$CleanSpark (CLSK.US)$ can someone explain to me how any of ...
$CleanSpark(CLSK.US$ can someone explain to me how any of these mining companies will have any earnings that are worth a shit? they're underlying commodity is down 30% this quarter that would be no different than an oil company that refines oil and sells it when the price of oil drops by 30% within a 3-month period of time frame their profits would drop and consequently stocks get hammered when earnings come out so how is it that these mining companies are going to be able to sustain their current valuations when what they are selling reduces their profits and their revenues by a third
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35+ yrs in the trenches, raised tens of millions for start ups, syndicate ipo's, yrs on trading desk mkt maker.
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BFSkinner : B/c the few bigger miners will gain market share and smaller miners will capitulate. There’s still plenty of time to mine btc, plenty of room for it to
10baggerbamm OP BFSkinner : making assumptions that large miners will continue to grow what I'm saying is the commodity that they are mining is down by 30%, therefore when they sell it their revenues are less so when you factor in the having that took place with the fact that the prices come down by a third their energy expenditures are higher on the margin not lower their cost to mine have gone up they haven't come down on the margin therefore their profits will be down significantly it's basic math
BFSkinner 10baggerbamm OP : There’s still the max supply of btc which creates the supply crunch and value will rise over time
10baggerbamm OP BFSkinner : your argument fails because the same goes with oil in the ground there's what's called peak oil and that's been discussed at nauseam it's real simple if the commodity that you sell the price falls by 50% you need to increase your production by over 100% to maintain the same level of profit and the reality is when you increase your production your cost also are increasing so unless you have some type of economies of scale on the manufacturing side or production side even a doubling of production produces lower net income
BFSkinner 10baggerbamm OP : Max quantity is known for btc. Not so for oil
10baggerbamm OP BFSkinner : you're completely wrong because there's been arguments made about peak oil for years but this is basic economics I don't think you have an understanding of economics if you produce 100 items in a quarter and you sell them at $10 your gross is a thousand. now if the market itself no longer demands your good and is only willing to pay you $5 your gross is $500. bitcoins fall in 30%. the cost of production is increasing not decreasing therefore your margins have deteriorated further. and the value of your goods sold is down by a third you cannot exceed wall street's estimates it's an impossibility to do so 100% guaranteed you will miss revenues you will miss earnings and you will miss margins book it guaranteed
104298925 : JUst sell everything if you cannot afford to hold.
10baggerbamm OP 104298925 : obviously what I'm discussing is way above your pay grade to have the ability to comprehend
Paul Anthony BFSkinner : good very helpful thanks