed another cloud mining contract by Giga Watt, which has low hosting fee.