Argo Blockchain Share Discussion Threads

[john henry] 05/3/2020 17:04

If mining margins are currently 50%, at halving BTC reward is reduced by 50%. Are ARB mining margins at halving reduced to 25% or 0% ??????

[chilly0] 05/3/2020 15:58

Yep government don't like BTC, banks don't like BTC, most of the rich don't like BTC but they can't do anything. It's decentralised. They can ban it but what message is that especially in a democratic country and they know if they ban it more people will want it. here to stay baby

[mnomis] 05/3/2020 13:48

LOL - yip, is fairly funny. Like when Gordon Brown sold half the UK's gold at $275/oz.

[hootza616] 05/3/2020 13:36

We need to hear more from these ancient old world folk who dismiss crypto, every time they do the price goes up!

[parsons4] 05/3/2020 12:24

benny70 I agree with your post which is why probably most of us are invested here. sf5 he is talking his own book and yes Hootza616 you are right Central bankers would all like to kill BTC which is why it is popular and becoming more so.

[crooky1967] 05/3/2020 09:57

I think the company is betting on Bitcoin price rising to offset the effect of the halving or difficulty falling if BTC prices remain broadly where they are. Depends on what models you look at and who you are following to see where it is heading. If it follows the well regarded stock to flow model then you could be seeing price above $20k this year and moving upwards next year.

No worse investing in Argo as an oil and gas company or metal miner. They all need to spend money to produce more product and are affected by prices of their commodities. I believe that with Argo such a low mcap there is less risk here than investing in other companies and sectors and the reward could be massive.

They certainly should have cash in the bank to weather any short term storms caused by the halving.

[mnomis] 05/3/2020 09:43

Topaz, I have been saying something similar - the key thing to get past is the halving, when margins (temporarily based on current pricing / difficulty before adjusting) drop to zero. Mike presumably understands the business better than anyone and is selling out. WHY? My assumption is because of the uncertainty around halving - but, maybe he just has another even better use for the money.

Either way, a business destined to drop revenue 50% shortly, while still running the same no. of machines / cost base is not without risk.

[crooky1967] 05/3/2020 09:42

I believe Milton and possibly Hadron are also selling. They all must be on fumes by now though.

[topazfrenzy] 05/3/2020 09:39

mnomis, the reason this is not soaring yet is because Mike who left the company is selling his holding ... wait until the halving and then see the big money pile into this and Bitcoin

[hootza616] 05/3/2020 09:10

Can anyone confirm the intrinsic value of the pound or any other fiat?Here's a very interesting take on it from South Africa.The state will try everything to kill BTC. But they simply cannot, and the more they bleat about it the more popular it will get, because no one trusts a banker! https://www.google.co.uk/amp/s/rationalstandard.com/intrinsic-value-paper-money/amp/

[sf5] 05/3/2020 08:26

Bailey tears into BTC again....

He's old school of course. But obviously has greater understanding of currencies than most.

[hootza616] 05/3/2020 00:27

Benny70 at last someone who understands the beauty of bitcoin mining!

[mnomis] 04/3/2020 20:55

Benny70, spot on. It adjusts over time (or the system stops working) - hence why I am a holder. Just don't like how much BS there is on this board by keyboard warriors with likely tiny holdings.

[mnomis] 04/3/2020 20:52

Topaz, why don't you provide some proper arguments to explain where people "ain't got a clue" instead of resorting to juvenile posts.

Perhaps you could explain how the market has this so wrong and you know best???

[benny70] 04/3/2020 20:51

But if everyone stops mining because it's unprofitable at the current difficulty then the hash rate drops and so does difficulty.
It rights itself, all you have to do is endure you are one of the most efficient.
If ARB aren't making a profit then no one is so no coins mined at all.
ARB expect all the S9s to drop out after the halving leading to up to 40% drop in the hash rate.

[mnomis] 04/3/2020 20:49

What is most strange is that people who don't understand the most basic accounting/maths concepts resort to swearing.

Supercity, think we wasting our time explaining this.

[mnomis] 04/3/2020 20:46

John Henry, suggest a course in accounting or put down some figures on a piece of paper. Surprised by how many people on this board cannot understand that a halving of revenue at a 50% margin means zero margin afterwards (until inputs such as price / difficulty adjust). Mining costs DO NOT reduce, simply because rewards do.

I trust is a minority and that this is priced in.

[supercity] 04/3/2020 20:15

They mined 337.5 coins at £2.54m in revenue at fifty percent works out at £7,500 per coin or £3,750 to mine a coin (multiply by 1.3 to get your dollars) and you are looking at just under $5,000 to mine one coin.From May that means it will cost $5,000 to mine half a coin or $10,000 to mine one - that's as simple as it is based on today's figures.

[king suarez] 04/3/2020 19:56

Not true?

If revenue drops by half, due to the rewards dropping by half, then all else equal (costs being relatively fixed) the margin drops to zero, not 25%?

The machines are still running flat out, so using full electricity costs, and the wages are unchanged - so explain how margins drop from 50% to 25% upon halving, all else equal.

The mining difficulty must change and/or Bitcoin price rise in order for margins to be maintained.

I am invested here because I believe ARB, being (one of the lowest?) a low cost producer will benefit from the mining difficulty being reduced as other miners are unable to make a profit upon the rewards halving unless/until the BTC price rises..

[john henry] 04/3/2020 18:53

Some unbelievable posts on here today, there really are some thick f uckers

[john henry] 04/3/2020 18:51

Basic maths needed mnomis, margin reduces too 25%

[chilly0] 04/3/2020 17:52

It's fair to say BTC will out live ARB. Of course anything can happen

[chilly0] 04/3/2020 17:51

It's fair to say BTC may out live ARB

[chilly0] 04/3/2020 17:50

I stand corrected 2140 for last BTC. Just Google search