Well, it been a long time since I have last posted. I am still mining, and of late have been enjoying the $400+ price of BitCoin. HOWEVER… I am concerned with my rewards being cut in half on or about June 13th. of this year See the clock here.
Although the price of BitCoin has been rising (overall trend is up, but not without it’s retreats from time to time), it would need reach about $600.00 just to keep even with the profitability of pre-halving prices. I suspect most miners will be shutting down their mining rigs if the reward is cut in half but the price does not double.
The price of BitCoin hovered around the $250.00 range for quite a while. Given my electricity costs, that is about the break even point for me. Maybe a little less because I use the heat generated from the miners to augment heating my house. But that does me no good during the summer months. In fact, in the summer months it costs even more electricity to expel the heat generated.
The other concern for me is, how widespread will BitCoin use be? Techie folks, and miners, likely don’t mind the sometimes wide fluctuation of price, but I fear the general public will never get used to that. Yes, the value of the dollar fluctuates, but the general public never see such. If you have $20.00 in your wallet today, you will have $20.00 a week from now (provided of course you haven’t spent any), however, that’s not the case with BitCoin. Yes, if you had 1-BitCoin today, and didn’t spend any, you would still have 1-BitCoin next week, however it would likely not be worth the same. You could have less value, and of course you could have more value also. The general public is not ready for such wide fluctuation in value.
So… why take a chance on using BitCoin? Anonymity of use will not appeal to most, and the fluctuation of price will scare them to death. Cost and speed of transactions is appealing now, but the double-edge sword is the general acceptance by the banks. When BitCoin becomes as convenient as the dollar, those folks providing the convenience will be charging for such services, thereby increasing costs (and all but eliminating what (if any) anonymity of use there was).
Additionally, BitCoin is currently largely flying under the radar of the taxing authorities. As the level of transactions and use grows, you know the government will be stepping in to tax and regulate it. And, should it be designed in such a way that it can not be taxed and regulated (i.e. decentralized)… it will be outlawed. Never underestimate the power of the governments reach into every aspect of your life, and your finances are the most attractive aspect of their reach. As the old saying goes, the only 2 sure things in life are death, and TAXES!
Don’t get me wrong… I am a believer, and supporter of the BitCoin concept. But because I don’t know what the future holds with respect to government intrusion (or other influential parties) into the control of BitCoin, I have a large degree of uncertainty that BitCoin of the future will look and function anything like what users today enjoy. BitCoin technology may survive, but will users enjoy any of the benefits it currently offers?
What are your thoughts ??? I would like to hear from you. Other readers could benefit from your thoughts also. And, from a mining aspect, if any reader could offer some clarity on the confusion now taking hold with respect to the many new versions of block-chain technology coming on line (competition to BitCoin Core), I’m sure other miners like myself would appreciate some insight and unbiased explanation of the benefits and drawbacks of such.