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Replies to post #16796 on Microelectronics Technology Co. (fka MELY)
05/21/14 3:12 PM
05/21/14 3:41 PM
05/23/14 12:27 PM
The total computing power is rising at such an exponential rate, that machines have a short productive lifespan. Even a delay of a month or two between the time a customer places an order and the time the machine arrives can severely cut into profits.
Washington-based Alydian simply went bankrupt as the cloud-based mining business it built couldn’t keep up with the increasing power demands.
It now takes machines with multiple dedicated chips to mine profitably, and increasingly even that kind of computing power doesn’t provide a sufficient return on the investment, given the falling price of bitcoins, the increasing size of the mining community, and the concurrent increasing energy demands, which has emerged as a major roadblock.
As more miners come aboard, the bitcoin algorithm automatically adjusts its difficultly higher. This has sparked an arms race, with miners deploying increasingly powerful computers to stay on top. That has led to a rising spiral of costs. It’s reached the point where it’s become cost-prohibitive for people to mine on their own. Cloud mining, where miners buy contracts from companies like CoinTerra and PeerNova, is emerging as a cheaper option.
