Economics

Some basic enonomics musings applicable to crypto currencies

Musings

Market Dips

oh what’s this? the market for my coins dipped a reasonable percent nuking my daily profit?

the market shifts can seriously impact your value in the short term

this is why you mine for long positions, not shorts.

Economies of Scale

don’t forget economies of scale. a million CPU cores generating a dollar in profit is still a million dollars in profit.

small numbers are big at scale. it’s why megacorps shave pennies in their supply chain.

pennies add up fast at scale.

how many pennies or dollars quantify scale for you? that’s important when thinking about your approach.

What’s Profit to you?

you really need to define profit when looking at mining…

asics rule the world for some coins with “big” profits. FPGAs for the next tier down. GPUs fall behind further with CPU dead last.

trick is: my CPU will always be flexible and generate a trickle of income. as things get more profitable specialization kicks in limiting your options.

how much diversity and flexibility do you want while retaining profit?