3'rd largest coin miner declares bankruptsy

L

Lakados

[H]F Junkie
Joined
Feb 3, 2014
Messages
10,378
https://financialpost.com/pmn/busin...-declares-bankruptcy-as-crypto-winter-lingers
61n804.jpg
 
More idiots who had no idea how to run a business, thinking BTC would only go up uP UP!
This is the issue with so many in crypto and this being their first bear market, they dont have a bloody clue and saved nothing for just incase.
 
The company contributes about 10% of the computing power to secure the entire Bitcoin network. It had 243,000 servers for Bitcoin mining with 143,000 for self-mining. It has provided hosting services to the largest miners in the industry.
Click to expand...
What a complete waste of computational power.
This could have gone toward literally anything else - medical, science, hosting, data processing - but no, generating and backing a fiat currency based upon less than nothing now worth fractions of what it did just a year ago.

I am truly amazed this has all lasted this long.
Just another step closer to CBDC... :borg:
 
Red Falcon said:
What a complete waste of computational power.
This could have gone toward literally anything else - medical, science, hosting, data processing - but no, generating and backing a fiat currency based upon less than nothing now worth fractions of what it did just a year ago.

I am truly amazed this has all lasted this long.
Just another step closer to CBDC... :borg:
Click to expand...

85% of the world lives in third world countries with unstable economies with hyperinflation and currencies that are worth nothing from one day to the next, they would rather convert to bitcoin and maintain some purchasing power than none. Bitcoin is prolific in the non-"first world."

First world citizens thinking everyone else has it the same are out of touch with the rest of the world.
 
Stryker7314 said:
85% of the world lives in third world countries with unstable economies with hyperinflation and currencies that are worth nothing from one day to the next, they would rather convert to bitcoin and maintain some purchasing power than none. Bitcoin is prolific in the non-"first world."

First world citizens thinking everyone else has it the same are out of touch with the rest of the world.
Click to expand...
Yeah, because it is working out so well for those countries that have converted to Bitcoin like El Salvador...
I certainly hope you aren't one of those first world citizens who are out of touch with the rest of the world. :meh:

However, it turns out that forcing your nation’s banks and stores to accept a currency large swaths of the population are unfamiliar with and don’t trust is a good way to tank your economy, according to a castigating report by Fortune.
Click to expand...

rism.com%2F2022%2F01%2Fel-salvador-bitcoin-economy.jpg
 
Last edited:
Stryker7314 said:
Bitcoin is prolific in the non-"first world."
Click to expand...
Being able to mine anything at all netting you just $1 daily is $30 monthly, and that's real money, even for me in my 2nd world.
When SHTF in February, the USD went from around 4 PLN to as high as 5 PLN in October.
That lets me offset costs incurred due to hyperinflation here.
I think it might keep going, but I don't want to play that anymore. I'm now eyeballing something else.
 
I dabbled in Bitcoin for fun, but personally I just stack physical gold and silver for a real store of value and hedge against the dollar that carries no counter party risk.

If you do sit on a pile of precious metals, make sure you can defend it. And stack non-perishable food items as well. You can't eat your gold in a SHTF scenario.
 
NukeDukem said:
I dabbled in Bitcoin for fun, but personally I just stack physical gold and silver for a real store of value and hedge against the dollar that carries no counter party risk.

If you do sit on a pile of precious metals, make sure you can defend it. And stack non-perishable food items as well. You can't eat your gold in a SHTF scenario.
Click to expand...
Yeah, I keep like a week or two worth of non-perishables and physical gold in case I need to pack up and run from a big mushroom in the sky.
 
Bitcoin.......it started out as an interesting experiment.............but the minute the second coin came out because bitcoin became "Too hard, man...", you realized "oh this is monopoly money". I assumed the people behind new coins were the power company conglomerates or organized crime or something. :)
 
michalrz said:
Yeah, I keep like a week or two worth of non-perishables and physical gold in case I need to pack up and run from a big mushroom in the sky.
Click to expand...
If you see the big mushroom in the sky you're already dead, you're just going to die sick and miserable and get eaten by rats :p Better to have it happen quick, naked on the roof with a bottle of Johnny Walker and a middle finger pointed at the sky :)
 
NukeDukem said:
I dabbled in Bitcoin for fun, but personally I just stack physical gold and silver for a real store of value and hedge against the dollar that carries no counter party risk.

If you do sit on a pile of precious metals, make sure you can defend it. And stack non-perishable food items as well. You can't eat your gold in a SHTF scenario.
Click to expand...
Lead will be worth more than gold/silver when the SHTF.
 
Red Falcon said:
What a complete waste of computational power.
This could have gone toward literally anything else - medical, science, hosting, data processing - but no, generating and backing a fiat currency based upon less than nothing now worth fractions of what it did just a year ago.

I am truly amazed this has all lasted this long.
Just another step closer to CBDC... :borg:
Click to expand...
folding would have been a good start. all that computer power could have done a lot for science.
 
Stryker7314 said:
85% of the world lives in third world countries with unstable economies with hyperinflation and currencies that are worth nothing from one day to the next, they would rather convert to bitcoin and maintain some purchasing power than none. Bitcoin is prolific in the non-"first world."

First world citizens thinking everyone else has it the same are out of touch with the rest of the world.
Click to expand...
I imagine it depends a lot by what we mean by world here, because China currency is solid and more than 15% of the world population, India can have pain when the country try to limit cash use and so on, but hyperinflation ? Is the Argentina of the world that much of the norm ?

Bankie said:
That's no different from precious metals, stocks, baseball cards, Beanie Babies, or anything else.
Click to expand...
Gold has more use than purely transfer or trade at least now, space, electronics, teeth, it has a list of impressive properties
Stock obviously no, look at twitter stock for a recent example TRTW does not exist anymore.

Has for the giant miners closing down, could that reopen the discussions about a single entity large enough, like a state being able to become 51% of the miners and do some shenanigans, in the past it was claimed the world mining was too big for that to be realistical...
 
NightReaver said:
Right. But crypto was supposed to be the promised deliverance away from fiat and the prying eyes of government. lol.
Click to expand...
Which would be quite the challenge, if we take Argentina for a best case scenario for crypto adoption, because you can't buy house in USD legally and that people pretty much only sales house in USD because of the inflation issue, people had the habit to buy house using giant pile of USD cache, going to crypto had some benefit there.

But you still need someone physical real world entity to register the transaction in some ways a who own the house, to not be in trouble one month later if the previous owner call the cops, has of now bitcoin seem limited in that regard, there some empty vaccumm of either you leave somewhere with serious institution to track ownership and usually money is really good or not and the tracking of ownership stay an issue crypto or not
 
LukeTbk said:
I imagine it depends a lot by what we mean by world here, because China currency is solid and more than 15% of the world population, India can have pain when the country try to limit cash use and so on, but hyperinflation ? Is the Argentina of the world that much of the norm ?


Gold has more use than purely transfer or trade at least now, space, electronics, teeth, it has a list of impressive properties
Stock obviously no, look at twitter stock for a recent example TRTW does not exist anymore.
Click to expand...
Yes, gold has use but the reason people hoard is as a store of wealth to convert to fiat. It's not like you can go anywhere and buy anything with it without first converting it to cash so in some ways crypto is even more useful since there are a handful of places that will take it without the need to exchange it for something else.
 
Red Falcon said:
Yeah, because it is working out so well for those countries that have converted to Bitcoin like El Salvador...
I certainly hope you aren't one of those first world citizens who are out of touch with the rest of the world. :meh:



View attachment 536566
Click to expand...

You linked to an American financial media outlet which I automatically dismiss as whole or partial lies. You should understand that American media has, quite literally, zero credibility and everyone should immediately assume that whatever they say is a lie until fully proven otherwise beyond any doubt. If the American media tells me that the sky is blue, I must immediately run outside to look up in the sky because I cannot be sure. This is how bad it is.

Also the American agencies are notorious for fomenting revolutions and meddling in this part of the world. Perhaps some of this is warranted given other influences coming in from around the world, but this is something to remember when looking at the above picture.

Plus the picture looks like a bunch of old people that probably don't know how to internet very well. Physical, printed, BTC notes would probably solve this - plus can't be counterfeited.

Also, as I recall, supposedly the El Salvadoran government is about to pay its debts off completely. If one is getting out of debt it would make sense that many government benefits would be curtailed until the debts are paid off; which would anger many older and more vulnerable people. Small price to pay to be free from the influence of the international money cartel.

Finally, the American media claims that crypto is the "currency of criminals" and some still believe this; for those that do, I leave you with a picture of El Chapo's bed:

money_cover.jpg


Clearly the US dollar is the preferred currency of criminals everywhere.
 
MrGuvernment said:
More idiots who had no idea how to run a business, thinking BTC would only go up uP UP!
This is the issue with so many in crypto and this being their first bear market, they dont have a bloody clue and saved nothing for just incase.
Click to expand...
This is because people like to take $10 and magically turn it into $100. That's what crypto and the stock market is all about. The difference here is that crypto is backed by nothing. Especially now that you can't mine it with computer hardware. There's more value in bottle caps than crypto. The only way to give crypto value is if USA or EU decides to adopt it as a secondary currency. Countries with lots of guns is what now gives money value.
 
Stryker7314 said:
85% of the world lives in third world countries with unstable economies with hyperinflation and currencies that are worth nothing from one day to the next, they would rather convert to bitcoin and maintain some purchasing power than none. Bitcoin is prolific in the non-"first world."

First world citizens thinking everyone else has it the same are out of touch with the rest of the world.
Click to expand...
I live in a third world country. You are talking out of your backside.
 
GDI Lord said:
I live in a third world country. You are talking out of your backside.
Click to expand...
No kidding. I think some of the crypto enthusiasts have a skewed view of how life outside the US is. Not all 3rd world countries have tons of inflation. You can usually find a few in the world that are examples of high inflation (though usually not actual hyperinflation which is generally 50% per month or more) but most are far more sedate and in line with the kind of inflation the US has been experiencing in 2022.

That aside, you want inflation? Bitcoin has suffered massive "inflation" in 2022. Argentina has been about the worst country that we have reasonable 2022 data for (inflation data isn't always super current for lots of places) and is about 92%. So a Peso buys you about half as much as it did a year ago. That sucks. Bitcoin? Well that was about 51k/USD a year ago, it is about 17k/USD now. That means a bitcoin buys you about 1/3rd as much as it did, so about 300% inflation in a year.

Ouch.

As a reference, Colombia has ad about 13% inflation and is still higher than a lot of other "3rd world" countries.

Also, want to know what is even worse than inflation for a currency? Deflation, which is what you are talking about if the price of bitcoin skyrockets. Deflation can absolutely strangle an economy. An investment is something you'd like to appreciate in value, preferably quickly. A currency is not.

Want to know what's even worse? Huge instability where you can have both massive inflation, and massive deflation, where value is hugely unreliable. When something can run up in value and then crash down, and back up and back down, that is HORRIBLE as a currency. Makes running an economy nearly impossible.

If you want to argue Bitcoin as a currency, you would want it to be as stable as possible, whatever the value. The important thing, value wise, for a currency is that what it buys today is about the same as what it buys tomorrow. Stability is not what Bitcoin has.
 
Bankie said:
Yes, gold has use but the reason people hoard is as a store of wealth to convert to fiat. It's not like you can go anywhere and buy anything with it without first converting it to cash so in some ways crypto is even more useful since there are a handful of places that will take it without the need to exchange it for something else.
Click to expand...
More in a sense of floor for its value (if there is no fusion that make extracting it from the ocean feasable or asteroid) will have a minimum via its functional use.

DukenukemX said:
Countries with lots of guns is what now gives money value
Click to expand...
Countries ability to enforce people to pay a lot taxes and that paiment must be made in a currency or it will prison time, which in a way can be the states having lot of guns I imagine.
 
THRESHIN said:
folding would have been a good start. all that computer power could have done a lot for science.
Click to expand...
Completely agree, even my Raspberry Pi CM4 is dedicating its computational processing to Team 33, let alone any other resources I can dedicate to it. (y)
 
Made a few grand back in the early BTC mining days (CPU mining, GPU mining, and FPGA mining using Butterfly Labs units for awhile)
Sure, the profit was nice, but did it more for the excuse of playing with hardware

Haven't paid attention to crypto since then, except for running Nicehash of actual non-mining systems for 1-2 weeks in 2021 when we were
freezing out nuts off in Dallas (wish I had gone to Cancun...)
 
Bitcoin is another way of saying, that you need to make sure this is not fools gold.
 
NightReaver said:
Right. But crypto was supposed to be the promised deliverance away from fiat and the prying eyes of government. lol.
Click to expand...
And that is exactly what it turned out to be. Like someone trying to sell you a timeshare, or a ponzi scheme, or something too good to be true. The people who are bigger and stronger and more powerful than you took your money/investments and you'll never get it back now. Surprise Surprise huh!?! Been going on since the beginning of time....

(You not meaning you good sir or madam, you in general to those who invested heavily in a fools errand. I can't fault anyone who dabbled, I mean free money is free money and if you had your gpu doing some mining or whatever on the side....I didn't but wouldn't criticize those who did).
 
NightReaver said:
Right. But crypto was supposed to be the promised deliverance away from fiat and the prying eyes of government. lol.
Click to expand...
Actually, I think it was more of removing control of your assets from intermediaries like banks, which have to answer to the government (sometimes?), and putting control of your assets in your hands instead.
 
Stryker7314 said:
Cool story bro. South Africa 🙄 This place:
Click to expand...

First-world countries are countries in NATO or the larger US/UK influence. Second-world countries are those that were under the umbrella of the USSR or China during the Cold War. Third-world countries make up the rest.

That's the definition, not the state of the economy or anything else.
 
Axman said:
First-world countries are countries in NATO or the larger US/UK influence. Second-world countries are those that were under the umbrella of the USSR or China during the Cold War. Third-world countries make up the rest.

That's the definition, not the state of the economy or anything else.
Click to expand...

Pretty sure the point went right over your head. Thanks for sharing.
 
You must log in or register to reply here.
Back
Top