Comment Industrial Bitcoin Mining (Score 1) 595
How prevalent are industrial bitcoin mining operations? That is - people setting up racks of optimized servers that only run when the very lowest electricity rates are available. Does anyone know anything about this? Such an operation would not seek to hold bitcoins. but merely produce them and cash them in to collect pay the bills and make a profit in conventional currency. Of course the could hold their bitcoins, but that would be combining a separate line of business with the mining.
If the cost per bitcoin some are estimating here (~$30) is correct then this would be a compelling business opportunity. Once the servers are paid for, a crash in bitcoin value only leads one to turn the servers off until the value rises again (making running them profitable), much like oil wells that only produce when oil prices are high.